Here’s What a Realistic Budget Looks Like for Someone in Their 20s

Sourced from https://www.thesimpledollar.com/financial-wellness/realistic-budget-for-people-in-their-20s

CNBC’s Emma Martin recently shared an article detailing the ins and outs of a very affluent 25-year-old’s budget. The 25-year-old profiled in the article was extremely lucky, earning a six-figure income, excellent credit and little debt. The article did a great job of breaking down his financial situation. However, it received plenty of backlash on Twitter from users who pointed out some unrealistic aspects of this budget.

Here’s what the finances of people in their 20s actually look like on average.

According to a 2019 CNBC income survey, the average 20- to 24-year-old makes $30,628 annually, while the average 25- to 34-year-old makes $43,524 annually. Averaging the two gives $37,076, a healthy starting point. That equates to about $3,000 in gross income a month before taxes.

Roughly $6,000 of that total income will be devoured by income taxes, FICA taxes, state taxes and local taxes. Thus, the net monthly income for a typical person in their 20s is … Read More

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