The average rent for a two-bedroom apartment is $1,207.Here’s how some of the averages break down for a family of five: The square footage of your home or apartment.Obviously, these can vary widely depending on: For this example, we’re going to assume you have a family of five with two adults and three children. It’s natural to wonder what the average monthly expenses are for families and if your family’s spending lines up with what other people spend. What Are the Average Monthly Expenses for a Family of 5? If your net income is negative, you’ll need to look for ways to trim your expenses to bring your spending in line with what you earn. If you’ve got a positive net income, that’s money you can use to pay off debt or save for a new car, a family vacation or college expenses. You can figure it out by adding your total fixed and variable expenses and subtracting them from your monthly income. The final step to creating your household budget is to calculate your net income.
For example, if your family has a plan for your mobile phones that includes unlimited data and stays the same every month, you can put it in with the rest of your fixed expenses. Keep in mind that some of these expenses may belong in the fixed category. Once you’ve got your fixed expenses calculated, it’s time to look at your variable expenses. In other words, your quarterly property tax payment should be divided by three, and so on. Some utilities (For example, if you pay a monthly fee for recycling that stays the same from month to month, you should include it with your fixed expenses.)Īny fixed expense that you pay annually, semi-annually or quarterly should be divided to estimate the monthly cost.Outgoing alimony or child support payments.Fixed costs are costs that stay the same from month to month. The next step is to calculate your monthly fixed costs for your household. The goal is to predict, as precisely as possible, how much money you bring in each month. Occasional income from hobbies or part-time work.You can always adjust it if things change. We recommend averaging your monthly income for the most recent 12 months and using that figure. If you’re self-employed or your income fluctuates, you’ll need to use an estimate. Your income should include only the income that you can rely upon every month. It may help you to know that your household budget should break down into three main categories: You can’t create a budget if you don’t first understand what goes into making one. Tips to Create a Monthly Household Budget With that in mind, here are some tips to help you create a household budget and estimate average monthly expenses for a family of 5. We love working with them to help them work out a spending and saving plan that will help them pay for their current expenses and save for the future at the same time. It’s a particularly challenging thing to do when money is tight.Īt Addition Financial, one of the most common problems our members have is budgeting their money. Budgeting household expenses is a basic task, and yet it’s one that many families struggle to do properly.
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