As you will see below, the first results are for one parent working full-time, and the second totals are an example of one parent working full-time and the second parent working part-time. I’ve created these reports based on averages in my google search results, as well as assumptions about the basic things people live with.
Of course, totals will vary from family to family, and scenario to scenario. So keep in mind that this report was built on estimates and averages for the 2019 year.
See the reports, and then keep reading below to see the questions this data led me to ask.
BOTH SCENARIOS assume $150,00 house debt (or a similar monthly rent),$100,000 combined college debt, $45,000 car debt (for two vehicles), and $5,700 credit card debt, which is the national average.
SCENARIO 1
1 parent working full-time
$1,050.00 insurances (health, life, & car)
$2,550 debts (house, car, education, credit)
$500 utilities (water, electric, gas, trash)
$200 entertainment (internet, cable, Netflix, etc.)
$800 food & grocery
$200 gasoline
$400 savings (retirement, college, vacation, etc.)
$400 miscellaneous (school expenses, gifts, tithe, extras)
——————
$6,100 in monthly expenses
Scenario 1 has a yearly income of $55,000 and yearly expenses of $73,200, with a DEFICIT of $18,200.
SCENARIO 2
1 parent working full-time and the other parent working part-time
$1,050.00 insurances (health, life, & car)
$2,550 debts (house, car, education, credit)
$500 utilities (water, electric, gas, trash)
$200 entertainment (internet, cable, Netflix, etc.)
$800 food & grocery
$200 gasoline
$400 savings (retirement, college, vacation, etc.)
$400 miscellaneous (school expenses, gifts, tithe, extras)
$1,000 childcare services (daycare, before/after school care, etc.)
——————
$7,100.00/month expenses
Scenario 2 has a yearly combined income of $80,000 and yearly expenses of $85,200, with a DEFICIT of $5,200.
*Not included in either budget are renters/home-owners insurance, pet expenses, HOA fees, extra services utilized, uncovered medical expenses, etc.
QUESTIONS:
- Why, in both scenarios, is there a deficit?
- Are worker wages not high enough?
- Do Americans live beyond their means?
- Can we live our lives without these (or any) debts?
- Can you relate to either budget/scenario?
- By living according to a budget with an annual deficit, are we accruing more and more debt annually?
- Are some of the expenses we consider to be “needs” actually “luxuries”?
- Are we willing to change the way we live, either by changing our income or by reducing spending, to stop going into debt and start living within our means?
- If both spouses work full-time, this budget will work out, but as income increases, will expenses also grow?
- What are the biggest expenses and problems Americans face, and what can we, the people, do to help fix the broken systems and/or mindsets that exists?
- What questions or observations do you have pertaining to this?
I’m looking forward to reading your questions, answers, and thoughts on this subject! Thanks for reading and thanks in advance to those who contribute and respond!
