Americans spend most of their money on these 3 things

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Americans spend most of their money on these 3 things
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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.

Read more: 40 things you can do today to take control of your money

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.

Read more: Follow these 2 steps to start saving more money today

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!

Housing:

Transportation:

Food:

How to increase your income by reducing expenses

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Alex Thomas Sadler About the author:
Alex is the Managing Editor of Clark.com and host of Common Cents, a series that makes money simple. By breaking down complicated concepts, Alex shows you how to better understand your money and make smarter decisions — so you can take control of your own life and future! Learn more here.
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