One way to tackle this task is to check this list of 25 common expenses, and the average amount Americans tend to spend on each item. GoBankingRates compiled this list to help us compare our own spending to the average, which might help you gain some valuable perspective. You might also find this list to be helpful when starting a conversation with your spouse.
- Rent – $12,696
- Mortgage payments – $18,792
- Gas – $2109
- Utilities – $4049
- Groceries – $4464
- Health insurance – $3405
- Restaurant meals – $3459
- Childcare – $9006
- Subscription services – $237.33
- Cell phone service – $1188
- Health and fitness – $1860
- Clothing – $1866
- Coffee – $1100
- Alcohol – $583
- Pets – $662
- Public transportation – $818
- Entertainment (fees and admission) – $766
- Vehicle maintenance and repairs – $890
- Vehicle insurance – $976
- Education – $1407
- Charitable donations – $1888
- Holiday food and decorations – $227
- Holiday gifts – $659
- Retirement account contributions – $6831
- Miscellaneous – $933
Sometimes our expenditures might vary wildly from the norm, due to a completely understandable reason. For example, a family with six children will obviously spend more on groceries or childcare. On the other hand, if you see an area in which you’re spending more than the average without good cause, you might consider comparison shopping or even a change of habits. Spending less than the average on some items, like coffee and alcohol, could even benefit you in other ways.
Once you’ve examined your budget and made the necessary changes, what will you do with the extra cash? Paying off debts or saving for retirement are two common (and excellent) choices. Let’s schedule an appointment soon, to discuss your options and make a plan for the future.
