Average Household Budget

By: Mary Smith - Staff Writer
Published: Mar 16, 2021

Average Household Budget. The average household has a monthly budget to cover all living expenses. Creating one is easy, but sticking to the plan can be hard for some.

You will want to break a household budget down into three sections on a monthly average basis: income, mandatory expenses, and discretionary expenses.

If you’re putting your household budget together and you’re wondering how you compare to an average household, there are several tools available on the Web that might be of interest to you.

The family budget template allows you to create a family budget, and this particular form will also provide you with a variance report (how well you’re doing). That budget form was built from an average family budget. You can download that document to see how the average American household spends their money each month.

There are also family budget calculators online that allow you to compare your monthly household expenses to that of an average household. All of this information is based on data gathered by the federal government. Your rent or mortgage should be first on the list when creating items that should be paid each month.

If you find yourself falling behind on your monthly payments, then it’s time to start learning some of the basics of creating a budget. The first rule of thumb for a financially sound home is simply this: Household Income must be greater than Expenses. Otherwise, you are living well above your means.

Budgeting 101, right? You’d be surprised how many families break this simple rule. But when you do break this rule, then you need to borrow money to pay your expenses. That is a short-term strategy that can lead to long-term problems.

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