How do people spend their money every month? With the exception of some people who either have large incomes or are unusually frugal, the dollars go almost exclusively to mortgages, transportation, and the costs of day-to-day living–clothes, food, entertainment among them.
doxoINSIGHT has just issued its “United States of Bill Pay: Top 50 U.S. Metro Areas Household Spend Report 2021.” The study’s key goal:
The first of its kind, the report takes a city-specific look at the $4.4 trillion U.S. consumer bill pay market, considering bill payments in the ten most common household bill payment categories in the 50 largest U.S. metro.
In specific, the categories are: 1) mortgage payments, 2) rent, 3) car loans, 4) utilities (primarily electric, gas), 5) car insurance, 6) cable and internet, 7) health insurance, 8) cell phones 9) security systems, and 10) life insurance. Across the cities measured, Americans spend $2.9 trillion on these each year, which means they are a significant part of the national GDP.
The national average for these bills monthly is $1,889. That puts the annual figure at $22,668. It is hard to make a comparison between this and income. The median household income in the U.S. is about $68,000. However, the doxoINSIGHT study only takes in the top 10 items by monthly expense, leaving many unmeasured.
The 50 city list is topped by San Jose at $2,491, which is about a third above the national average. This should come as no surprise. Among metro areas, according to the Census, San Jose has the second-highest median income among large cities at $115,893. San Francisco is second on the doxoINSIGHT monthly expense list at $2,424. It ranks first in median household income according to the Census at $123,589.
Although there is not an exact match between the ranking of city income and household prices, it is very close. However, that should come as no surprise. The link between income and the cost of living has been in place for a long period, perhaps even centuries.
The bottom of the list should also come as no surprise. doxoINSIGHT observes: “Buffalo, New York residents pay the least in average monthly expenses, at $1,348, which is 28.6% lower than the national average.”
Ultimately, beyond dollars and cents, there is not much to take away from this. If you live in an expensive place, best to make a lot of money.
Click here to read These Are The Most Expensive Cities To Buy A Home
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