Average US Household Spendings

In 2019, the average US household spent $56,538. 7.9% in groceries, 6.1% eating out, 35.5% in housing, 3% in clothing, 17.3% in transport, 8.79% in healthcare, 5.7% in entertainment, 2.49% in education, and 12.9% in insurance and pensions.

Those numbers are baffling, but also interesting to analyze how opportunities for wealth can be created. 

Less costs means more savings, or less needs for a regular paycheck. The less you need to spend, the greater flexibility you have to live life on your own terms.

Eating out represents $72 per week. That’s more than what I paid for a week in a hostel in the old district of Georgetown, Malaysia. Home cooking or inviting friends over are obvious ways to decrease costs.

I find the housing and transportation costs even more astonishing. Why in the hell would you pay that much for a rent when you still need to pay for a car or public transports? I could maintain two additional people with the money spent in those two categories. If you can walk or bike to go to work or do your errands, you’re already richer than most.

When I see those numbers, I’m not surprised to see the growth of movements advocating for frugality and anti-consumerism, like minimalism, digital nomadism, permaculture, or FIRE. We do work bullshit jobs to pay cars and homes we can’t afford, waiting for the weekend to truly live. It’s not just a Fight Club quote, it’s an economic reality.

I wonder if this is mainly due to the growing inequality we can witness everywhere (rich people pushing the numbers up), but still, I’m having a hard time realizing how much money this represents.