03/01/2025
How We Spend Money
America’s Spending graphic from the Bureau of Labor and Statistics. Housing: 39%, Transportation: 17%, Food 12.9%, Personal Insurance & Pensions 12.4%, Healthcare 8%, Entertainment 4.7%, Other Expenditures 4.2%, Cash Contributions 3.1%, Apparel & Services 2.6%, Education 2.1%.
The average American spends $77,000 annually, with just over 80% going toward the top five major expenses. Housing is appropriately placed where people put the most amount of money because it is the most important to their lives.
Anyone can cut expenses at the bottom. No one should cut their top expenses without the help of a trusted advisor.