What do we spend money on every day? People have different ways to earn and spend their money. Some people work hard to save up and make a large sum of money. Others buy a large number of expensive things, which only waste their time and energy. This can lead to feeling poor and unhappy. Many people believe that spending is not a bad thing, but what they don’t understand is where they’re spending it!
We spend money on so many different things. Many of them may not seem like we should be spending money on, but the reality is that even our smallest purchases have an impact on our finances. Our goal with this blog is to help you understand where your money is going and how you can optimize the process for you.
Rising transportation costs
Rising transportation costs are a big deal for consumers. More people are moving away from public transit, and the price of gasoline is on the rise.
According to the U.S. Bureau of Labor Statistics, transportation costs include vehicle depreciation, fuel, maintenance, parking, and tolls. These expenses make up about half of what we spend on transportation every year — but they’re also growing rapidly.
According to the BLS report “Consumer Expenditures,” spending on transportation increased by 2 percent in 2015 compared to 2014; however, it was still lower than the 4 percent increase seen in 2013 (the most recent year for which data is available).
According to the Bureau of Labor Statistics, the cost of transportation rose by 5.1 percent in March 2019, after increasing by 4.8 percent in February. Here’s why that matters:
The price of gas is rising. The national average for a gallon of regular unleaded gasoline was $2.49 on May 1, up from $2.39 on April 1 and $2.38 at the end of 2018. The price has been rising steadily since January when it stood at $2.21 per gallon.
That increase is likely to continue as oil producers in the Middle East keep pumping out more oil and as demand for gasoline continues to rise with the warmer weather and higher temperatures during the summer driving season.
The cost of car insurance is going up too — but not as much as the price of gas would suggest. The average premium for a new car sold in June 2019 was $3,418 — down slightly from $3,423 a year earlier, according to Edmunds’ data partners at J.D Power and Associates. That’s because insurers are offering discounts on auto insurance policies this year because they’re worried about an economic slowdown or another recession.”
The cost of work-life balance
The cost of work-life balance is a big one. We spend money on things like lunch, coffee, and cigarettes, but how much do we spend on work-life balance? A lot less than you might think.
The average person spends about $3 billion per year on coffee alone. That’s enough for us to buy more than 1 million cups at Starbucks every day and still be left with change.
Spending money on things that aren’t directly related to your job can cause stress, which can be damaging to both your mental health and your productivity.
If you have trouble prioritizing your time, it might seem like there are no other options than to spend all of it working — but there are ways to get what you need without spending all of your money on work-related expenses.
The cost of work-life balance is a big one. It’s not just the time we spend at work, but also the time we spend with our families and friends. If you’ve got a job that demands that you be on call 24/7, then it’s easy to find yourself spending more time at work than you would like.
Here are some tips for saving money and finding a better work-life balance:
1. Try telecommuting or remote working options if possible; this will allow you to still get your full salary and benefits, but without having to pay for office space or commuting expenses.
2. Limit travel expenses by booking flights in advance or using an online travel agency; this way you can get the best deals on flights and hotels without having to wait in lines at the airport or worrying about price fluctuations.
3. Consider renting out your spare room when it isn’t being used as an office or home office space; this way, you have money set aside each month for other expenses so that there’s no need for extra money spent on rent payments each month (unless of course, you choose to keep the room).
The cost of home maintenance
The cost of home maintenance is one of the largest categories of expenses. According to a recent survey by the Mortgage Bankers Association, home maintenance paid by owners averaged $1,500 per year.
The costs can vary widely depending on the specifics of your household and location, but they’re typically higher in more expensive areas. In fact, according to the National Association of Realtors, homeowners in the nation’s top 10 ZIP codes spent an average of $3,000 annually on home maintenance in 2016.
The most common types of things that need to be done include lawn care, snow removal, and porch repairs (which can account for about 20 percent of those costs). The next biggest category is painting (13 percent), followed by carpentry (12 percent), plumbing (11 percent), electrical work (10 percent), and gardening (9 percent).
Home maintenance is the biggest expense that most households face. It can range from minor things like fixing a leaking tap to major repairs, such as a broken heating system.
If you’re looking for ways to reduce your home maintenance costs, here are some tips:
Use energy-efficient appliances.
Ensure your home is adequately insulated and warm in winter, and cool in summer.
Keep your windows well-polished and clean them regularly so they don’t let in dirt or moisture that could damage your walls.
Regularly check all electrical sockets and fittings for nicks or fraying cables.
Your daily coffee habit
Your daily coffee habit is probably the single largest expense you have on a daily basis. It’s also one that you probably don’t spend much time thinking about. But while it may not seem like it at first glance, there are many things to consider when deciding how much to spend on your daily cup of joe.
The first thing to think about is how much coffee you actually get through in a given day. Most people will agree that they don’t drink their entire cup every single day, so they can usually afford to spend more on the next cup or two. However, if you’re one of those people who own a pot before even finishing your first cup, then you’re going to want to keep your spending in check by only buying what you need and skipping those extra cups.
It’s also important to consider how often you drink coffee: some people drink it every morning, others only once or twice per week — and still others never drink it at all! There’s no right answer here, but if your budget is tight, then you’ll have to decide whether or not drinking coffee every morning (or even most mornings) is worth spending more on than other beverages (like water).
According to Clarity Money, we spend a little bit too much each day, although it is not surprising that we spend more on food and utilities than other things. However, what may be surprising is how much we are overspending on our health insurance and gym memberships. Overall, we have spent $4.66 billion on unnecessary expenses.
While it is a little offbeat, the infographic does provide insight into a question I had asked myself several times: what do we really spend our money on every year? The visual format of this infographic was a great way to display this information because it makes the information easier to absorb and understand.