Here is a short article with diagrams and charts showing where Americans spend their money and how they have trouble saving. The article also highlights why it is so hard to save for many – https://www.marketwatch.com/story/where-does-it-all-go-heres-a-breakdown-of-how-americans-spend-their-money-2019-10-10
According to the article, “the average American earned $78,635 in 2018 and spent $61,224 of it, which means we’re spending about 80% of our income. After taxes are taken out, that percentage jumps even more. Clearly, housing is a big cost, at about 25% of income, but one category that’s been on the rise is education, up double-digits in a single year. That only makes sense, considering the total student debt load has exploded to top $1.5 trillion. Eating out and entertainment have been increasing, as well, while the cost of buying a new car has also jumped. It’s not getting any easier out there. Of course, big-city budgets tend to look a lot different than the average American’s.”
While the totals may look a little different today, the percentage spent has not changed. Americans are still having a hard time keeping their spending rates within reason and increasing their savings to what they will need in the future.
Financial Therapy with Elaine Korngold
Most therapists are trained to talk about issues such as sexual behavior or substance abuse eating, but not about financial issues and their significance. This is despite the fact that couples rank money as the top problem prior to marriage, and in the early stages of marriage. Money is one of the main reasons that couples argue or divorce. People have trouble saving and often don’t know why.
This is where I can help. My professional background and my training give me a unique perspective on how money impacts individuals and couples. Frequently, it is not the lack of money that creates stress and anxiety, but how people mismanage their finances. I can help you clarify your values around money, identify the messages you received from your family, and understand what drives your money behaviors. For couples, I integrate Financial Therapy with Gottman Method Couples Therapy to help couples communicate more constructively and develop tactical skills to foster a healthy financial partnership. For compulsive behaviors related to money, such as shopping addiction or gambling, I offer Brainspotting therapy for addiction. My website offers books and websites with additional Financial Therapy resources.
In my private practice I encourage clients to explore how their finances affect their emotional well-being through discussions about budgets, financial values, and core beliefs about money and spending. Research indicates that good financial health is important to reducing stress and increasing stability and satisfaction. With counseling, clients can begin addressing and resolving complex issues and emotions that manifest when they encounter financial stresses. Contact me to learn more about how Financial Therapy can help you.