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How much will people spend in their lifetime?

By combining the The BLS (U.S. Bureau of Labor Statistics) spending data and the lifespan data from the WHO (World Health Organization) or SSA (Social Security Administration); we can calculate how much the US average household will spend in their lifetime.

The average 25 year old will spend $3,819,103 in his/her lifetime.  This assumes the average person lives until 85 years old and spending habits correspond to the 2019 BLS spending data and there is no inflation.  With the same assumptions, the average 45 year old will spend $2,498,923 and the average 65 year old will spend $1,030,723.

Lifetime Spending with Inflation

The Historic US Inflation Rate has been around 2.25% (https://www.multpl.com/inflation). 

AgeAverage Lifetime
Spending		With 2.25%
annual inflation
25$3,819,103$7,760,036
45$2,498,923$6,081,902
65$1,030,723$3,201,717

The numbers reflect the impact of 2.25% inflation.  Even though historically 2.25% annual inflation occurred, it doesn't mean going forward it will continue at this rate.  It could increase or decrease in value.  If the numbers look concerning there are 2 things you can do (1) adjust spending (2) increase financial wealth.

 

Related Post

Do you spend too much? or too litte? How much does the average american spend vs the top 10%?
https://www.unpackinvesting.com/2021/08/spending-too-much-or-too-little_0645791283.html

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