I hit $1K in CC spending rather easily, on just 4 of my bills, maybe I'm doing it wrong...
In a 4 person household:
Groceries: $450
Gas: $80
Insurance (auto, home, life): $175
Health Insurance: $500
The health is reimbursed by my employer at the end of each month, but I still get the 1% back each month.
I also use the card for electricity, gas (power), phones, internet, etc.
$1k/mo of spending just doesn't seem like a lot to me even though we've significantly cut down our spending over the last 8 months since getting on board w/ MMM.