Well, here's what we do know: The average monthly expenses for an American household are about $6,440. That adds up to $77,280 per year. And these numbers come straight from the folks at the Bureau of Labor Statistics (BLS) who keep track of what Americans spend on everything from cereal to toilet paper to housing.
Here, you'll get a sense of how much an average person might spend per month so you can consider how your own budget looks. The average monthly expenses for one person can vary, but the average single person spends about $3,405 per month.
United States: In many urban areas, a monthly income of $4000 to $7000 after taxes may be considered sufficient for a comfortable lifestyle for a single person. For a family of four, this figure could range from $7000 to $12000 or more, depending on the location.
Average monthly expenses per household: $6,440
The average expenses for a single consumer unit in one month in 2023 were $6,440. Average spending for the entire year came out to $77,280. The cost of living can vary by region -- some cities are cheaper to live in and others are more expensive.
Here's a look at the five most-costly states for single workers, based on how much money residents would need to earn each year to live comfortably. Massachusetts: $116,022. Hawaii: $113,693. California: $113,651. New York: $111,738.
Outside the most expensive parts of the United States, $5,000 per month is typically enough to cover rent or mortgage payments and other lifestyle expenses if you're mindful of your budget.
For some people, $3,000 a month may be more than enough to cover their living expenses and even have some left over for savings and leisure activities. However, for others living in cities with a high cost of living, $3,000 a month may not be enough to cover basic expenses like rent, utilities, and groceries.
The top 5% of income earners make $335,891 per year. What Is a Rich Monthly Income? The amount of money you need to make each month to be rich depends on which metric you're using. If you're going by the IRS standard, then you'd need to make approximately $45,000 a month to be rich.
We recommend the 50/30/20 system, which splits your income across three major categories: 50% goes to necessities, 30% to wants and 20% to savings and debt repayment.
General living expenses for a comfortable living standard
It depends on lifestyle and personal preferences. However, to be comfortable you can expect to spend £1,500-£2,000 per month of your net income.
At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items.
Those will become part of your budget. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.
Standard financial advice says you should aim for three to six months' worth of essential expenses, kept in some combination of high-yield savings accounts and other liquid accounts.
Monthly gross income is simply the amount you earn every month before taxes and other deductions. Put another way, it's the annual amount you earn divided by 12.
Average American household expenses
According to the BLS survey, the largest expenditures were housing and transportation, which comprised 32.9 percent and 17 percent of total expenditures, respectively. Another big spending category was food, to which 12.9 percent was devoted.
Rich (or wealthy) people tend to have lots of free cash—and/or borrowing power—which they can spend on more goods and services. They can pay their bills easily, afford health care without worry, and often depend on a financially secure future. Their affluence can have different origins, of course.
Turns out that most successful people were born in October, with June and July not far behind. Indeed, celebs bringing in the big bucks like Bill Gates and Kim Kardashian have October birthdays, while Kanye West celebrates in June and Jennifer Lopez in July.
Getting by on $1,000 a month may not be easy, but it is possible to live well even on a small amount of money. Try these tactics. Surviving on $1,000 a month requires careful budgeting, prioritizing essential expenses, and finding ways to save money.
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
While this figure can vary based on factors such as location, family size, and lifestyle preferences, a common range for a good monthly salary is between $6,000 and $8,333 for individuals.
A good rule of thumb is to have 3-6 months of living expenses saved before moving out, which typically ranges from $3,000 to $10,000 depending on your location and lifestyle. This amount should cover your security deposit, first month's rent, moving costs, basic furniture, and provide an emergency fund buffer.
Live a Wonderful Retirement on $8,000 Per Month
When you manage your budget well, you can easily navigate your finances in retirement on $8,000 per month, even in cities with above-average costs.