Yearly Expenses

Basic cost-of-living expenses include housing, food, transportation, child care, health care and other necessities, according to the Economic Policy Institute.For example, commuting costs could vary based on your job and how you get to work.

You might think expenses are expenses. If the money's going out, it's an expense. But here at Fiscal Fitness, we like to think of your expenses in four distinct ways: fixed, recurring, non-recurring, and whammies (the worst kind of expense, by far). What are these different types of expenses and why do they matter?

Mortgage/rent. Homeowners or renters insurance. Property tax (if not already included in the mortgage payment). Auto insurance. Health insurance. Out-of-pocket medical costs. Life insurance. Electricity and natural gas.

Rent or mortgage. Electricity. Gas. Water and sewer. Internet/cable/phone. Subscription services, such as a gym membership, newspaper, Netflix or Hulu. Credit card bills and loan payments. Insurance.

Housing. Your housing expenses are likely your single-largest budget item. Food. Your monthly food expense includes everything that you spend on eating. Transportation. Childcare and pet care. Cell phone. Health insurance. Debt. Savings.

Fixed expenses, savings expenses, and variable costs are the three categories that make up your budget, and are vitally important when learning to manage your money properly. When you've committed to living on a budget, you must know how to put your plan into action.

Key findings. The average American household spends $5,102 every month. Housing is the largest single category, accounting for 33% of monthly expenses. Transportation was the second-most expensive category at 16%.

To get the average, add up the amount of money spent for 12 consecutive months, then divide by 12. This will give an average of how much has been spent per month. Calculating average monthly expenses usually begins with listing all living costs.