SACRAMENTO, Calif. — A recent State by State Bill Pay Market report reveals that residents in California spend significantly more on average on household bills than most states in the U.S.
California residents spend about $2,649 per month on the 10 most common household bills, 32.3% higher than the national average of $2,003, according to the report.
Comparatively, residents in Sacramento alone spend an average of $2,101 per month on household bills, 20.7% lower than the state average and 4.9% higher than the national average of $2,003.
The 10 most common bills considered in the study include mortgage, rent, auto loans, utilities, auto insurance, health insurance, cable/internet, phone, alarms/security and life insurance.
According to the Census Bureau, the average U.S. household median income currently sits at $67,521. On average, about 36% annually of that income is spent on bills.
This number is rapidly increasing as the cost of living rises along with the rate of inflation, which has gone up 8.3% since April 2021, according to the U.S. Bureau of Labor Statistics.
The Market Bill Pay Study found that 87% of Americans worry about being able to pay bills if inflation continues to rise at its ongoing pace.
Although the economy is not always predictable, experts suggest that inflation may see a steady decrease later.
According to an Op-Ed published in the Wall Street Journal by Princeton economics professor Alan Blinder, inflation is expected to fall “as quickly and dramatically as it rose.”
Until then, California residents may want to put aside extra money to keep up with persistent rise in household bills.
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