Average American Budget

grizzmoose · Jan 20, 2011

My wife and are considering buying a new car which would significantly change our monthly budget. It kind of got wondering how the average American budgets their money, regardless of how much they make. After all of your base expenses are paid, (mortgage, car, food, utilities, etc) what would you say you spend on entertainment and hobbies per month, and how much do you invest or put into a savings account per month?

beavis14 · Jan 20, 2011

i wish i knew ! my wife and i are kind of spoiled not rich by no means, but when we put money back it never stays there long as it's hard to have the self control not to buy this new movie, go out to dinner too often, go to cabelas to often ect. maybe hypnosis would help us . got to do something soon to save as gas prices are supposed to go way up by turkey season......

stanley · Jan 20, 2011

You KNOW Grizz, that the anwers are going to vary big-time here, depending on everyone's income/means.

After base expenses, I generally spend $1000-$1500 on 'fun' (dinners, movies, Cabelas', hunting, skiing, beach, etc...).

Before ANY of the above though, I have 20% of my gross salary taken-out automaticaly and put into my 401K. The MAX 'pre-tax', and everything over & above that is 'after tax'.

Save, save, save, everyone!!!!!!

S.

Cannon · Jan 20, 2011

Grizz
You ask about the average american.
I think they spend 2 to 8 percent more than they make!
It's going to get tough with gas going up.
Nice that you are in a position to be buying, some good deals out if you have the money.
Best of luck to you.
Cam

grizzmoose · Jan 20, 2011

Yeah, I totally recognize that answers will totally vary. Some of you guys out there are making some serious money. Im not one of them. I contribute 16% of my paycheck to investments. After all of my other obligations I only have about 1k left over. That includes a small allowance for entertainment and stuff. Right now I dont have any car payments, so the thought of reducing my surplus to only 600 or so a month kind of freaks me out. Id love to be banking some cash every month in addition to the 16% I invest. Just wondering how many people are actually in a position to put cash in the bank after all the other expenses we deal with.

BuckeyeBoy · Jan 20, 2011

We try to save at least the amount of an average car payment a month. We follow the Dave Ramsey budget and are putting away money to replace my wifes car in a couple of years. If you go to www.daveramsey.com you can watch a video on car payments and how much money you waste on them.

nickman · Jan 20, 2011

I never give anyone budget advice. I graduated from high school with nothing. After 45 years, I still have most of it.

257Tony · Jan 20, 2011

Currently putting $0 per month into savings/401k, and spend about 0$ on entertainment. Being in Construction really bites right now!

Hardway · Jan 20, 2011

Nope...Stockpile your cash unless it's a nessecity. I wont have my family riding in a junker but there aint nothing wrong trying to get 200k miles out of a car.
Look at it this way. A years worth of payments at your $400 is $4800. Do you think you will have $4800 worth of repairs in the next year? Probably not, but you will have that much more of a down payment and depending on your situation you may be able to pay cash when it really becomes a nessecity to purchase a new car.
Needing a new car because of size or saftey reasons (dependability) is a different story.

"A well regulated militia, being necessary to the security of a free state, the right of the people to keep and bear arms shall not be infringed."

justr_86 · Jan 20, 2011

I do about 7% into my 401k and they match it. I used to do 10 until they lowered the match. Did atleast 5 percent into my savings accound attached to my checking. Now I do atleast 8 and whatever is leftover in checking when I get paid again goes into savings. We try really hard to leave it in savings but some months we spend more than others so it varies. We plan on paying off my wifes car with my tax return, and our new years resolution is to get as far out of debt this year as we can. No new toys... We have to start paying on her student loans this year so that will replace the car payment, She isnt going to work until my youngest goes to school so things will be tight for a few more years and hopefully by then we will just have the mortgage...