American households spend an average of about $60K a year according to the 2017 study by the Bureau of Labor Statistics.
There are three things that Americans spend most of their money on.
- Housing – $19,884 (33%)
- Transportation – $9,576 (16%)
- Food – $7,729 (11%)
Focus on reducing the big three expenses instead of minimizing your avocado toast or morning coffee.
In the past couple years, I’ve gone from $1,700 a month in housing to $1,350. I got out of my brand new leased car which was about $500 for car payment, insurance and gas to a 2006 used car for $5K cash and bike to work everyday. I also lowered food costs from $500+ to about $250 a month.
Through these changes I’ve been able to save about $1,000 a month.
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