Let’s take a deeper look into where the average American’s income goes and how much is left to save, invest and pay down debt. How do your spending habits compare?
78% of Americans state that they are living paycheck to paycheck just to make ends meet. 75% of workers say that they are in some sort of debt today. With more than half thinking they will always be in some way.
For spending and savings, we like to suggest the 50/30/20 model. 50% of after-tax income should go towards essentials such as housing costs, food, utilities, and healthcare costs. Additionally, 30% can be used for discretionary spendings such as entertainment, vacations, and personal expenses. Finally, 20% should go towards savings including retirement savings, emergency funds and short-term goals.
Curious about more spending trends? Check out this article on our tips for Holiday Spending.
Questions and Consultations
If you have questions or if you’d like to schedule an appointment to discuss your finances, contact us today.
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Partnership Wealth Management is a comprehensive financial services company. We are committed to providing our clients with financial planning and wealth management services to help them make the most of their investments. At Partnership Wealth Management we have a long history of working with the LGBT community. Among our many services, we offer financial planning for gay couples and lesbian couples as well as estate planning for gay couples and lesbian couples. Financial planning is an important part of preparing for the future, contact us today to get started: www.partnershipwm.com.