When you’re trying to save more money — for both now and down the road — there are plenty of successful strategies that can help you make it happen.
For many people, cutting out small expenses is a great way to get started, as it can help you ease into better budgeting habits, rather than trying to change things all at once.
But if you want to really get serious about saving money, like a lot of money, then you need to focus on the three areas where Americans spend most of their income: housing, transportation and food.
3 things Americans spend the most money on
According to the Bureau of Labor Statistics, the average American household spends about $56,000 a year. When you break that down into specific expenses, three main budget categories account for 62% of the entire year’s expenditures.
So out of the average $56,000 spent each year, Americans spend approximately:
- $18,400 on housing
- $9,500 on transportation
- and $7,000 on food.
That adds up to nearly $35,000 a year.
What you can do to save
If you’re having trouble finding money in the budget to save, looking at these numbers should serve as a big wake-up call that it’s time to make some changes.
Until you start living below your means, you will never be able to get ahead of your money — and the vicious cycle of living paycheck-to-paycheck will just go on and on.
So what can you do about it?
Resources to help you save on each of these three main budget categories!
- 7 ways to save on a low income
- 9 home expenses you need to budget for
- Why you should buy a house below your means
- How to save money on rent
- Mortgage Refinance Guide
- How to save on car insurance
- How to buy a car you can afford
- How to buy a used car
- Best & worst auto insurance companies
- 10 ways to stop wasting money on groceries
- 11 apps that pay you to shop for groceries
- Change where you shop