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Needs vs. Wants: Where's Your Money Going?
July 29, 2016
The most recent Bureau of Labor Statistics report (April 2016) shows incomes on average rose 6.6%, but several expense categories had annual double-digit increases. No wonder it's hard to make ends meet!
Some good news despite expense increases
Expense categories with annual double-digit increases are:
- Apparel – 12.6%.
- Vehicle purchase – 11%.
- Health insurance – 18.6%.
- Education – 19.2%.
In addition, the latest CareerBuilder survey showed that 40% of workers are living paycheck to paycheck. And, we're all too familiar with the higher healthcare costs and low interest rates on savings.
Still, many positives came out of that news. For example, 67% contribute to their employer retirement plan, and 72% surveyed said they are more fiscally responsible now. The vast majority said they cut back on leisure activities.
But many said there are expenses they couldn't do without.
- Internet connection – 57%.
- Driving – 44%.
- Their pet – 39%.
- Cable TV – 29%.
- Mobile phone – 24%.
Prioritize your spending to make the most of your income
Sitting down and determining what your big priorities are can help you decide where to shift your financial resources and not feel the monthly pinch.
Tools to help you:
- Balanced spending worksheet to minimize that inner nagging voice.
- Control your spending leaks to pay for things that matter most.
- BalanceWorksTM, a money management system from Thrivent Federal Credit Union that makes it easier to build savings and track spending.
Understanding what expenses are truly a need vs. a want can help minimize the month end pinch.
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Securities and investment advisory services are offered through Thrivent Investment Management Inc., 625 Fourth Ave. S., Minneapolis, MN 55415, a FINRA and SIPC member and a wholly owned subsidiary of Thrivent Financial. Thrivent Financial representatives are registered representatives of Thrivent Investment Management Inc. They are also licensed insurance agents/producers of Thrivent.
For additional information, visit Thrivent.com/disclosures.