households use about 8% of their income to either pay off debt, or increase savings - or sometimes both at the same time, as in the typical case of a mortgage payment. households has either life insurance, endowment, annuity or other personal insurance, at an average cost of about $1,231 per year. Smaller percentages of households make payments into government, railroad or private retirement plans. Self-employed entrepreneurs pay both the employer and employee amount directly to the federal government via the self employment tax. This money comes directly out of employees’ paychecks, while matching contributions are made by the employer. About 77% of households have this expense, paying $5,275 on average annually (this may cover more than one worker). The majority of this expenditure comes from the household’s contribution to Social Security. household spends $5,528 per year to protect its members from poverty in old age, or due to disability or death. This figure encompasses a wide range of rents from smaller towns to major metropolitan centers such as Los Angeles and New York.

The 35% of Americans who rent pay just a little less than homeowners each year for their rent, maintenance costs, and renters insurance, an average of $9,477. The average mortgage payment also includes an additional amount each month that goes towards the principal, effectively turning cash earnings into home equity.Īverage rent in the U.S. Homeowners pay an average of $9,552 per year (nearly $800 per month) on mortgage interest, property taxes and other expenses such as maintenance, repairs and homeowners insurance. households own their home, and more than half of homeowners have a mortgage. The remaining $7,068 covers utilities and other household operational expenses and equipment.Ībout 64% of U.S. That’s an average of $10,080 for direct payments on rent or mortgage interest, property taxes and insurance, as well as any lodging costs on out-of-town trips. household spends $17,148 on all things related to housing.

Personal budget examples