Key household budget statistics
Significant expenditures were housing, transportation and food.
The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Learn more about the 50/30/20 budget rule and if it's right for you.
The three P's of budgeting are Paycheck, Prioritize, and Plan. Evaluate your paycheck and other income, including bonuses, alimony, child support, tax refunds, or rebates. Prioritize spending by considering your needs, wants, and why. Plan to get the most value for every dollar earned and spent by keeping a budget.
A three-way forecast, also known as the 3 financial statements is a financial model combining three key reports into one consolidated forecast. It links your Profit & Loss (income statement), balance sheet and cashflow projections together so you can forecast your future cash position and financial health.
CBO: U.S. Federal spending and revenue components for fiscal year 2023. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.
In the United States, individual income taxes (federal, state, and local) were the primary source of tax revenue in 2022, at 45.3 percent of total tax revenue.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings.
It is recommended that you spend 30% of your monthly income on rent at maximum, and to consider all the factors involved in your budget, including additional rental costs like renters insurance or your initial security deposit.
Refuse, Reduce and Reuse.
In 2023, housing required the highest amount of consumer expenditure across all races, with Asian individuals spending the most. Additionally, Asian individuals spent more on personal insurance and pensions, as well as education than any other race.
The three biggest budget items for the average U.S. household are food, transportation, and housing. Focusing your efforts to reduce spending in these three major budget categories can make the biggest dent in your budget, grow your gap, and free up additional money for you to us to tackle debt or start investing.
Ever heard of the 30% rule? It's the idea that you should budget a minimum of 30% of your gross monthly income (i.e., your before-tax income) for housing costs, and it's practically a personal finance gospel. Rent calculators often use the 30% rule as a default assumption to determine how much house you can afford.
Most of the government's federal income tax revenue comes from the nation's top income earners. In 2021, the top 5% of earners — people with incomes $252,840 and above — collectively paid over $1.4 trillion in income taxes, or about 66% of the national total.
1. Banks (Money Center) The banking industry (money center) ranks first on our list of the most profitable industries in the United States in 2024.
The federal government funds a variety of programs and services that support the American public. The government also spends money on interest it has incurred on outstanding federal debt, including Treasury notes and bonds. In 2024 the federal government spent $6.75 trillion, with the majority spent on Social Security.
In December 2021, debt held by the public was estimated at 96.19% of GDP, and approximately 33% of this public debt was owned by foreigners (government and private). The United States has the largest external debt in the world.
Taxes provided 52 percent of state and local general revenues in 2021, including: 15 percent from property taxes. 13 percent from individual income taxes. 12 percent from general sales taxes and gross receipts taxes.
Nearly half of mandatory spending in 2022 was for Social Security and other income support programs such as the Child Tax Credit, food and nutrition assistance, and federal employee benefits (figure 3). Most of the remainder paid for the two major government health programs, Medicare and Medicaid.
The rule is that a third of your take-home income should be used towards your home, a third for living expenses, and the last third should be for savings and investments.
Three-Statement Model
The three-statement model is the most basic setup for financial modeling. As the name implies, the three statements (income statement, balance sheet, and cash flow) are all dynamically linked with formulas in Excel.
What is top-down budgeting? Top-down budgeting is when senior management prescribes a budget for the entire organization. Each department then has to allocate that amount for their own needs. But they're restricted by the number that senior management gives them.