10 of the Biggest Expenses in Every Household

If you’re looking for ways to save more money, the first place you need to begin is with your household expenses. By determining how much you are spending each month, you can figure out ways to reduce the costs.

It might not be easy at first, but with some simple lifestyle changes, you’ll soon get the hang of it. Every victory requires some hard work.

Below, we are going to take a look at ten of the most significant expenses so that you know where to get started. 

Want to learn more? Then keep on reading.

Mortgage or Rent

mortgage bill

Understandably, the biggest expense of every household is going to be either paying back a mortgage or rent. While this is something that you can’t avoid, it’s essential to know how much you owe each month so that you can work out a proper budget.

If you find that you are struggling, it might be worth thinking about moving to a smaller, more affordable property. Once you advance your savings, you can then look at buying a new home.


utility bill

After rent or your mortgage payment comes utilities. This includes things such as your water, gas, and electricity. In the US, the average cost sits at around $2060 for families; however, this does change depending on location.

Luckily there are a few things you can do to reduce your utility bills quickly. Whether it be solar power, low flow faucets, or even just changing your daily habits. You can save money if you put your mind to it.


As much as food is a necessity, we don’t often think about how much we spend on it. Alongside regular grocery shopping, dining at restaurants all adds up.

However, you don’t need to eat scarcely in order to reduce costs. By planning, buying in season, using coupons, and being flexible with your options, you’ll still be able to enjoy delicious food at a more affordable price point.


Getting to and from destinations is essential, but owning a vehicle is one of life’s most significant expenses. Alongside fuel, things such as car insurance and regular maintenance require savings too, and it can seem impossible to get on top of it.

Try and plan ahead for these costs, and practice preventative maintenance to reduce the risk of extensive repairs. You might also:

  • consider carpooling with friends
  • walk or ride a bike
  • catch public transportation
  • combine errands into one trip


While some of us rely on our phone data to get us by, most households pay for internet usage separately, especially if they will be using streaming services.

While most internet costs are around the same, prices do fluctuate. So if you want to cut them down, it can be worth looking at different providers. Even just saving $10 a month makes a difference.

Mobile Phone and Landline

The next most considerable household cost is your phone. This sits at around $113 a month on average, depending on the company you go through.

While nowadays, a phone is something that you can’t go without, most people no longer use a landline. So, instead of paying for it, you might consider using your mobile only.

Another way to save extra cash, in the long run, is to buy your phone outright instead of on a plan.



Netflix, Spotify, Audible, and Amazon Prime – Not many of us can go without our entertainment subscriptions. However, it’s something that you don’t want to miss out on when preparing your budget. 

Even though they might not seem like a large cost, once you add them all together, you will be surprised at how much you are paying. 

Upon further thinking, you may be able to unsubscribe to a few. One or two is probably more than enough to keep you occupied.


We already talked about the cost of car insurance above, but you also need to plan for your home insurance too. While its price will vary depending on a few different factors, you can expect it to set you back around $120 a month.

Again, this is something that you can’t go without, but you can browse around at different options to find the most affordable coverage for you. Trust us when we say it really is worth doing your research.

Sanitation and Maintenance 

One of the most unexpected costs that you may not think about is household sanitation and maintenance. Things such as cleaning supplies, gardening, pest inspections, and trash removal are expenses that are consistent throughout the entire year.

In reality, they can’t be avoided, but by preparing ahead and finding ways to cut down supply costs, you can save while keeping your home healthy and safe.

For instance, you might:

  • make your own cleaning supplies with available ingredients
  • DIY household repairs where possible
  • keep an eye out for sales
  • schedule inspections and repairs during off-season times
  • rent or borrow tools from friends instead of buying them


Finally, the last significant cost of every household is new clothing. According to research, the average person spends around $161 a month on it. While a family of four spends approximately $1800 a year!

We all grow and require new items, but you might want to think again before you add that luxury pair of shoes to your cart. While everybody deserves a treat here and there, you can greatly reduce unnecessary expenditure by being extra careful and shopping smartly.

money spent at home

Final Words

And that’s it! These were ten of the biggest expenses in every household. Now that you know the main costs, you can put together a budget and start determining where you could be saving more money.

While it may seem like a lot of effort, it really is worth being financially cautious as early on in your life as possible. You’ll be able to build up your funds and enjoy more fun because of it.

Good luck!

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