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John Mills
Happy New Year! January is a great time to review our budgets and make financial changes.
Within the first few moments of birth, we are measured and weighed. This begins a life full of ways to be measured and graded. Job interviews, grades, tryouts, and credit scores are some ways we are measured and valued. Most of these measurements are from external sources.
At a recent conference, I learned that only 10% of Americans make a budget and stick to it.
People have difficulty sticking to a budget because they don’t know what a healthy budget looks like. Some people think they have made a budget if they list their expenses. Not so fast. Once you have completed the list of expenditures, could you give it a haircut? The concept of a budget should be intertwined with the goals. Knowing how you waste your money only makes you an informed, broke person. Your budget should be a goal you need to try and meet.
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Every household worldwide has different needs and expenses, but may we offer a measuring stick to compare your budget?
The Bureau of Labor Statistics compiled the following data. Compare yourself to these numbers.
Housing is, on average, 33% of the budget. That should come as no surprise as lenders are unwilling to lend much more than this. Food consumes 12.8% of the average budget. Most people spend too much on food. There are so many guilty pleasures that can be avoided, consider that a PB&J sandwich costs around 25 cents. Transportation takes 17% of the American budget. Americans love their cars and the control and freedom they provide, but it comes at a cost.
Medical costs comprise 5.9% of the average budget. This sounds low, but the Bureau of Labor Statistics did their homework. Medical costs can vary significantly depending on age. People can’t always control their health costs. Accidents happen, and diseases can strike randomly, but we can control our eating and exercise habits.
Clothing comes in at 3.6%, entertainment at 5.6%, and education is 2.1%.
So, how do you measure up? Did you find any surprises?
Remember that these are the averages and not necessarily worthy goals. It would be great if these costs could be reduced from the national spending average. A worthy goal would be to be as far below the averages as possible. Why? So you can save the surplus. The Bureau of Labor Statistics also stated that most money set aside for the future is in the form of a forced social security tax.
People who want to retire successfully should save at least 10% of their income. In our experience, people who retire early didn’t arrive at that point by accident. They methodically planned and were disciplined enough to stick to a budget.
Pay yourself first by making your savings automated.
PHOTOS: Mike Grgich — A life in pictures
Both Miljenko “Mike” Grgich and his grapes got a blessing from Father Gordon Kalil at the 39th blessing of the grapes at Grgich Hills Estate Winery on Aug. 21, 2015. At left is Grgich winemaker Ivo Jeramaz and, center, Violet Grgich.
Winemaker Mike Grgich celebrated his 90th birthday with friends and family Monday at Rutherford’s Grgich Hills Winery. During the celebration, attended by some 40 guests, Grgich presented two of his greatest achievements: his daughter Violet, left, and a bottle of 1972 Chateau Montelena Chardonnay. Grgich, of course, was the winemaker for Calistoga’s Chateau Montelena when the 1973 chardonnay won the famed “Judgment of Paris.” Grgich shared two bottles of the rare chardonnay with his guests, alongside stories and anecdotes from his long life.
THURSDAY – MAY 30, 2013 – ST. HELENA, CA – Mike Grgich of Grgich Hills Estate is all smiles at the Napa Valley Barrel Auction at Raymond Vineyards in St. Helena.
Mike Grgich and Zelma Long toast each other at the Continuum celebration in 2013. Grgich and Long, who worked at Robert Mondavi Winery in its early days, came to Continuum to wish good luck to Mondavi’s children and grandchildren in their new endeavor.
Miljenko “Mike” Grgich talks about the work of nonprofit organization Roots of Peace, which removes land mines in countries besieged by conflict and replaces the explosives with vines. He is joined by Diane Baker, right, an actress and board member of Roots of Peace, and Kyleigh Kuhn, the daughter of founder Heidi Kuhn. In the foreground is a white rose planted on May 24, 2014 next to the fountain of peace at Grgich Hills Estate as part of an event, “Day of Peace,” during which the winery donated 5 percent of sales on the day to the nonprofit organization. The day also marked the 38th anniversary of the Judgment of Paris and the winery released a commemorative chardonnay.
Miljenko “Mike” Grgich holds a plaque he received from the Croatian Scholarship Fund for supporting students in Croatia for 25 years, and for establishing an endowment fund, in 2014. From left to right behind him are Sveto Olujic, Nina Jurjevic, Maria Olujic and Branko Barbier. Standing with Grgich is Marijana Pavic, president of the fund.
Miljenko “Mike” Grgich leads guests through the Legacy Room at Grgich Hills Estate Winery in 2015. Here he has collected keepsakes and records of his storied career as a winemaker, including the clippings from the Great Chicago Showdown on 1980 which earned him the nickname, “The King of Chardonnay.”
Miljenko “Mike” Grgich, left, and daughter Violet Grgich sing “You Are My Sunshine” to one another during the Grgich Hills Estate Blessing of the Grapes on Aug. 21, 2015. In the background is Austin Hills, center, co-owner of the winery, and Colin Shipman, Violet’s husband.
Miljenko “Mike” Grgich shares a laugh with a guest after the Blessing of the Grapes ceremony on Aug. 21, 2015. Guests lined up to shake his hand and say hello before they enjoyed small bites and Grgich Hills Estate wines.
Violet Grgich, left, Miljenko “Mike” Grgich, center, and Ivo Grgich pose for a photo during a special dinner held for Mike Grgich at La Quinta Resort in 2016.
Miljenko “Mike” Grgich holds his book “A Glass Full of Miracles” in April of 2016.
Congressman Mike Thompson, left, and Austin Hills, center, listen as Miljenko “Mike” Grgich talks about how proud he is to receive the American Dream Award from Thompson during a brief ceremony at Grgich Hills Estate Winery on July 29, 2017.
U.S. Rep. Mike Thompson presented Miljenko “Mike” Grgich with his American Dream Award on July 29, 2017, as Grgich Hills winery celebrated its 40th anniversary. Thompson said he created the award to honor immigrants after recent anti-immigrant rhetoric in the U.S. has made him “spitting mad.” Standing, from left, Thompson, Austin Hills, Violet Grgich. Seated is Mike Grgich, who came to the U.S. from communist Croatia and who sang his favorite song, “You Are My Sunshine” for the guests at the celebration and urged them to vote for Thompson. “And I am a Republican,” Grgich noted.
Winemaker Mike Grgich greets spectators Oct. 6, 2013, as grand marshal of the 36th annual Yountville Days Parade.
Miljenko “Mike” Grgich, 93, took to the dance floor on in July 2016 during the Croatian Extravaganza, an annual wine club event held by Grgich Hills Estates. Dancing with him is Maria Reyes.
Miljenko “Mike” Grgich, right, and his daughter Violet Grgich in an undated photo.
Violet Grgich and Mike Grgich join Allen Balik in the Ranch House in 2023.
Mike Grgich, the winemaker behind Chateau Montelena and later Grgich Hills Estate, has died at age 100.
Thousands of spectators lined the streets of downtown Napa on Saturday night to watch the city’s annual Christmas Parade.
John Mills is a registered investment advisers and certified financial planner. Reach him at 707-254-0155 or MillsWealth.com. Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Strategic Wealth Advisors Group (SWAG), a registered investment adviser.
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