U.S. Spending Habits

According to the U.S. Department of Labor Consumer Expenditure Survey, the average amounts consumers spend on different categories are the following:
Savings 10%
Healthcare 6%
Entertainment 6%
Food/Beverage 15%
Transportation 20%
Housing 33%
Clothing 5%
Misc. 5%

I was surprised when I saw the savings rate at 10%. I had heard that we didn't save very much as a nation, The BEA, or Bureau of Economic Analysis is showing the savings rate of disposable income at near 3%.

Saving is a very good habit to get in to. Developing a budget first to find out how much you can save is a good first step. Looking at where you spend most of your money, and find out if there is a less expensive way to get the same items, or if it is your house, you may be able to qualify for re-financing as the stimulus bill has passed. If you get money as gifts, try to save that instead of buying the latest gadget that is on the market. The price of new technology does come down eventually, and then if you still want it, you could get it. You might find that you don't really need it after all.

Set some savings goals from the budget you created, in order to motivate you to save the money. Seeing your savings account grow, will be as rewarding as buying the new Iphone. Check out your local banks and credit unions for money market rates and CD's. You could transfer money that you saved to those investments that will provide more interest.

This is no get rich quick scheme. You will see your hard work pay off in your bank statement.