Do You Spend More or Less on Utilities Than Your Fellow Americans?

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Utilities are a big expense for both renters and homeowners. Keep reading to learn how your spending on utilities compares to your peers. 

Whether you own your own place or rent it, chances are good that you are responsible for paying your utility bills. These are your monthly bills for things like gas, sewer, water, and electricity — all services that you absolutely need and can’t live without.

But, while you have to pay utility bills out of your bank account, you don’t want to overspend on these essentials.

It can be helpful to compare how your spending looks relative to your peers so you can get an idea of what is normal. Here’s what the Bureau of Labor Statistics 2021 Consumer Expenditure Surveys says about what people are paying for utilities.

This is the typical amount spent on utilities

According to the Bureau of Labor Statistics, the mean spending on utilities among all consumer units was $4,223 in 2021. This includes mean spending of:

$447 on natural gas$1,551 on electricity$122 on fuel oil and other fuels$1,409 on telephone service$695 on water and other public services

The amount consumers are spending does vary substantially based on income, though. While consumer units with an income of under $15,000 had mean spending of $2,596 on utilities and services, those with incomes above $200,000 had a mean spending of $6,488.

Larger houses and increased consumption are the likely reasons why higher income households spend more in this area.

How can you reduce your utility spending?

Although spending on utilities isn’t optional, you have a lot of control over just how much money goes to these costs each month. And, the less you can spend on utilities, the more you’ll have left over for other things, such as paying off credit cards, making fun purchases, or saving for big goals.

If you want to reduce your utility costs, some steps you can take include the following:

Live in the smallest space where you’re comfortable. Larger homes and apartments cost more to heat and cool. You can save a lot of money on electricity if you pick a home that’s just the right size for you.Opt for energy efficient upgrades. Adding solar panels or switching to a heat pump or energy efficient appliances can sometimes save you a lot of money — especially if you have older appliances in your home. Many electric companies as well as the federal government and some local governments periodically offer incentives for making energy-efficient upgrades to your home.Adjust your thermostat. If you can keep your house a little bit cooler in the winter and a little bit warmer in the summer, you can save a lot on heating and cooling costs. You can also install a programmable thermostat to change the temperature while you are sleeping or away.Fix energy drains. If you have gaps in your doors or cracks around your windows or too little insulation, make fixes to these issues so you aren’t air conditioning or heating the outside world.Unplug unused items. Many items use phantom power when plugged in and there’s little reason to waste this electricity. Turn off the switch on the power strip or unplug the items when not in use.

These are just a few of many things you can try out to lower your utility costs — and they are well worth considering, especially if you’re spending more than your peers.

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