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Pareto Principle

Personal Finance Chart in a Shape of a Pareto

Time Magazine came out with a special issue in October that shows a very nice Pareto Chart on the cover. The topic is entitled “What we Spend”.

The article explaining the Pareto Chart on the cover is equally interesting. It explains an average breakdown of what Americans spend their money on. The list below is long, and I don’t exactly understand it or even made an attempt to understand it, but it is what apparently American love to buy.

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80/20 personal finance chart My main interest was the Pareto on the front cover. Enjoy.

  • Water 84 C
  • Air $19
  • Museums/libraries $2
  • Public $31
  • Sporting events $8
  • Movie theaters $4
  • Sporting $8
  • Lotteries $8
  • Pets $9
  • Amusement parks $16
  • Cable TV $29
  • School lunches $3
  • Housing at schools $9
  • Hotels $25
  • Alcohol purchased with meals $26
  • Restaurant meals $161
  • Securities commissions $13
  • Pension funds $14
  • Financial service fees $31
  • Investment advice $33
  • Insurance $94
  • Laundry/dry cleaning $3
  • Postal/delivery service $3
  • Day care/nursery schools $4
  • Lobor-organization dues $4
  • Moving/storage $5
  • Landline telephone $5
  • Funeral/burial services $7
  • Accounting/business services $10
  • Internet access $19
  • Personal-care services $34
  • Legal services $34
  • Cell-phone services $36
  • Foreign travel $43
  • Higher education $57
  • Medical laboratories $12
  • Home healthcare $30
  • Dental services $38
  • Nursing homes $51
  • Physician services $138
  • Hospitals $277
  • Natural gas $16
  • Electricity $60
  • Housing $557
  • Outdoor equipment $2
  • Tools $6
  • Dishes $6
  • Appliances $14
  • Furniture $29
  • Bicycles $2
  • Musical instruments $2
  • Pleasure boats $3
  • TVS $13
  • Computers $17
  • Children’s clothing $5
  • Shoes $21
  • Men’s clothing $35
  • Women’s clothing $59
  • Tires $8
  • Accessories/parts $10
  • Used autos $18
  • New autos $27
  • Fuel oil $8
  • Gas/other motor fuel $139
  • Seafood $5
  • Wine $9
  • Fresh fruit $10

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