This money article is written by a great friend and guest blogger Mariella Sheriff.
Mariella is an expert finance specialist and investment advisor.
Shocking Money Statistics of United States Consumers
Have you considered whether you are an “average” income earner? I was recently reading some reviews about money statistics, which have completely shocked me.
So for this reason, I wanted to share my discoveries on my friend Joshua’s site Rebuild Repair Credit.
Here are a few numbers that you may relate to:
⦁ 68% of income earners live hand to mouth – in other words from paycheck to paycheck
⦁ 26% of the population in developed countries do not have any emergency savings
⦁ The average person, at the age of 65, will have put less than $60,000 for his eventual retirement.
⦁ Credit card debt is around $8000 per household
⦁ Average student loans in good families is never less that $30,000
What is considered to be average, and what is considered to be above normal?
Are you better than average?
These money statistics are very worrying. If you relate to any of them, then it is time to take urgent positive action. Financial stress is definitely one of the greatest causes of relationship breakdown, and physical malaise. Undue hardship on families due to financial stress can wreck even the best of bonds!
The average or normal person can improve on “normality”. They can do much better with money and finances with a few simple steps. So we have to remember we are average individuals. Because we are not accountants or auditors. Therefore sometimes, we are not the best at managing our finances.
Here are a few more facts, which again, you may attribute to, and these are eye-openers of where you should be having a hard look at your money and finances to manage better!
The average person will spend around $250 per year in lottery tickets!
Whether you believe this or not $70 billion are spent on lotteries every year in the United States. http://www.theatlantic.com/business/archive/2015/05/lotteries-americas-70-billion-shame/392870/
This article is very insightful. It explains that in 2014 people in the United States spent more money playing the lottery, than they spent on books, sports, games and movies tickets combined! This is a really high percentage of disposable income. This money could have been channeled to far better use.
Food Waste – 40% of Food purchased is Wasted
Now this is a statistic which completely floored me.
Most are spending $100 on food and binning $40 in the trash in the process!
There are nearly 34 million tons of food waste generated in the US each year!
This article shows some horrific statistics, which really shock, and which could be an eye opener on how to improve your “average” situation!
An Average Person will waste his gym Membership
This is a statement which sadly I relate to. Part of my new year resolution is always to be loyal to my gym master. But as the year takes its toll, the enthusiasm fades faster than the magic of the yuletide!
As an average person, you need to figure out, whether it is really worth spending that money. Either have the mindset to stay loyal to your fitness regime, or else don’t waste your money. Try wasting your energy in a different burn rate, such as home Zumba in front of your TV screen!
An Average Person will take a $27,000 loan for a new car
This article covers the Top 10 Auto Loan Mistakes made by the “average” individual.
There are two most common mistakes with money and cars to avoid.
They are, “following your emotions”, and looking at the car first before exploring your financing exposure.
It is also interesting to note the average car loan costs.
Even for a used car, average is $18,000!
This makes the average monthly repayment for a car loan $471 on a new car loan.
However, nearly as high, $352 is the average monthly payment for a used car loan.
To conclude, you should know that the people who can least afford it, are the ones who took the biggest car loans. Poor credit rating seems to be highly attractive to loan sharks!
So any idea how many family homes are repossessed by bank foreclosures?
This is a very insightful article. Showing 109,561 properties were scheduled for auction and bank repossession in August 2015 alone!
As a result, these statistic are very chilling. Families are losing their security in the hundreds of thousands. Some lose homes through misfortune. However, many lose homes from bad planning.
Knowing how much house you can afford is the first exercise you need to do.
Therefore use this tool prior to looking at any properties.
As with car loans “following your emotions” and “buying your dream” could end up being your worst nightmare. One more interesting fact is that 85% of an “average” income earner will always buy a house over their budget.
Americans spend 50% of their budget on Housing and Transportation
This is quite an awesome statistic graph. It shows that
Americans have a “weird love affair” with cars and houses.
Conclusion – Should we be concerned with our spending?
To conclude, our budget and how we spend our money are very subjective. Thus, it depends on age, location, and ability to create an income. Therefore the concern does not arise necessarily from high spending. Money Statistics depend a lot more on “bad budgeting”.
Most of all, do you feel pressured by debts? If so re-evaluate your budget planning.
Make your lifestyle conform with your financial circumstances.
So stop struggling to break even each month and cut back on other spending.
Because you will certainly benefit a lot in the long term from it.