8 expenses that represent 87% of the average household budget | by Destiny S. Harris | March 2022


Are you spending more than you should?

Photo credit: Pexels…Tiger Lily

It is recommended that you keep all housing costs at 30% of your gross income. But what if you could find decent quality housing for 15-30% of your net income, including maintenance and utilities?

Are your housing costs exorbitant because you live in a privileged area (eg California, New York or Washington)?

If you don’t live in an expensive city and your housing costs are more than 30% of your total raw income, then where could you eradicate and decrease?

A few options:

  • Move to another region
  • Reduce
  • Eliminate unnecessary utility use and housing costs
  • Cheaper contract, but quality repairers (if you buy or rent a house)

Many people are now working remotely due to the pandemic.

” Worldwide, 16% of companies are totally remote, according to a study by Owl Laboratories. This same study found that about 62% of workers aged 22 to 65 report working remotely at least occasionally. This study also revealed that 44% of companies do not allow any remote work. (source: technical apollo)

However, many people still use regular transportation to and from work, as well as other regular uses. Whether by car, train, bus, plane, etc.

How much do you spend on transportation each month?

Review your budget for monthly trends.

If you’re working for a W-2 job, a lot of your pay goes directly to the government, and there’s nothing you can do about it.

We pay taxes on everything: income tax, sales tax, property tax, capital gains tax, and the list goes on and on. If you want to reduce your tax burden, become an active investor or property owner; the government rewards both types of people because they help create jobs and fuel the American economy.

If you’re not careful and buy or rent more homes than you can afford, you’ll learn this truth on a deeper level when the utility and maintenance bills roll in. If you can barely afford the house, I don’t think you’ll be able to afford the rest that comes with it.

We no longer cook our food; we buy prepared meals or eat cheaply. It’s all about convenience. However, the convenience adds up – whether in advance or later (with our health).

Create a food budget and determine how much you can manage while feeding your family nutritious meals. It’s not bad to eat out once in a while, but it’s always better to cook, so you can save money and increase your chances of having good health.

Worried about investing in something that might not even exist when you reach retirement age? You’re not alone. It’s hard to avoid paying Social Security. The best way to manage this burden is to personally invest in your financial future.

“According to financial experts, the percentage of Americans in debt is approximately 80%. 8 out of 10 Americans have some form of consumer debt, and the average debt in America is $38,000, not including mortgage debt. Owing money seems like a way of life for Americans, because collectively we have a $14 trillion debt. (Source: Team Payments)

If we don’t create more debt, our money goes to paying down the debt. The best way to reduce the amount of money you waste paying off debt is to avoid debt first. Spend less than you earn; that’s all it takes.

A better place to put your money is in an investment account. It has a much higher reward rate than debt.

As I mentioned in the diet column, eating less when eating out can be very beneficial to your health, leading to lower healthcare costs. Food affects our health more than people realize. Our bodies communicate with us through what we feed them.

Eat better. Live better.

Attend your regular checkups and doctor visits, and get tested early, to stay on top of your health, which can further lower your healthcare costs.


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