Average cost of living in USA
Thus the average cost of living in US is estimated to be $12,000 to $20,000 per year, which averages around $1500 to $2000 per month (INR 1,27,214 to INR 1,69,619), without rent. Monthly expenses with rent are estimated to be $3,580 for a single person and $5,934 for a family of four.
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.
NerdWallet advocates the 50/30/20 budget. With this formula, you aim to devote 50% of your take-home pay to needs like rent and insurance, 30% to wants like vacations and entertainment, and 20% to debt repayment and savings.
The average household's monthly expenses are $6,440 ($77,280 over the entire year). That's up from $6,081 ($72,967 over the entire year) in 2022. The average annual income after taxes is $87,869, up from $83,195 in 2022. Housing is the largest average cost at $2,120 per month, making up 33% of typical spending.
The average monthly expenses for one person can vary, but the average single person spends about $3,405 per month. Housing tends to consume the highest portion of monthly income, with the average annual spending on housing at $1,885 per month per person.
According to the same 2022 BLS study, the average American's monthly expenses are $6,080, 1 which is about 77% of the average monthly income before taxes. This list of expenses covers everything from housing, health insurance and food to entertainment, personal care products and books.
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.
Averages look at foods many people commonly purchase, such as eggs, dairy, meat, bread, and produce items. For a single person, the average grocery bill can range, depending on age and gender, between $238.46 to $434.33. For a household with two people, the average grocery bill is $5,635 per year, or $469.58 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. Let's take a closer look at each category.
The average salary in 2023 for an individual worker was $65,470. Demographics like location, occupation, race, and gender significantly influence average wages.
What is the average rent in the United States? The average rent in the United States is $1,553/month. This is +0.8% higher than this time last year. The states with the largest rent increases when compared to last year include Rhode Island, Delaware, and Virginia.
To live "comfortably" as a single person in 99 of the largest U.S. metro areas, you'll need a median income of $93,933, according to a recent SmartAsset analysis.
How much should one person spend on groceries? Generally speaking, one person should aim to spend around $50-$75 per week on groceries, depending on their income, dietary needs, and preferences.
1. North Dakota. North Dakota has the lowest grocery index in the country at 94.2, which is 15.8% below the national average. This state has the lowest average costs for many basic foods including milk, orange juice, sugar and frozen meals.
Clothing and personal upkeep
The average U.S. household spends about $120 per month on clothing, and you'll probably want to include personal grooming costs as well as any dry cleaning in this budget category.
Hourly wage needed for a single adult: $57.10. Annual salary needed for a single adult to live comfortably: $118,768. Combined salaries for two working adults with two children needed: $316,243.
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.
One of the most common types of percentage-based budgets is the 50/30/20 rule. The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings.
To create a budget, you need to factor in all of your monthly expenses, such as housing, food, transportation, child and pet care. Budgeting for variable expenses, such as food, entertainment and travel can be challenging, but it can help you to average the costs for the past year.
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.