US economy is driven by consumer spending.
New York, NY (PRWEB) August 02, 2014
Debt Consolidation USA recently shared in an article published last August 1, 2014 the top five items that should be in a budget plan of consumers. The article titled “5 Categories That Your Budget Plan Must Have” explains the importance of this list and what it can do to put together a sensible budget plan.
The article starts off by pointing out that the US economy is driven by consumer spending. It is 70% reliant on how the people are spending and the more people purchase, the better the economy will be.This outlook has lead to the penchant for big homes, luxury cars and a high rolling way of life. This has to change and the article shares that budgeting is the most sensible first step.
There is no perfect formula of how to list down a budget but the article points out the five most important pillars of creating one. The first of which is a house meaning mortgage or rental expense, home insurance, taxes and utility payments. The article shares how this expense item should need exceed a total of 35% of the total income of a consumer. Americans have fallen in love with big homes and it can be draining the budget. It is best to take residence on a property that fits the family size just right.
Transportation is next on the list which should take no more than 15% of the total budget. This can include auto loan payments, gas expense, allowance for parking and even the car’s repair and maintenance expenses. Savings should be next on the list at a minimum 10% of the budget. If the minimum cannot be met, a consumer would need to look into how other expenses can be reduced to meet the 10% savings goal.
Debt payments come next at 15% of the budget. The article shares that in case all debts have already been paid, this 15% can be the basis of credit card purchases. If the monthly budget is $2,000, the credit card payment should not be more than $300 every month. This way, the consumer can paid off the full amount every month to be able to stay away from finance charges coming from minimum payment of balance.
To read the rest of the article, click on this link: http://www.debtconsolidationusa.com/personal-finance/5-categories-budget-plan-must.html.