Wednesday, July 9, 2008

Seriously!!!

I was watching the Today Show this morning and there was a segment on ways to cut your budget in half. Since we just lost approx 40% of our income I thought it might be interesting. They showed a family of 4 who decided to cut their budget in half for one week. One week? Anyone can cut back for one week, but I watched anyway. On average they spend about $660/week. I'm not for sure if this accounted for bills or not, it didn't seem like it. So I looked up some figures on the median household income in the US. 2006 was the earliest I could find and according to Wikipedia it was around $48K. I took out some taxes and health insurance, which in my opinion was a little low, and I came out with about a $722/week net income. Keep in mind this does not account for savings or retirement. So the average household is bringing home $60 more a week than this family spends in a week. Did I mention this was $660 not including bills? What did this family do for a week that saved money? No morning Starbucks, no weekly pedicure for mom, dad mowed the lawn instead of paying someone, washed their own Lexus SUV instead of paying someone else to, went the local pool instead of I assume might have been a water park since it saved them about $40, went to the Farmer's Market for produce that cut down their $160/week grocery bill. Once again $160/week, they mention they eat out the majority of the week. Chic-Fil-A at least twice a week for lunch they mentioned. When it was over they ended up only spending $105 that week. So basically they gave up weekly luxuries that over 50% of our country cannot afford. Tell me how this helps people?

1 comment:

Rachel said...

Cut out daily Starbucks and weekly mani/peds. Good tips! :)

Just kidding! kind of. A couple of years ago, I did get into the habit of going to Starbucks/Coffee Crossing/Perfection almost every day. And then I realized that I was spending my retirement. And then I went to Ethiopia and realized that I spend more on coffee product in a month than some people have to eat on all year. It kind of puts things into perspective. So, I went out and bought a coffee maker.