![]() If you reduce the amount of money allowed for the transportation and food, that leaves more for the housing category. According to the Insurance Information Institute, the average American is spending 32% of their income on housing, 16% on transportation and 14% on food (62% of their total income). ![]() This doesn’t even include the extra money you’ll save on car maintenence, etc., and you’ll even be helping out the environment. By ending the cost of gasoline alone (3% annually according to the Statistics of the United States in 1994), you’re saving close to $1000 annually. Smith took the bus to work instead of driving, he could eliminate many expenses. You might cringe at the thought of ride sharing, but if moving to a new apartment is your ultimate goal, you really should consider it. To save money in this category, consider carpooling instead of commuting alone. So instead of spending $1,300 per year on eating out, he’d spend $520 and save nearly $780 a year!Īccording to the Insurance Information Institute, in 1995 the average American spent about 16% of their yearly income on transportation. Smith packed a fruit salad for lunch every day, not only would he be eating healthier food, but he could buy all the fruit he needed for a week for around ten dollars. Five dollars a day turns into $25.00 a week which is $1,300 a year! It’s always cheaper to buy in bulk from the grocery store than it is to buy in bulk from a burger barn! For example, if Mr. Smith usually leaves work for lunch every day to go to a burger joint. You’d be surprised how much of a difference this could make! For instance, Mr. One easy way to save money is by packing lunch for work or school rather than stopping at a local cafe. This doesn’t mean you have to starve while you sit at home doing nothing, but there are easy ways to save money.Īccording to the Statistical Abstract of the United States 1994, the average American spends about 5% of their income on eating out. Consider spending less on food, transportation, and entertainment. If you feel you need to save even more money, there are other ways to cut back. Once you’ve moved in, you should continue to follow the budget. You’ll want to have about three month’s rent saved in your account before you move in so that you can pay the security deposit and first month’s rent, and then have some left over so that if for some reason you go over budget one month, you won’t have to worry about making any payments. Start saving 25 – 30% of your paycheck for rent while you’re still living at home. Of course, these percentages will vary depending on your individual needs, but this is a general guideline. Financial advisor Nancy Dunnan and MetLife came up with the following guidelines to help you create a reasonable balance of expenses:Ĭash Flo and MetLife recommend you spend: Are you thinking about moving into your first apartment? Are you worried you won’t have enough money? Try setting up a budget which will help you save money and establish good spending habits before you get out completely on your own.
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