A Kansas couple took to the web to report their struggle’s to make ends meet, despite an annual income of around $500k per year. According to Business Insider, a household in Kansas with annual revenue greater than $351,497 is considered to be in the top 1% of earners in the state. How is this couple one step away from financial disaster with an annual income of $500k?

Couples Budget: 

Expenses well above the national average:  

  • $3000 / month on flights or travel (11.7%)
  • $3000 / month on food (11%)
  • $12,645 / month on mortgage and Property Taxes (49%)
  • $400 / month on party supplies (1.5%)
  • $2000 / month on clothes (7.8%)

The expenses on the list above contribute to 81% of their total monthly expenses. Let’s compare each expense above to the national average:

  • 5-10% of monthly budget on travel ($1,200 / year national average)
  • 6-8% of monthly budget on Food ($250 / month national average)
  • 5-10% of monthly budget on travel ($1,200 / year national average)
  • 5% of monthly budget on clothes and apparel (110.75 / month national average)
  • Under 28% on mortgage and property
  • Party supplies are unique to this budget

The national average for the expenses above totals 55% - 61%. This means that they are about 20%, or $4,000, over budget in the expenses that are much greater than the national average.

50/20/30 Budget Rule

We recommend the 50/20/30 budget rule to help you establish a base budget for your needs, wants, and savings. This rule was shared by Senator Elizabeth Warren in her book “All Your Worth: The Ultimate Lifetime Money Plan.”

  1. Establish your after-tax income.
  2. Multiply your after-tax income by 50% for an estimated budget based on your needs.
  3. Multiply your after-tax income by 30% for an estimated budget based on your wants.
  4. Multiply your after-tax income by 20% for an estimated savings goal.

Cost of Living in Kansas & Missouri

The cost of living in Kansas & Missouri is relatively low compared to the other 48 states.

  • Kansas has the 7th lowest cost of living with a Cost of Living Index of 89.0 (based on housing, food, childcare, education costs, transportation costs, and medical costs).
  • Missouri has the 4th lowest cost of living with a Cost of Living Index of 87.1, ranking behind Oklahoma, Arkansas, and Mississippi.

If you find yourself wondering what life after bankruptcy would be like without all the debt hanging over your head, call Castle Law Office at 816-842-6200 to speak with an attorney. We understand that every bankruptcy case is different, and we will work hard to help you put together a plan that will help you get back on your feet and one step closer to a debt-free life.

Jason C. Amerine
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President and Owner, Castle Law Office of Kansas City
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