![]() Be sure that you track all of your regular or recurring monthly/quarterly expenses, irregular expenses (things that get paid for only occasionally), subscriptions, and everything else you spend money on. You can also track for a month or so and just write everything down or record it in some way what you are spending and where. Go back through your bank statements and figure out exactly what you are spending your money on. This is the most painful step, but it’s easier just to rip the bandaid off and get down to it. ![]() So let’s go through how to set up a monthly household budget and I’ll also share some free resources for budgeting templates and budgeting spreadsheets. Many times, people are afraid to face the truth on how much they are actually spending on certain things (like those latenight Taco Bell runs). How to Setup a Monthly Household Budgetīudgets can be really scary for a lot of people. So as you can see from the average household expenses, it can be easy to lose track of your expenses if you aren’t using a budgeting spreadsheet or some type of budgeting system. In 2020, the average American income was $87,864 with the median (the exact middle of all income) being at $61,937. So as you can see, housing, transportation, and food make up the bulk of the average person’s monthly household expenses at 50-70%. Utilities: 5% (this may or may not be part of the housing expenses).Let’s do a quick breakdown of the general, recommended amounts for specific categories: When it comes to the percentage of spending, the largest chunk of the pie generally goes to housing at around 30% of income. ![]() This includes paying a mortgage or rent, utilities to live in the house, and also required insurance for the house or apartment. The most common major expense for a family is housing. Again, these expenses will vary based on the family size, type of lifestyle, and where you live. The most common living expenses include things like housing, transportation, food, healthcare, child care, and other necessities. These are also known as cost-of-living expenses, things you generally need to pay for in order to live. When looking at common living expenses, you are looking at things that you pay for in everyday life. And that on SPENDING, not saving or investing either. However, according to DebtQuest, the average American household spends $5,102 monthly! That’s $61,224 per year. So as you can see, there are a lot of different factors that go into what the average monthly household expenses can be for a family. How high maintenance you are with personal care.The food you eat and how often you eat out.The amount of people living in your home.Let’s take a quick look at some of the contributing factors that will help you calculate your average monthly household expenses: This is going to vary a lot depending on many different factors. What are the Average Monthly Household Expenses? We will break these down into further categories in a minute. These can include, but are not limited to: We’ve also curated a list of free monthly budget template printables that includes spaces for income and spending categories as well as room for totals at the end of every month so that you can easily see how much money came into your house compared with how much went out!īut what should you include in this household expense list? What Household Expenses Include?Īccording to Investopedia, “household expenses represent a per-person breakdown of general living expenses.” There are several different types or categories of household expenses. We’ve put together this post that will help get you started on tracking your monthly household expenses. This way, if there is a discrepancy between what comes in and goes out, you can figure it out before it gets too big!īut the problem with creating an expense list is that there isn’t a clear-cut format for one. Monthly household expense lists are important because they help you stay on top of how much money is going out and coming in each month. ![]() You know you should be keeping track of your monthly household expenses, but you don’t know where to start. Figure out your monthly expenses with this list and gain some budgeting tips along the way.ĭo you struggle to keep track of all your monthly expenses?ĭoes it seem like there is always more month at the end of your money?
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