The Rachel Cruze Show - How Do Your Monthly Expenses Compare to the Average American’s?

Starting point is 00:00:01 Well, hey, you guys. So I recently saw an article that laid out monthly spending trends for the average American. And the data comes up from the Bureau of Labor Statistics. And it's really interesting to kind of get a peek behind everyone's budget. And since you guys find it so helpful to realistically compare your financial progress, I figure today, let's unpack that data together and just see where we all stand. And at the end, I'll share three ways to create a positive impact in your monthly budget, because I think that's also really important. And make sure to subscribe and share this episode with a friend. All right, let's get started. Okay, first, I want to clarify that when it comes to your money, you have to know where you are in order to know where you're going. And also, remember, that comparison is the thief of joy. And so as we're going through these numbers, I want you to have context of where you are in your financial journey because it's going to help you be able to be like, okay, you know,

Starting point is 00:00:58 is this kind of feel on average? And then also, these are not, this isn't you, right? This is the average American, so remember that, but don't compare how someone else is doing to you from a deeper sense, right? Because your financial journey is so personal. And I always talk about, you know, put the blinders on, run your own race. And I think that's really important. So again, always remember this balance of, you know, seeing other people's numbers and thinking, okay, that's kind of where we line up. I think that's good. But don't get so bogged down and feel like, oh my gosh, you know, we're doing terrible or whatever it may be, right? So there's a balance here. But it's always good to feel like, you're never alone because you're not. We're all on this journey together. All right, so let's look at the average Americans spending habits. And then I will kind of react and give you my thoughts as we go along. So as a baseline for context, remember, the average annual salary nationwide is about $59,000. So $60,000 on average. All right, let's break down these numbers. The average spent on housing was $2,120. And that feels about right, especially if you have a mortgage in there, rent has gone up. So in my head, yeah, usually around that like 1,800 to 2,000-ish mark, on average, feels about right. It's kind of what I hear from the Ramsey show when we have color. So, yeah, that feels about right.

Starting point is 00:02:19 average spent on food $832. So this one's interesting because this food category doesn't break out groceries and restaurants. So it's like all together. And I'm going to say as a family five that it was a little low. I was like, okay, okay. The cruises would probably tighten up on that line item a little bit on our end. All right, the average amount spent on transportation $1,098. So transportation usually includes gas.

Starting point is 00:02:49 For some people, that's also insurance, kind of upkeep for your car. But per month, $1,000, which I always think gas, so it feels like, that feels high. But then if you add in all those other repairs and insurance, then it's probably right on. And auto insurance is one of those expenses that was on the rise. The last two years has gotten very expensive. All right. Next, the average amount spent on health care, $513. And this is an interesting one because,

Starting point is 00:03:19 when it comes to medical expenses, this is one sinking fund that I always recommend for people because, yes, hopefully you have insurance, but even with insurance, you're going to pay some out of pockets. And you may not have all your insurances. Like, we don't have dental or vision for our family, so we do pay out of pocket for those, which can get really expensive. So when you average it out, that, yeah, that feels about right. All right, the average amount spent on personal insurance and pensions. So I'm assuming this is like your health insurance, maybe life insurance. I don't know how many insurances were included here. But then also your pension, if you have one, that's taken out of your paycheck. So that's going to be $796 per month. I don't know why. Yeah, it feels high. I feel like

Starting point is 00:04:03 some of these usually get taken out of your paycheck before it hits your account. So when you go back and look at your pay stub, that and sometimes taxes, you're like, oh, wow, that's how much we spent. It's usually more than what it feels like because you don't always see it. The average spend, on entertainment, $303. Feels right. The average spent on reading. Oh my gosh. Hello, fellow book lovers.

Starting point is 00:04:24 This was an actual line item. Thank you. Bureau of Labor Statistics. Was $10, the average amount spent. Okay, and I will just say from my vantage point, if you're getting just a paperback book, you can get one for like $9 to $13, $14. So someone's reading once a month.

Starting point is 00:04:42 On average, that feels right. The average spent on miscellaneous. $110 on average. Now, miscellaneous is a category I do tell you to have in the budget as well

Starting point is 00:04:53 because there's going to be catch-alls of things that you don't plan for that do come up, that you need to put somewhere in your budget to stay on track with that zero-based

Starting point is 00:05:00 idea with your income minus all of your expenses equals zero. And if something comes up and you don't have a category for it, you're like, well, what do we do? That's where the miscellaneous

Starting point is 00:05:08 category comes in. And it does feel a little low, $100. I feel like stuff comes up a lot for us, but I guess it's how detailed your budget is. All right, the average amount spent on apparel and services, $170. Yeah, that feels right too.

Starting point is 00:05:26 It's good. Okay, so I have some more thoughts and three tips I want to give you. But first, I do want to tell you about one of our sponsors, delete me. So I saw a headline recently that really caught my attention that one third of the U.S. population's background info is now public. So for 115 million of us, data breaches mean that our infrastructure, info is out there for anyone to find. So this is stuff like our names, addresses, phone numbers, and so much more. And this is why I love and use Delete Me, because they find and remove your

Starting point is 00:05:56 information from hundreds of data broker websites that will buy, sell, and trade your personal data. So take control of your online privacy with Delete Me. Individual Delete Me plans start as low as $9 a month. So sign up today at join DeleteMe.com slash Rachel for 20% off. or click the link in the description. Okay, so there's all the numbers. That's where the average American falls when it comes to all of these categories. But no matter where you fall in these averages,

Starting point is 00:06:27 what matters to me is that you have control over your monies that you can achieve your money goals. So remember these three things. Number one, if you're not liking what you're seeing, use that motivation to make a change next year. We are coming up in the new year, and this is a great time to make a change. So if you're seeing your numbers and then you're comparing them maybe and you're thinking, oh gosh,

Starting point is 00:06:48 or maybe you pulled your numbers for the first time, you know, when I told you to do that at the beginning of this video and you think, oh, wow, this is like, this is a lot of money that I'm eating out or whatever it may be. If you don't like where you're at, you can decide to make a change because if you don't, you're going to keep getting the same results. All right. Number two, remember you're the exception. Let's just say that average people, quote, unquote, out there are not being intentional with their money. When we see surveys and read data, a lot of people don't know always where their money goes. They don't know how much debt they have. They don't know how much is in retirement. I mean, a lot of people, they just don't have a lot of intentionality around their money. So if you are listening to this podcast or watching this video, you're doing something.

Starting point is 00:07:31 You're reaching out at some level to want to be smart with money. So that is a great thing. You are learning and growing, which is always where you want to be. And number three, when systems, you know, boundaries and guardrails are in place, you and your money will thrive. When you have elements in your life, whether it's tools or apps or a way of thinking or a process or a plan, you're more likely to achieve your money goals. You're more likely to get control of your money. If you just say, I want to be in control of my money, I don't want to be stressed. But you don't do anything with that, then it's not going to happen.

Starting point is 00:08:04 So what I'm talking about is everything from the baby steps even, our seven-step plan, actually having some checkpoints to say, hey, what progress can I be making? with my money. Even having conversations, if you're married with a spouse or if you're single with a friend, making that part of your routine, even a monthly budget is something that's really going to help you. I mean, we put this into place when we first got married, and it has been so helpful to know and have a plan every single month with where our paycheck is going. And we use every dollar. It is the best budgeting app. And I have it on my phone. Winston, it has it on his, and we have the same account. So every single month, we plan for the next month. And we're like,

Starting point is 00:08:41 okay, what's happening here, here, and here. You add categories. It's connected to our bank account, so the transactions come in and we can drag and drop them. It's just, it is a system to keep us on track with our money goals, and it's so helpful. So I'll put a link down in the description so you can check out every dollar and build your first budget for free. But there's also other things that you can be doing, even, you know, listening to podcasts or watching, you know, YouTube channels like this one. Like, whatever it is, put some things into place to continue to learn and to grow and to implement in your life. And if you're looking for more ways to cut down when it comes to your spending specifically, I break it down in my episode, 22 expenses to cut that you won't even

Starting point is 00:09:23 miss. So you can click right here or click the link below to check that out. All right, you guys, remember to take control of your money and create a life you love.

The Rachel Cruze Show - How Do Your Monthly Expenses Compare to the Average American’s?

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