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.
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.
According to the U.S. Bureau of Labor Statistics (BLS), the average monthly expenses for an American household in 2023 were about $6,440, which equates to about $77,280 per year.
A good monthly income in California is $5,002, based on what the Bureau of Economic Analysis estimates that Californians pay for their cost of living. A good monthly income for you will depend on what your expenses are and how much you typically spend per month.
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.
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.
Americans pay an average of $1,597 toward their debts each month — up 0.9% from $1,583 the prior year. The largest monthly payments among those with these kinds of debts are for mortgages ($2,124), auto loans ($719) and personal loans ($475).
The average monthly expenses for one person in 2022 were $3,693, up 8.5% from 2021. That translates into an increase of $287.75 per month.
Housing is by far the largest expense for Americans. Monthly housing expenses in 2023 averaged $2,120, a 5% increase from 2022. Over the course of 2023, Americans spent $25,436 on housing on average.
Generally, experts recommend spending no more than 30% of monthly pre-tax income on housing. However, it's not always that simple. According to the U.S. Census Bureau, between 2017 and 2021, over 40% of renter households (19 million) spent more than 30% of their income on rent.
Key Takeaways
The 50-30-20 budget 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 dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.
A single person household spends an average of $4,641 on monthly expenses. Married couples without kids spend an average of $7,390 on monthly expenses. A family of four spends an average of $8,450–9,817 on monthly expenses (depending on kids' ages).
The 50/30/20 rule is a popular budgeting method that splits your monthly income among three main categories: needs, wants and savings. Before slicing up your income using this budgeting framework, it's important to calculate your after-tax income.
The Standard Route is what credit companies and lenders recommend. If this is the graduate's choice, he or she will be debt free around the age of 58. It will take a total of 36 years to complete. It's a whole lot of time but it's the standard for a lot of people.
Average Monthly Payments Have Climbed in 2023. The amount U.S. consumers are paying each month toward credit cards, mortgages and auto loans is increasing, no matter their credit mix. The average monthly debt payment is $1,225 as of February 2024.
Is $5,000 a lot of debt? The answer will depend on your credit limits. If you have $10,000 in available credit across two cards, then your utilization is 50%, which is a bit high and can hurt your credit score. But if you have $20,000 in credit across three cards, you're only using 25%, which is in a healthy range.
A living wage is a socially acceptable level of income that provides adequate coverage for basic necessities such as food, shelter, child services, and healthcare. The living wage standard allows for no more than 30% of income to be spent on rent or a mortgage and is sufficiently higher than the poverty level.
As of Jan 6, 2025, the average hourly pay for a 40 Dollars An Hour in California is $23.82 an hour. While ZipRecruiter is seeing salaries as high as $49.20 and as low as $10.36, the majority of 40 Dollars An Hour salaries currently range between $15.54 (25th percentile) to $29.19 (75th percentile) in California.
It is recommended that you spend 30% of your monthly income on rent at maximum, and to consider all the factors involved in your budget, including additional rental costs like renters insurance or your initial security deposit.
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).
Ideally, you want to have 20% of your take-home pay left over after paying all of your bills. Track spending using an app or spreadsheet to determine why there isn't more money left over after bills.