BLS Consumer Statistics: What Do They Tell Us?

I stumbled across some Bureau of Labor Statistics (BLS) numbers the other day, outlining the average amount American household's spending on everything from clothing, to transportation, food, and housing. This is a treasure trove of data for a personal finance nerd like me. As I dug into the statistics though, I found myself getting a little discouraged by the whole thing. Somewhat surprisingly, it looks like the average "Consumer Unit" (what the BLS calls various groups of people living together) is making pretty good money: nearly $66k before taxes. But, unsurprisingly, we Americans are spending almost all of our income. Let's dig into the numbers:

Anchoring My Expectations

Anchoring?

Our time in Hawaii had to come to an end sometime, so yesterday we stepped onto a 767 and woke up back in Arizona. We snorkeled in a sea of fish, hiked on lava rock paths, saw waterfalls and petroglyphs and even an active volcano, and we ate way, way too much. I won't go into all the nitty gritty details of our trip, but if you find yourself hungry in Kona, I highly recommend visiting Broke Da Mouth Grindz (try the Garlic Furikake Chicken...just $9 and enough to feed two people) and Da Poke Shack (and try anything, because all the raw fish is delicious).

Now that I'm back, the next big thing coming down the road is my annual review. This will be my first performance review with my new employer, and I'm not entirely sure what to expect. Normally I would let my mind run wild, day-dreaming of raises and fancy promotions. But after hearing about a friend's recent experience, I am taking a different tactic and throwing an anchor on my expectations. Let me explain:

Limit Your Options, Expand Your Wallet

Hi there, Done by Forty readers. My wife and I are still in Hawaii and loving it. Though, sadly, our time here is coming to a close this weekend. On the plus side, that means I'll have time to read the posts you've written while we were away. 

Today, we have a cool guest post from The FIREStarter. He's a UK blogger who writes about reaching Financial Independence & Early Retirement on that side of the pond. Today, his post is on the pitfalls of having too many options, and the paradox of choice.

Give Yourself Credit (Progress is PROGRESS)

Hi there, blogging buddies! Mrs. Done by Forty and I are on vacation this week, stuffing ourselves with good food and trying to work it off by hiking around this beautiful island. I'm sorry that I haven't been able to keep up with your blog posts, but I'll catch up soon! Today, we have an intriguing guest post from FI Fighter about the psychological hurdles involved with reaching an early financial independence. 

There Ain't No Rest For the Wicked

"There ain't no rest for the wicked.

Money don't grow on trees.

I got bills to pay.
I got mouths to feed.

Ain't nothing in this world for free.

No, I can't slow down.

I can't hold back,

Though you know, I wish I could.

No there ain't no rest for the wicked

Until we close our eyes for good."

-Cage the Elephant

Girls Just Want to Raise Funds

Last week, my friends and I were drinking beers and discussing a thought-provoking blog post from Emily Capito, "Nonprofit Piety Won't Change the World," as one of my friends works for a local nonprofit. The post centers on the notion that there are separate sets of economic rules for the nonprofit sector and the for-profit sector. Take one example: it's a commonly held belief that in the for-profit sector, offering good compensation to your leadership and employees well help to attract and retain talent, and ultimately lead to better results for the organization.

But try applying that logic to the non-profit sector, and people get upset that so many dollars are going toward overhead, instead of making their way to the people in need. Never mind the fact that higher compensation may draw better talent, who can raise more funds, or craft strategies that would have greater impacts for the recipients of that charity. Donors want to see those dollars going straight to those in need, not to the people working at a nonprofit.

Did Americans Really Overpay by $1B at Tax Time?

So I'm finding that watching commercials again isn't so bad, as I get to learn new things. For example, did you know that LL Cool J is hosting the Grammys this year? Which is awesome, as there's an outside chance we'll all get to see "Momma Said Knock You Out" on live television in 2014. This would be the highlight of my year. Also, I heard a statistic on a running commercial series that is so shocking that I don't want to believe it's true: H&R Block claims Americans overpaid by $1 billion in taxes last year. Apparently this is enough for a stack of five hundred dollars to be placed on every seat of every NFL stadium (one on each of 2 million seats in the thirty two professional football stadiums). Here is a video of the ad:

Should We Pay Personal Capital to Advise Us?

Late last year, we signed up for Personal Capital's free software. Their dashboard provides a quick, holistic view of all our investments, our spending, net worth, the whole shebang. And after a few days, Michelle from Personal Capital emailed me asking if we'd be interested in speaking about our portfolio. I figured there'd be no harm, so we spoke briefly about our goals and our investments. At the end of the call, she asked if we'd like to meet again, and to see a personalized recommendation from Personal Capital. It was free, so why not have a professional view our portfolio and give recommendations?

The Lottery: You Can't Win If You Don't Play

I have given up my quest to avoid advertisements, and I'm admitting defeat. After a few months of trying to avert my eyes when passing billboards, and changing channels every ten minutes in the middle of football games, I am throwing in the towel. I am one man against the thousands and millions of advertisers, and their millions and billions of advertising dollars. It was never a fair fight, so rather than continuing to aggravate myself, now I am just watching playoff football like a normal American, and watching the stupid commercials. And it's not a big deal.