In this episode of Inside the Plan with the 401(k) Brothers, Bill Bush and Andy Bush, advisors at Horizon Financial Group, go through various budgeting scenarios based on average American age brackets, their typical household incomes, and the expenses that affect their spending.
Episode Highlights:
- 0:40 – Bill Bush and Andy Bush talk about household budgeting.
- 1:30 – If you are in your 20s or 30s, get into the habit of a household budget.
- 2:30 – Your best option
- 4:00 – What is the breakdown of the average American spender?
- 7:35 – People are spending beyond their means.
- 8:35 – What are the averages for taxes, food, housing, transportation, insurance.
- 13:10 – What is the average savings?
3 Key Points:
- The is the average American household income before taxes is $78,635 between the ages under 25 to over 75.
- Under 25, the average income is $32,000. But the expenses for that age group is also $32,000.
- People over the age of 75 on average are spending beyond their annual income.
Tweetable Quotes:
- “It all comes down to income and expenses.” – Andy Bush.
- “The thought of budgeting to me seemed restrictive. But the truth is, budgeting is really the opposite. It is freeing because there is freedom in that you have income that might have otherwise not been disposable.” – Andy Bush.
- “Most people are going to probably need to put 15% in for retirement.” – Andy Bush.
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