Ever wonder how much most people spend — and how YOUR spending compares to the average?
We dive into some of these numbers in this episode, sharing what the average person spends, what we think you need to save, and how to fit YOUR spending around these data points.
Some of the average spending numbers we look at, as a percentage of gross income, include:
- Food (both in terms of money spent on groceries and money spent on meals out and at bars and restaurants)
We also divulge the details on our own spending and how our percentages stack up against the average.
That leads to a conversation about how to set up a budget in a way that feels freeing, not restrictive — and we also shared a 3-step process for cash flow management to help you reach your goals without depriving yourself of enjoying using your money today.
Jump into the episode here, or check out detailed show notes and takeaways below:
Further Reading & Resources Mentioned in the Show
- Studies and surveys show that money makes you happy on a very subjective level: it’s most satisfying when you have more of it than the next guy.
- Look up average spending numbers for the U.S. and by lots of other subcategories, like age range or region, with the Consumer Price Index section of the Bureau of Labor Statistics site.
- Read the original blog post on how we invest 30% (or more) of our income each year.
- Not mentioned in the show, but this is an interesting study on how three generations — Baby Boomers, Gen X, and Gen Y — think about retirement and retirement savings. It’s interesting to contrast this with the average spending, because we can conclude that if people don’t have enough saved for retirement.. they’re probably spending too much in the years leading up to it.
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