And while many Americans may be able to trim their budgets a bit when it comes to the types of groceries they buy or put off expensive car purchases to keep their budgets in check, it’s much more difficult to adjust monthly expenses like housing, utilities, and insurance.  

Unfortunately, those costs are going up, too. Across the 10 most common monthly household bills—including housing, utilities, auto loans, cable, internet, cell service, security, and insurance expenses—costs rose an average of nearly 4% last year, according to Doxo’s 2023 U.S. Bill Pay Market Size and Category Breakout Report. 

Overall, U.S. households spend about $3.87 trillion per year on bills—$3.22 trillion of which falls within the 10 essential bill payment categories that makes up nearly three-quarters of all U.S. consumer spending on recurring monthly expenses, according to Doxo, a bill pay service provider. 

Breaking it down, the average U.S. household spends $29,459 per year on all household bills, Doxo finds. Real median U.S. household income hit $70,784 in 2021 (the latest data on file), which means Americans are using about 42% of their paychecks just to cover the essentials. 

Housing continues to be the biggest monthly expense for many families. Americans spend an average $6,341 on mortgage payments per year and $4,716 annually on rent, according to Doxo’s analysis that is based on actual bill payments from consumers located across 97% of U.S. zip codes. Of course, consumers who pay rent typically are not also paying a mortgage, so most households have to focus on paying only one of these big-ticket expenses. 

It was actually the monthly cost of life insurance and utilities that saw the biggest year-over-year percentage increases. Life insurance costs jumped by about 9%, while utility bills—which include electric, gas, water and sewer, and waste and recycling fees—rose 8% year over year. 

While some monthly costs are more stable—utility fees are more regulated in some states, and many Americans have fixed-rate mortgages—rent and auto expenses are more variable. So while expenses didn’t overall jump dramatically, there’s no guarantee that they will remain steady. 

For many Americans, that means keeping a close eye on their bills to ensure that they catch and understand rate increases or changes. And when those do happen, many experts recommend trying to negotiate down cost increases when possible by calling the provider. Additionally, some providers will offer discounts if you automate payments, which can come in handy if you have a steady income and manage your finances closely.