“When I was young I thought that money was the most important thing in life; now that I am old I know that it is.” Oscar Wilde
How much money have you spent in your entire life up until this point? The amount may surprise you. By the best estimates the average American will spend over two million dollars in their lifetime. Two million six hundred thousand is the exact figure, by current standards. Two million one hundred thousand for those that retire by age sixty-five. This of course does not take into account things such as inheritance income or monetary winnings of any kind. These figures take into account things such as housing, gas, food and clothing, medical care, and raising a child.
In general a person will spend all the money they make in a lifetime. With the current average of $50,000 a year in income, it works out to about one hundred dollars a day for an American living in today’s economy. Of course the amount spent depends on what stage of your life you are in, so next we will take a look at how much the average American spends in each stage of their life and how that adds up.
During your childhood (Ages 0-24) you are living off of your parents money, counting on them for food shelter and education. Even though this money is not your own, it is being counted for the purposes of this article.
- ·Living Expenses $10,000 a year x 23 = $230,000
- ·Education Expenses $50,000
- ·Total Spent $280,000
During the young adulthood (Ages 24-40) years you are probably going to buy a house and a car, plus your daily living expenses are going to increase. You may also be paying the expenses of your own Children at this point, or taking care of your parents as they grow older and drop out of the work force.
- ·Living Expenses $20,000 x 16 = $320,000
- ·Car Expenses $50,000
- ·Housing Expenses $200,000
- ·Total Spent $570,000
In the middle of your life (Ages 41-60) your income is going to become more solid from years of education and experience in the workforce. You will be spending more time and money on hobbies and traveling, and may have some children going to college. You may even be moving on to bigger and more expensive cars and housing.
- ·Living Expenses $30,000 x 20 = 600,000
- ·Car Expenses $150,000
- ·Housing Expenses $500,000
- ·Total Spent $1,250,000
In the elder years of your live (Ages 61-80) you may spend a larger amount of your income on medical expenses, but may still be doing some traveling and hobby work if you are in good enough health to continue doing so. Your car and housing expenses shouldn’t increase by any real amount in this phase of your life.
- ·Living Expenses $10,000 x 20 = $200,000
- ·Medical Expenses $15,000 x 20 = $300,000
- ·Total Spent $500,000
So in your lifetime you can expect to spent around 2.6 million dollars. Earning the national average of $50,000 a year it would take you fifty-two years to earn that much. By using the above numbers you can figure out how much you have spent in your life up until this point. Many people underestimate how much they spend in a year, but the numbers are surprisingly high. Most people don’t realize that they will technically be millionaires by the time they retire, since they will never have all that money all at once.If you enjoyed this post, please consider leaving a comment or subscribing to the RSS feed to have future articles delivered to your feed reader. Follow on Google+