Friday, January 07, 2005

Fictional Household in Trouble

Just playing around with Excel, creating a fictional "average" household, circa 2002 or 2003:

Yes, I probably made some errors with the numbers, but the idea was to see how easy it is for the "average household" to get itself behind the 8-ball financially.

Income data are from Census Bureau report "Income in the U.S. 2003." (There was no change in median household income between 2002 and 2003.)

Expense data are from Bureau of Labor Statistics report "Consumer Expenditures in 2002."

Expenses are average for family, 25-34 years old, with pretax earnings of between $40k and $49k.

Assuming minimum payments on average household credit-card debt of $8,000.

Not much wiggle room after all that, is there?

— Posted by Michael @ 1:04 AM


Hey buddy,
Saw your comment on my blog...looks like you have a nice site here! I put a link up on my own personal finance site, would be great if you could return the favor. Cheers!



I recently started a financial blog directory to collect all the financial/stockmarket/vc/business blogs into a single place (
I added your blog into the directory under the "Personal Finance" Section. It would be great if you can support the directory and add a link back

Anonymous Anonymous
, at 3:11 AM, January 08, 2005  

by the way, you can reach me at ravi at phatinvestor dot com

Anonymous Anonymous
, at 3:12 AM, January 08, 2005  
** Comments Closed on this Post **

Thoughts on my personal finances, goals, experiences, motivations, and accomplishments (or lack thereof).

My financial life began turning around when I took responsibility for it.
— Dave Ramsey


Start (2005-12): ~$21,900
Currently: $0
[About Our Debt Paydown]


Savings Goal: $15,000
Currently: ~$15,115
[About Our Liquid Savings Goal]