This includes rent or mortgage payments, property taxes, homeowners insurance, mortgage insurance (if you can’t afford a 20% down payment), renters insurance, utilities, and maintenance and repairs. The general rule of thumb is that housing shouldn’t take up more than 30% of your gross earnings, or what you make before taxes. So in some cases, you may feel justified in spending more money on housing, especially if you have a decent job that pays well. You should feel safe, comfortable, and happy where you live. If you overspend on your first apartment, you could fall into debt trying to make monthly payments, setting you back years financially.Īt the same time, housing is important. And eventually, you might even wind up buying a house. After that, you may buy a condo or apartment. Ideally, there should be a progression where your first apartment sets you up to move to a nicer apartment. It’s important to be selective about where you live if you want to keep your costs down. It’s a basic necessity and chances are it’s your highest monthly cost. Unless you have the luxury of living in an inherited home or with your parents, you have to pay for housing. Let’s take a closer look at these top spending categories. Transportation is the average person’s next highest expense at an average monthly cost of around $800 (roughly 15% of the average household income). Annually, that amounts to about $61,000.īy far, housing is the most expensive cost for most people, with an average cost of around $1,647 a month (around 32% of a typical family’s income). Bureau of Labor Statistics (BLS), the average American household spends about $5,100 each month. In This Article How Much an Average American SpendsĪccording to a recent Consumer Expenditure Survey from the U.S. We’ll also examine the most significant factors contributing to your monthly spending amount. This article explores the average monthly expenses for a single person. What you can do is compare your monthly expenses with that of the average American, which can help you understand where your money is going and if you’re on track. Your location, lifestyle, job, and family size have a profound impact on your monthly expenses.Īs such, it can be challenging to see how you stack up against others-especially when it comes to monthly budgeting. Everybody has a unique financial situation.
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