How much do people spend per month on average?
The average monthly expenses for a family of four range from $7,333 to $8,595 (depending on the ages of your kids). For single folks, the average monthly expenses are $4,009. For married couples with no kids, monthly expenses are $6,337.
The average single person spends about $3,405 per month, according to recent data.
50% of your net income should go towards living expenses and essentials (Needs), 20% of your net income should go towards debt reduction and savings (Debt Reduction and Savings), and 30% of your net income should go towards discretionary spending (Wants).
| Average Daily Spending by Americans of All Ages | |
|---|---|
| Groceries | $11.95 |
| Housing (Rent/Homeownership) | $32.59 |
| Utilities | $10.51 |
| Health Insurance | $9.35 |
The average American spends $161 per month on clothes. Typical American consumers allocate 2.6% of their annual budget to shopping for new clothes. Americans between 25 and 34 years old spend the most on clothing per month ($123), while those aged between 65 and 74 years spend only $68 on average.
Whether $3000 a month is good for you depends on the number of family members you have and the quality of living you want to sustain. If you're single and don't have a family to take care of, $3000 is enough to get you through the month comfortably.
Aged 35 to 64
The 35- to 64-year-old group had, on aver- age, the highest level of total expenditures ($42,236) and spent more than the other two household groups in all major expenditure categories except for alcoholic beverages, health care, and cash contributions.
So I set out to at least get a ballpark idea for how much discretionary income the average American household gets. If you're looking for the simplest answer possible, the answer is this: $20,748. In other words, the average household has about $1,729 left over after paying the bills each month.
The average cost of living in the United States is estimated to be between $2,500 and $3,500 per month, depending on your location and lifestyle. This includes housing, food, transportation, health care, taxes, and other expenses. What are the most common miscellaneous expenses in the US?
The average annual expenditures for 2022 were broken down into 14 major components (table B). Overall, housing accounted for the largest share (33.3 percent), followed by transportation (16.8 percent), food (12.8 percent), personal insurance and pensions (12.0 percent), and healthcare (8.0 percent).
Which gender spends more on clothes?
On which products or services do females spend more than males? Females generally spend more on clothing, accessories, cosmetics, skin and hair care products, and healthcare services.
45-year-olds spend the most on clothes, then spending gradually decreases. This shows that the spending habits of people in different age groups can be used to inform marketing strategies. Knowing which age group spends the most on clothes can help retailers target their products and services to the right demographic.
Try the 50/30/20 rule as a simple budgeting framework. Allow up to 50% of your income for needs. Leave 30% of your income for wants. Commit 20% of your income to savings and debt repayment.
Living on a $1,500 a month budget is absolutely possible. Whether you're in-between jobs, starting a business, paying off debt, or simply saving money, careful budgeting will help you meet your goals. Don't be fooled, though. Living on $1,500 a month or less is an extreme goal which requires extreme measures.
Numbers on their own can seem meaningless, so you'll want to look at how much you've been spending relative to your other expenses, relative to how much you've been saving and investing, and relative to your income. The 50/30/20 rule is a general benchmark for determining whether or not you're spending too much.
Lower-income households had incomes less than $48,500; Upper-income households had incomes greater than $145,500; Middle-income households fell into a range between those two numbers.
$36,000 a year is how much an hour? If you make $36,000 a year, your hourly salary would be $17.31.
20% of Your Annual Income
Alice Rowen Hall, director of Rowen Homes, suggests that “individuals should aim to save at least 20% of their annual income by age 25.” For example, if someone is earning $60,000 per year, they should aim to have $12,000 saved by the age of 25.
From age 18-24, only 1% of earners (7% altogether) earn $100k per year or more. This makes these age groups by far the lowest earners in the US. Americans make the most income gains between 25 and 35. Only 2% of 25-year-olds make over $100k per year, but this jumps to a considerable 12% by 35.
For example, if your money is 30 days old, it's been sitting in your bank for 30 days because you haven't yet had a reason to spend it. And 30 days is an excellent age of money. It means you're a month ahead (a.k.a., living on last month's income), and it's an enviable position to be in. If a bill arrives, no problem.
What is considered wealthy at each age?
Between 35 to 44, the average net worth is $436,200, while between 45 to 54 that number increases to $833,200. Average net worth cracks the $1 million mark between 55 to 64, reaching $1,175,900. Average net worth again rises for those ages 65 to 74, to $1,217,700, before falling to $977,600 for someone over age 75.
Bottom Line. Living on $1,000 per month is a challenge. From the high costs of housing, transportation and food, plus trying to keep your bills to a minimum, it would be difficult for anyone living alone to make this work. But with some creativity, roommates and strategy, you might be able to pull it off.
14% of Americans Have $100,000 Saved for Retirement
Most Americans are not saving enough for retirement. According to the survey, only 14% of Americans have $100,000 or more saved in their retirement accounts. In fact, about 78% of Americans have $50,000 or less saved for retirement.
Paycheck to paycheck is an informal expression describing one's inability to pay for living expenses due to the loss of income or inability to budget. People living paycheck to paycheck are sometimes referred to as the working poor. Living paycheck to paycheck can occur at all different income levels.
The cheapest states to live in are Mississippi, Oklahoma, Kansas, Alabama, Georgia, Missouri, Iowa, Indiana, West Virginia, and Tennessee. Mississippi is the cheapest state to live in in the US, with a cost of living index of 85. The second cheapest state to live in is Oklahoma, with a cost of living index of 85.8.
On average, groceries cost between $250 and $550 per month for one person. However, expenses can vary depending on location, dietary choices and personal spending habits. If you don't budget for groceries and instead just buy what you need — and want — at intervals throughout the month, you could be overspending.
Mississippi. Mississippi has the lowest cost of living in the United States. With a cost of living index of 83.3, expenses are nearly 17% less than the national average. Mississippi's housing costs are the lowest in the nation.
The average household earned $87,432 in 2021 before taxes and spent $66,928, according to the BLS survey. Significant expenditures were housing, transportation and food. Slightly more than three-quarters of people's income in 2021 was devoted to living expenses.
| Type of spending | Percentage |
|---|---|
| Household bills and expenses | 52.34% |
| Clothes and accessories | 44.07% |
| Going out/entertainment | 37.49% |
| Food delivery/eating out | 36.99% |
Spend half of your take-home income on things you need, like housing, transportation and food. Reserve another 30 percent for things you want — trips, clothes and entertainment. Use the remaining 20 percent to pay down debt or to sock away into savings and retirement funds.
Which gender is more generous?
New research has found that women are more generous than men. They're more likely to be giving because their brains find it more rewarding, the study suggests.
It depends on the guy and the occasion, but in general, both styles are attractive and will turn most men on. Typically, younger guys like girls in jeans, whereas older guys favor more sophisticated outfits like a particular dress.
“Women being a bit more conscientious about saving and men a bit more frugal on spending.” It's impressive that women are able to maintain better saving habits and similar spending habits.
Out go the fashion-conscious outfits of their younger years, slowly but surely replaced by a uniform of baggy T-shirts and worn-out jeans. Now researchers have pinpointed the age at which men stop caring about their appearance – and it is 37, according to a survey of their significant others.
Not all kids will learn to dress themselves at the same time. Some 2-year-olds may be able to put their shoes on and zip up their jacket, while others may be 4 or 5 before they have fully mastered self-dressing.
Suit Jackets – The average life expectancy for a suit jacket comes in around two to three years of regular use. Denim – While worn denim may look great, stitching and hems falling out are inevitable over time. Two to three years of regular use will often wear denim out.
The most recent data from the US Bureau of Labor Statistics shows that American consumers spend the most money on housing. In 2021, the average US consumer spent $22,624 on housing, which made up one-third (33.8%) of their total annual expenditure.
Spending money on food is nonnegotiable; we have to eat. And you've likely gotten more used to buying groceries and eating at home since the pandemic struck. On average, groceries cost between $250 and $550 per month for one person.
A new money rule: 70-20-10
That's why we really like the idea of a 70-20-10 rule for your money. Applying around 70% of your take-home pay to needs, letting around 20% go to wants, and aiming to save only 10% are simply more realistic goals to shoot for right now.
Average Household Budget: How Much Does the Typical American Spend? American households spend an average of $61,334 per year, or $5,111 per month — 82% of our after-tax income. Most households have the same major expenses: housing, transportation, taxes and food make up 78% of our budgets.
How much spending is too much spending?
Numbers on their own can seem meaningless, so you'll want to look at how much you've been spending relative to your other expenses, relative to how much you've been saving and investing, and relative to your income. The 50/30/20 rule is a general benchmark for determining whether or not you're spending too much.
The average annual expenditures for 2022 were broken down into 14 major components (table B). Overall, housing accounted for the largest share (33.3 percent), followed by transportation (16.8 percent), food (12.8 percent), personal insurance and pensions (12.0 percent), and healthcare (8.0 percent).
| Rank | State | Average monthly cost of groceries per person |
|---|---|---|
| 19 | California | $370.96 |
| 20 | Florida | $364.25 |
| 21 | Iowa | $347.05 |
| 22 | Oklahoma | $346.37 |
Average grocery bill for 1 person
If you're a single adult, depending on your age and sex (the USDA estimates are higher for men and lower for both women and men 71 and older), look to spend between $229 and $419 each month on groceries.
Key Takeaways. The rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must-have or must-do. The remaining half should be split up between 20% savings and debt repayment and 30% to everything else that you might want.
We recommend the popular 50/30/20 budget to maximize your money. In it, you spend roughly 50% of your after-tax dollars on necessities, no more than 30% on wants, and at least 20% on savings and debt repayment.
Some experts suggest the magic number is 10% of your monthly income, after taxes. I think the right amount should be somewhere in the range of 5-10% per month. Under this fun money umbrella are trips to the bar, the movies, weekend road trips, spa days, etc.
It is often referenced by David Ramsey. This popular budgeting technique suggests you put 50% of your income towards your needs, (necessary expenses) 30% towards your wants, and the remaining 20% towards your savings.
Spend half of your take-home income on things you need, like housing, transportation and food. Reserve another 30 percent for things you want — trips, clothes and entertainment. Use the remaining 20 percent to pay down debt or to sock away into savings and retirement funds.
How much does the average person spend a day? The average person spends about $164 per day, according to the Bureau of Labor Statistics. This figure includes spending on housing, food, transportation, entertainment, clothing, healthcare, and other goods and services.
How much does a middle class lifestyle cost?
| State | Single | Family of four |
|---|---|---|
| U.S. average | $26,093 – $78,280 | $52,187 – $156,560 |
| Alabama | $22,597 – $67,791 | $45,194 – $135,581 |
| Alaska | $27,502 – $82,507 | $55,005 – $165,015 |
| Arizona | $25,024 – $75,071 | $50,047 – $150,141 |