• The average US family now spends $25,513 annually on the 10 most common expenses.
• The largest monthly payments Americans make are for their mortgage, rent, and car loans.
• Other expenses like utilities, cell phones, and health insurance have also seen significant increases.

Despite lower inflation over the past 18 months, many Americans still have concerns about the economy due to the rising costs of everyday items.

A study released on March 7 by Doxo, a platform for managing household expenses, reveals that the average US household now spends $25,513 per year—equivalent to 34% of the median household income—on the 10 most common bills. This includes mortgage payments, rent, and cell phone bills.

Based on Doxo’s data, in conjunction with the US Census Bureau, the average household now allocates $2,126 per month to these top 10 expenses, marking a 4% increase from the previous year and a 19% rise since 2019. In contrast, median US household income increased by only 0.2% over the past year and 14% since 2019.

Lynnette Khalfani-Cox, a financial expert and author of «Bounce Back: The Ultimate Guide to Financial Resilience,» explained to Business Insider that some of these cost hikes can be linked to escalating interest rates.

The largest monthly receipts Americans have to cover include mortgage, rent, and car loans, as outlined in the report.

The average mortgage payment is now $1,402, marking an 11% increase since 2019. This rise is overshadowed by rent costs, which soared by 27% to $1,300, and auto loan payments, which surged by 33% to an average of $496 within the same timeframe.

While home prices have somewhat stabilized and mortgage interest rates have remained above 7% for the majority of the last year, this dynamic has led to a standstill in the real estate market, with some buyers awaiting lower rates and existing mortgage holders hesitant to sell due to pre-pandemic advantageous interest rates.

Conversely, Khalfani-Cox indicated that the scarcity of available rental units exerts a more substantial influence on rent prices.

«There is a shortage of affordable houses and apartments, yet obtaining a rental space is more feasible, providing landlords with greater flexibility in raising rental charges,» stated Khalfani-Cox to Business Insider.

Other frequently encountered expenses include utilities, car insurance, cable and internet services, cell phone bills, health insurance, life insurance, and home security.

Among these monthly expenses, utilities, cell phone bills, and health insurance have experienced the most significant hikes over the past five years. The average monthly utility cost is now $362, showing a 25% increase since 2019. Cell phone expenses rose by 29% to $121, while health insurance premiums climbed by 30% to $114 each month.

The cost rise since 2019 for the remaining four bills—car insurance, cable and internet services, life insurance, and home security—has been more moderate, ranging from an 11% increase for cable and internet to 16% for car insurance.

Common monthly expenses represent just a portion of the financial burdens for many

These expenses are just a fraction of the broader picture depicting the current cost of living. Khalfani-Cox emphasized that there are monthly outlays that are not consolidated into a single bill yet significantly influence a household’s finances, such as debt.

«Factors like credit card obligations, student loans, and even deferred payment agreements are progressively consuming a large portion of individuals’ budgets,» Khalfani-Cox noted.

She also highlighted the escalating costs of groceries and grocery store inflation.

Overall inflation reached a peak of 9.1% on a year-over-year basis in June 2022. Nevertheless, food prices at home (i.e. grocery store purchases) were impacted even more severely, hitting a 13.5% increase in August of the same year.

Although this rate dropped to 1.0% in February, it does not represent a deflation trend seen in other sectors.