The sample budget for someone aged 55-65 would be:
Income:
- Salary: $120,000
- Pension: $30,000
- Social Security: $20,000
- Investment income: $10,000
Total income: $180,000
What goes into the budget ?
Some of the expenses that will go into the budget are:
- Housing: This is a significant expense, and the amount will vary depending on location and housing type.
- Transportation: The cost of transportation will depend on car ownership, public transportation availability, and lifestyle.
- Food: Groceries and dining out expenses should be considered.
- Healthcare: Healthcare costs increase with age, and this includes insurance premiums and out-of-pocket expenses.
- Debt payments: Existing debt should be prioritized for repayment.
The expenses portion would therefore be:
- Housing: $2,500 (mortgage/rent, utilities, property taxes)
- Transportation: $500 (car payment/maintenance, public transportation)
- Food: $1,000
- Healthcare: $1,500 (insurance premiums, out-of-pocket expenses)
- Debt payments: $1,000 (student loans, credit cards, etc.)
- Personal care: $300 (clothing, haircuts, etc.)
- Entertainment: $500 (dining out, hobbies, travel)
- Savings/Investments: $30,000
- Taxes: $20,000 (federal, state, local)
- Total expenses: $142,300
Surplus: $37,700