How Much Does Life Cost?
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When I was estimating how much the RV life would cost, I realized that I take no thought whether it would be cheaper or more expensive for the boilerplate American. I didn't know how much life actually costs for the boilerplate American. So, like any crawly blogger, I went into research mode to find out: How much does life cost for the average American?
How Much Does Life Cost?
After researching all of the different things that people need to survive, I've determined that life costs nigh $44,100/yr. Keep in heed that this number is an average for the entire The states – some places will be cheaper, and some places will be more far more expensive. Prices volition also vary based on household size. Only people need the same basic necessities no affair where they live – food, shelter, utilities, amusement, transportation, and insurance are all necessities for modern living, and so how much do each of those things cost us?
How Much Does it Cost for the Average Person to Live?
Bones Living Expenses
Let's start figuring how much life costs by figuring out how much basic living expenses cost. Those basics are food and shelter considering those are the two things you can't alive without in the almost technical sense. Utilities are besides included equally a basic living expense considering they are a big part of having shelter.
How Much Does Housing Cost?
The biggest expense for most people is housing. According to CBS News, the national boilerplate rent in 2022 was $1405 per month. That means, on average, Americans are spending nigh $17000 per year for shelter solitary. And that was concluding year – rents take connected to increase in 2019. We all know that averages can exist skewed, then I also looked at the median. Unfortunately, the story when you look at the median is only slightly better. According to the annual hire study, the median monthly rent for a 2-chamber apartment is $1255/month– simply slightly below the average.
If yous chose to buy a house, you would be paying slightly less. The average price of a mortgage is $1022 per year. Only, to get a mortgage, y'all need a pretty hefty sum saved up for a down payment, and you lot demand to take practiced credit. Since home ownership is out of reach for many Americans, I based my calculations on the boilerplate cost of hire.
Annual Cost: $16860
How Much Do Utilities Cost?
If yous aren't lucky enough to score a housing situation with utilities included, those are going to be the next most important thing on your list. Electricity, gas, sewage, water, and trash pick upward all have costs associated with them. Many renters volition have at least some of these (usually sewer and trash) included in the hire, but homeowners are responsible for all of them.
The yearly price of utilities for the boilerplate American is $3900, which excludes the yearly price of cablevision and cyberspace. I didn't include those because they aren't essential living expenses. They are included in the full calculations for how much life costs below, though – considering near people have them.
Annual Cost: $3900
How Much Does Insurance Cost?
The final toll under the housing umbrella is insurance. If y'all own your home, information technology is a must. Yet, insurance to protect your personal belongings is likewise extremely important if you are a renter. Some landlords won't fifty-fifty let you hire if y'all don't have a policy!
On average, homeowner's insurance costs about $1083 per year, and the average cost of renters insurance is significantly lower at $187 per year. I couldn't discover whatsoever hard data on what the average American actually pays to protect their belongings that weren't split between these lines, so I will merely average them myself for a total cost – which is probably widely inaccurate. But hey, this is simply an estimated boilerplate, and I've got to use what I have.
Annual Toll: $635
How Much Does Food Toll?
You have to eat to stay alive, right? And food isn't necessarily cheap. Certain, y'all tin do extensive meal planning or live on rice and beans, but the average American doesn't practice that. According to the Department of Labor, Americans spent an average of $7923 on food in 2018. This figure includes both dining out and cooking at domicile.
I also like to include the cost of personal intendance items in with the cost of nutrient – because yous are generally buying both at the grocery store. The aforementioned Department of Labor study showed that Americans spend an average of $768 on personal care items, which brings the total cost to $8691.
Annual Cost: $8691
What is the Cost of Living?
As y'all tin meet, the average cost for living expenses is $30086 per year. That'southward simply for basic survival!
We all know that those aren't the but things we take to pay for. When figuring out how much life costs, we have to determine how much everything else costs too.
How Much Does the Residuum of Life Price?
The average American likewise has a car, internet, cablevision, and also likes to have fun every now and and then. They likewise have to pay for miscellaneous items that pop upwardly and maintenance for either their cars or homes (or selves) over the course of the year. So how much do these other things cost?
How Much Does Transportation Price?
Transportation costs are becoming more and more of a necessity. Unless you live within walking distance of your job and a grocery store, you will probably be paying for transportation in one way or another.
Car
For the sake of computing how much life costs, I'g going to presume that the boilerplate American has a motorcar. I know that a ton of people rely on public transportation, and those costs are generally lower, only over again, I'm not doing a scientific study here. Nosotros are working with generalities and averages.
Co-ordinate to Lending Tree, the boilerplate American tin can await to pay around $554 per month for a new car and $391 per calendar month for a used car. I couldn't discover any information on the combined average, so I'chiliad just going to average those 2 numbers and assume that the boilerplate price overall is the average of those 2. That means that, on average, Americans are spending $472 per month on their auto loans, which is $5670 per year. That doesn't even accept into business relationship the true cost of ownership!
Annual Cost: $5670
Gas
The toll of gas varies and then widely by state that it's hard to become a practiced approximate for the boilerplate American. This map by Business Insider has a pretty good breakdown state by land, and it appears as though the average is close to $1000 per year, so we will utilize that number. Conspicuously, this isn't the near scientific manner to practise things, only it does give y'all an idea of what the boilerplate American spends.
Annual Toll: $1000
Insurance
The price of machine insurance also varies widely by state (and by driving record, historic period, etc.). Nonetheless, according to Nerd Wallet, the average yearly cost of car insurance is $1621.
Almanac Cost: $1621
Maintenance/Miscellaneous
Anybody who has a machine knows that problems will arise every twelvemonth, even if you lot exercise become the oil inverse regularly. Tires get flat, restriction lights become out, and interiors get muddy. And information technology'south e'er going to need a major repair or tune-up at the most inconvenient time.
On average, these repairs and miscellaneous expenses cost motorcar owners $408 per yr.
Annual Cost: $408
Entertainment
The last major toll of life is entertainment. Most Americans spend at to the lowest degree a petty chip of coin doing something fun, whether it be cable, net, or going out and doing things. I'm including this because I don't think life is worthwhile if yous aren't enjoying it at least a little flake, and unfortunately, near ways to relish life cost money.
Cable & Cyberspace
We are going to use the utility chart above to go the boilerplate costs of cable and internet. Co-ordinate to that, Americans spend $1200 per yr on cablevision and $564 per year on cyberspace. I ditched my cable a long time ago and oasis't looked back, but the boilerplate American still has it, so nosotros will add those up to get the full yearly cost.
Annual Cost: $1764
Streaming Services
Cable is going away in favor of streaming services, but many Americans nonetheless employ both. Co-ordinate to Forbes, the boilerplate American pays $29 per month for streaming services, which is $348 per year.
Annual Toll: $348
Miscellaneous Entertainment
What'due south the point of living if you aren't going to have some fun, right? The average American spends about $3203 per year on having fun. This includes things like going to the movies, going to confined and clubs, and even paying to get into theme parks, state parks, and things like that.
Annual Cost: $3203
Life Is Expensive
So yes, life costs almost $45000 per year, which doesn't even include taxes, health insurance, life insurance, or child care. It as well doesn't give a lot of wiggle room for actually enjoying life – three k dollars seems like a lot, merely that'southward but sixty dollars a calendar week. That ways yous might exist able to become out to a movie one time a week, or save upward and go to a theme park once a month, or vacation twice a year. Non very heady, is it?
Also, because this is a breakup of what things cost, it doesn't include any savings! Nosotros all know that fiscal emergencies happen and that we should take an emergency fund ready to handle these. We too know that we should be saving and investing to achieve our financial goals. Life gets even more expensive after yous include all the "extras" that aren't the blank bones of living.
This is why I dearest the idea of Passion Burn. If life is going to be expensive regardless of what I practice, I may as well enjoy information technology, right?
Source: https://partnersinfire.com/finance/how-much-does-life-cost/
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