The Four Biggest Expenses You’ll Ever Make in Your Life


Your entire existence isn’t dependent on your ability to earn and spend money throughout your life. There is so much more to life than finding a well-paying job to earn a stable income, but it’s hard not to look at it from a financial standpoint when the only thing you can do for free is breathing.

That’s because all the essentials in life will come at a cost. You need food for sustenance, clothes on your back, and a roof over your head—all of which will cost you money. And if you want to experience the small luxuries that life has to offer, it will cost you even more. No matter what move you make, you’re going to spend your hard-earned money.

However, contrary to what most people believe, your money isn’t really going into very different things. In fact, all the money you’re earning throughout your life only goes into five overarching areas. It may come as a surprise to you, but it would actually make so much sense once you realize it.

Most people’s lifetime earnings will be spent on these four areas below. If you’re wondering how that’s possible, then you should see the quick rundown for yourself. Although it might not be the same for everyone, there can be some similarities when it comes to individual financial situations.

1. House

Oftentimes, the biggest expense that people will make in their life is to buy themselves a house. The bulk of the costs of homeownership doesn’t only come from the monthly dues of home loans, but they do take up the biggest percentage considering that most repayment plans can last up to three decades.

Aside from the monthly dues, the other expenses of homeownership can include the initial down payment on the house, the interest rates of the loan, property taxes, home insurance, and upkeep. This still doesn’t include the costs of routine maintenance and repairs that will be needed throughout the course of your stay in the house.

2. Children


After the purchase of a house, the costs of raising kids come second on the list. That’s because childcare costs will include prenatal and fertility care, as well as childbirth, which is all done in the first nine months of their lives. The next 18 years will easily put a hole through your pockets if you’re not careful.

As your children are growing up, you will have to spend money on their clothes, food, housing, education, and healthcare, especially if medical and dental services aren’t included in their insurance coverage. And that’s not accounting for the costs of their future college tuition fees.

Of course, as a parent, there can also be additional expenses that you won’t necessarily need if you were alone, such as creating a will for your children in case of your untimely demise. And speaking of which, having life insurance can come in handy to provide for your kids if you want to keep their future financially secured even if you’re no longer present.

3. Education

If you were to pursue higher education without monetary assistance from your parents, you might be able to get by on your own through student loans. However, you mustn’t overestimate your ability to earn back the amount you borrowed because that can be a slippery slope into debt.

Besides, there are plenty of ways to earn your degree without accumulating so much debt, such as working part-time, looking into work-study programs, or even applying for scholarships. You don’t have to break your bank just to have a brighter future, especially if doing so will create more debt than you can repay.

4. Car

Many people are tempted to buy themselves a car that is beyond their means because it can make them feel more stable and capable financially. However, what they may fail to consider is that the costs of car ownership aren’t limited to their monthly auto loan payments.

Having a car also means paying for auto insurance, gas, parking, and the other expenses of routine maintenance. Additional costs will come in the form of repairs, custom designs, or performance upgrades if you truly want to express your personality through your car and make it your own.

It may seem like anything you do in this life will come at a price. For you to maintain a certain standard of living that can last until your retirement, you’ll have to work day-in and day-out tirelessly. But just because your entire adult life revolves around money doesn’t mean you can’t enjoy the things in life that are free.

About the Author

Scroll to Top