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Have you ever stopped and wondered whether your monthly spending is higher or lower than the typical American’s? You may be kicking yourself for spending $6,000 a month and skimping on contributions to your savings account, only to realize that $6,000 a month is less than the typical consumer spends.

As of 2023, the average American was spending $6,440 per month, up from $6,081 in 2022. And it’s not so surprising to see that increase. Not only do living costs tend to rise from one year to the next, but inflation was still pretty rampant in 2023, which explains the monthly increase of $359.

If you’re having a hard time keeping up with your expenses, or if you simply want to cut back to boost your savings, then here’s a general tip. Following a budget is a good way to keep your spending in check and make more mindful spending decisions. Click here for a list of the best budgeting apps.

But you should also know that the three largest spending categories among Americans today are housing, transportation, and food. Here are steps you can take to save money on each.

Housing

The typical American spends $2,120 per month on housing (per 2023 data). Some ways to spend less on housing include:

• Refinancing your mortgage if you’re able to lower the interest rate on your home loan by around 1 percentage point or more
• Appealing your property taxes if they’ve risen a lot over the past year (your local tax assessor should be able to give you information on how to do this)
• Shopping around for new homeowners insurance
• Getting on your homeowners association board (if applicable) to have a say in your HOA’s budget and try to find ways to lower monthly dues
• Giving up amenities in a rental, like a gym or doorman, for less expensive rent
• Seeing if your landlord will lower your rent in exchange for your help in maintaining their property and tackling items they’d normally be responsible for, like snow removal

Transportation

Although the typical American spends much less on transportation than housing, the average cost there is still $1,098 a month. Some ways to spend less on transportation include:

• Refinancing your auto loan, which could make financial sense in 2025, since borrowing rates are expected to fall across the board in the coming months
• Shopping around for new auto insurance
• Seeing if you qualify for pay-per-mile auto insurance if you work from home and don’t drive a lot
• Making sure to fill up your car with quality fuel that gives you better gas mileage (Costco gasoline, for example, is TOP TIER certified, which means it’s designed for superior performance)
• Seeing if you can get by without a car altogether, which may be doable if there’s adequate public transportation where you live

Food

Food costs the typical American $832 per month. But you can save money on food by:

• Joining a warehouse club store like Costco or Sam’s Club if you have a larger household and buying in bulk makes sense for you
• Shopping at discount grocery stores like Aldi
• Seeing if there’s a low-cost CSA (community-supported agriculture) program in your area where you can buy a share, or split a share with someone else
• Scoring extra cash back at the supermarket by paying with a credit card that offers extra rewards on groceries

Of course, these are just some ways to lower your monthly spending if that’s something you feel you should do. Cutting back on things like streaming services might help, as might doing your own personal grooming instead of paying for those types of services.

But finding ways to save on your largest monthly expenses might have the most impact on your finances. It pays to focus on ways to slash your housing, transportation, and food costs.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.