While you might be impressed with a $500 bottle of wine or a $750 tin of caviar those are minor purchases compared to the biggest purchases in your life. And no, it's not the sparkly diamond engagement ring either. You might want to take a seat before you find out where you'll spend the most money. Whenever you buy something you should take the entire purchase price in consideration not just your initial out-of-pocket cost.
Traditionally a home is considered the biggest purchase in your life. Home values range from less than $100,000 for a one-bedroom condo to several hundred thousand dollars and up for a single family home in a "hot" real estate market. The median price of a home in the United States $182,600 at the time of publication. Keep in mind a home in New York City will be considerably more than a home in the Midwest.
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When automobiles became status symbols instead of a means of transportation vehicles the prices went up. All the advertising has to be paid for and it's incorporated into the cost of your vehicle. Prices range from $15,000 for a modest economy model to well over $75,000 for luxury models. NPR.com reports the average price at $30,000.
That sheepskin hanging on your wall costs a pretty penny. $12,000 per year for public institutions to $32,000 for private institution at time of publication for a total cost for a four year college education of $48,000 to $128,000 and that doesn't include graduate school or professional education such as becoming an attorney, veterinarian, dentist or doctor.
Insurance may be another surprise when you include home, health, vehicle and any other insurances you might have. The cost depends on various factors, including the deductible. The higher the deductible, the lower the payment, but the more you'll pay if you have a claim. The costs really add up over time. Home and vehicle insurance are mandatory, while health insurance may not be depending on where you live. The annual nationwide average cost of health insurance for a family was $4,968. Your employer may be pick up some of the cost. Coverage may or may not include dental and eyeglasses. Co-pays vary as does whether preventative care is included.
- Bankrate: Credit Card Payoff Calculator
- Mint: The Surprising Numbers Behind Buying a House
- Bloomberg: Home Prices in U.S. Cities Fall at Slowest Pace Since ’10
- NPR: Average US Car Price tops $30,000
- National Center for Education Statistics: Education
- EhealthInsurance: How Much Does Health Insurance Cost?
Katie Jensen's first book was published in 2000. Since then she has written additional books as well as screenplays, website content and e-books. Rosehill holds a Master of Business Administration from Arizona State University. Her articles specialize in business and personal finance. Her passion includes cooking, eating and writing about food.