Family Budget: What do you do with Money and Why?
In a previous article, we broke down the monthly budget for a single person in a one-bedroom apartment. In this post, let’s look at a family budget. We are examining a family’s income in addition to their expenses.
It seems that money is just flying out of our pockets these days. Where does it all go? Well having a family is expensive. With the average household income only being $61,957. It’s hard to keep food on the table and keep kids happy. In this technological world we live in everything costs money. Let’s take a look at what an average household spends their hard-earned money on. $61,957 is in the 22% tax bracket for filing jointly. Meaning after taxes the annual salary is $48,326.46. Making the monthly income $4,027.21
The numbers below are for a family of four.
Mortgage & Utilities
- Mortgage: $1,030
- Property Tax: $190
- Homeowners Insurance: $100
- HOA: $175
- Electric: $130
- Natural Gas: $100
- Water: $75
- Waste/Trash: $25
- Internet: $60
Total for Mortgage and Utilities: $1,885
- Phones for 4: $240
- Grocery bill $800
- 2 car payments: $600
- Car insurance: $322
- Health Insurance for a family of 4: $1,168
- Life Insurance for 2 adults: $350
Total for Secondary Expenses: $3,480 Total for both: $5,368. This family is in the hole for $1,340.79 PER MONTH! While some of these items can be reduced or in some cases removed. That is still a large gap. That does not include things like toys, gifts, clothes or any comfort items for the family. Take a close look at your finances and make sure that you are making the right decisions for your financial future. Save for retirement and make sure your kids are protected if something were to ever happen to you. Make sure you and your spouse have life insurance to prevent any loss in lifestyle or any of the essentials listed above.