People who want to invest in the stock market say they are very interested to start trading. Problem is they don’t have the money to invest in the stock market. Too often, after receiving their pay and settling their bills, there is hardly anything left for savings and investment. This can be addressed, but first, let’s take a look at how Americans spend their earnings.
It is interesting to note that comfort and image eat up a lot of an American’s paycheck. On the average, transportation, food, entertainment and apparel cost more than what an average person spends for everything else. Rent or mortgage is also high up in the list of expenses. For example, if the average pay is $69,000, the cash allotted for housing is almost $18,500 per year. The only reassuring thought about this is that homes are an investment. After paying the mortgage for so many number of years, the property ends up as yours and you can choose to sell it or rent it out and make it as a source of income.
The problem with paying mortgage, a car as well as clothes and shoes to look good at the office every day is that savings and health often take a back seat. If there’s nowhere else to cut, then food is also sacrificed little by little. This forces consumers to try to look for alternative means of income, or to take second and even third jobs in order to meet their target income.
We’ve prepared an infographic showing how the average U.S. consumer spends their paycheck. If you want to be in control of your finances and start investing and earning from stock trading, take a look at how you can improve on these different areas of spending.