How typical “pyramid of spendings” looks like for Americans?

5 comments

1. Nice try, IRS.

2. This isn’t really something with a typical answer

3. There isn’t a singular answer for all Americans. Gas alone varies across the country, even across your own state. Common groceries also aren’t the same price across the country

4. My income just supports me.

   Taxes, health insurance, social security, and whatever else automatically comes out of my check is about 27%.

   Housing, including mortgage, utilities, taxes and a little extra set aside for when things come up, is currently at about 35 to 40%.

   Food is about 6%

   My car (paid off) is about 3% for gas and insurance, but I put aside another 5% for repair and replacement costs.

   Subscription services: just over 1%

   IRA account (for retirement) 15%.

   The rest goes towards random stuff like saving for vacations, hobbies, hanging out with friends, gifts, impulse purchases, or whatever.

5. There is not really a typical. It will be really different especially from state to state. People who make $30K a year will have a different “pyramid” than people who make $300K a year. People who are careful savers will have a different “pyramid” than people who aren’t. People who live in extremely high cost of living areas will have a different “pyramid” from people living in low cost of living areas.

   Many sources “advise” that you carefully plan out how much % to spend in every category every month but not everyone pays attention to that kind of thing, or is able to do it in practice.