How To Reduce Your Big 3 Expenses

Cait Mack
4 min readOct 19, 2021

Housing, transportation and food are making us poor.

Artem Beliaikin

Living well in America is expensive.

The average rent, overall, is 1,200/month. But I know most people pay significantly more. The average mortgage is 1,275. Average food cost for a family of 4 is 1,000/month. Owning a car (car payments, insurance, gas, maintenance, etc.) is about 700/month.

The average salary is 5,100 per month (gross). Though obviously many live on a lot less. You can see how these Big 3 eat up most of your take home pay.

Here are some ways to reduce the Big 3 expenses.

Big Expense #1: Housing

Live with your parents or your family for as long as you can.

I lived with my parents until I was 27, then again from 32–34. This alone has helped me save anywhere from 40–60% of my yearly salary. It was the catalyst to me growing my wealth.

Refinance your mortgage to find better rates

You can save hundreds of dollars a year on interest and pay your debt off faster.

Get a roommate

When I did move out of my parents house the first time around, I had 2 roommates split a 3 bedroom home with me. I only had to pay a third rent and a third of utilities. It was great! I was still able to save 20–30% of my yearly salary this way. And yes, I found roommates on Craigslist, and it worked out perfectly. They’re still my friends.

Negotiate rent

Yes, this really can be done in certain situations. If you have money saved, try offering to pay the year in full for a discount. If you’re handy, you can also offer to work for a break in rent.

Live in a smaller, cheaper home

Think about it…the bank says you qualify for a home that costs 350k, but you can find a nice home for 250k. Now you’re paying less for the house and less interest but also- less in taxes and energy.

Big Expense #2: Transportation

Become a 1 car family

Cait Mack

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