Average Yearly Expenses for a Single Person in the U.S

Living alone in the U.S. comes with unique financial challenges and opportunities. For the average American, understanding yearly expenses is key to creating a sustainable budget.
According to the Bureau of Labor Statistics, single individuals spend significantly on essentials like housing, transportation, and food, with spending on housing often taking the largest share. Additional costs such as personal insurance and pensions and car payments further shape their financial landscape.
This article dives into the average consumer annual and monthly expenses, offering insights into cost trends, regional variations, and practical budgeting strategies. Stay tuned as we break down the numbers to help you navigate the complexities of living alone in 2025.
Average Annual and Monthly Expenses
Key Figures:
- National Average: A single person spends approximately $40,000 to $55,692 annually, translating to $3,361 to $4,641 per month.
- Lower Range: For frugal living in smaller cities, yearly costs can drop to $30,000 to $40,000.
- High-Cost Areas: In metropolitan hubs like New York or San Francisco, annual expenses can exceed $60,000, driven by housing and other related expenses.
Expense Breakdown:
Category | Average Annual Cost | Percentage of Budget |
---|---|---|
Housing | $15,600 – $25,436 | 32% – 38% |
Transportation | $4,800 – $13,174 | 12% – 17% |
Food | $5,400 – $9,985 | 12% – 15% |
Healthcare | $4,200 – $9,556 | 8% – 12% |
Entertainment | $3,600 – $4,500 | 4% – 8% |
Utilities & Internet | $2,400 – $3,600 | 5% |
Personal Insurance & Pensions | $9,556 | 12.4% |
Miscellaneous & Personal Care | $2,000 – $3,500 | 5% – 6% |
Major Average Monthly Expense Categories
1. Housing
Housing remains the largest expense for most single individuals:
- The average monthly rent for a one-bedroom apartment is around $1,494, but it can exceed $2,000 in major cities like New York or San Francisco.
- Housing-related expenses (utilities and maintenance) add another $161-$220 per month, depending on location.
- For those who own homes, property taxes and mortgage payments significantly impact their yearly budget.
2. Transportation
Transportation costs vary based on lifestyle and location:
- Urban residents using public transportation spend around $220 per month, while car owners face higher costs of approximately $400-$600 monthly, including fuel and insurance premiums.
- Rising vehicle purchase prices and insurance premiums contributed to a significant increase in transportation-related expenses from 2022 to 2023.
3. Food
Food expenses are another substantial part of a single person’s budget:
- Grocery bills average between $450-$800 per month, depending on dietary habits and location.
- Dining out frequently adds additional costs; the average monthly expense for eating out is around $250-$300 per month.
4. Healthcare
Healthcare expenditures include insurance premiums and out-of-pocket medical costs:
- Monthly health insurance premiums range from $350-$800, depending on coverage plans.
- Out-of-pocket expenses for prescriptions and routine care can add up to an additional yearly cost of around $1,200-$2,400.
5. Entertainment and Miscellaneous
Spending on entertainment (e.g., streaming services or outings) averages around:
- Annual cost: $3,600-$4,500
- Monthly expense: Approximately $300-$375 per month
Regional Variations in Cost of Living
Where you live significantly affects your overall budget:
- States with a lower cost of living (e.g., Arkansas or Mississippi) allow single individuals to spend less on housing and utilities.
- High-cost states like California or Massachusetts demand higher budgets due to elevated rent prices and other related expenses.
For example:
- In California: The average cost of living exceeds $53,082 annually, with rent averaging between $1,360-$2,649 per month.
- In lower-cost states like Alabama or Iowa: Rent for similar accommodations can be as low as $800-$1,200 per month, reducing overall living expenses.
Inflation Trends from 2022 to 2023
Between 2022 and 2023:
- The Consumer Price Index (CPI) rose by approximately 5.9%, impacting all major spending categories.
- Housing costs increased by an average of 4.7%, while transportation expenditures rose by over 7% due to higher vehicle prices and public transportation fees.
- Food prices saw a year-over-year increase of nearly 6.9%, driven by both groceries and dining out.
How to Manage Your Yearly Budget
To effectively manage your finances as a single person:
- Create a realistic monthly budget that includes all major categories such as housing, food, transportation, healthcare, and savings.
- Example: Allocate funds using the popular 50/30/20 rule (50% for needs like rent and utilities; 30% for wants like entertainment; and 20% for savings/debt repayment).
- Consider reducing discretionary spending on non-essential items like dining out or entertainment.
- Explore cost-saving measures such as:
- Using public transportation instead of owning a car.
- Sharing accommodations with roommates in high-cost areas.
- Shopping at discount grocery stores or using meal prep services.
Living alone comes with financial challenges but also offers flexibility in managing your budget according to personal priorities. By understanding the breakdown of yearly expenses—including housing costs, transportation fees, healthcare needs, and other related expenses—you can create a sustainable financial plan tailored to your lifestyle.
For most single individuals in the U.S., the average annual cost of living ranges between $40,000 and $55,000. However, with careful budgeting and strategic spending adjustments—such as leveraging public transportation or cutting discretionary spending—it’s possible to thrive financially while maintaining your desired standard of living.
Source :
[1] https://finance.yahoo.com/news/average-american-monthly-expenses-according-170029278.html
[2] https://worldpopulationreview.com/state-rankings/cost-of-living-index-by-state
[3] https://www.bls.gov/news.release/cesan.nr0.htm
[4] https://www.msmunify.com/blogs/cost-of-living-in-usa/
[5] https://www.bankrate.com/banking/savings/average-household-budget/
More Coverage
-
Fixed and Variable Expenses: The Key to Budgeting Mastery
-
Understanding Income Budget Categories in Your Budget
-
Housing Budget Categories You Should Include Today
-
Think and Feel: Knowing Your Money Personality
-
Savings Budget Categories for Achieving Financial Goals
-
What are Some Key Components of Successful Budgeting
-
Complete Guide to Transportation Budget Categories
-
Personal Care Budget Categories You Shouldn’t Skip
-
Emergency Fund Categories: Your Financial Safety Net
-
Pet Budget Categories: Complete Cost Breakdown