Where Did My Money Go in 2008?
According to my handy dandy excel spreadsheet, I earned $90,303 in 2008. This amount includes my “net” income and bonuses from the 9-to-5, rental income, online income, child support, cash gifts, and rewards. This amount does not include any taxes paid (federal, state, local, medicare, social security), fringe benefit premiums (FSA, heath, dental, vision, long/short TD, and life insurance), tax deferred income (401k and pension), or employer contributions. This is ONLY the amount that touched my grimy little hands. And here’s how I spent it all:
|
SINGLE MA’S 2008 EXPENSES |
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|
Description |
Amount |
% of Income |
| TOTAL INCOME |
$90,303 |
|
|
|
|
|
| 1. Debt Repayment |
$0 |
0% |
|
|
|
|
| 2. Rental/Biz |
$20,188 |
22% |
|
|
|
|
| 3. Savings |
$21,640 |
24% |
|
|
|
|
| 4. Household |
$26,029 |
29% |
|
|
|
|
| 5. Needs |
$11,200 |
12% |
|
|
|
|
| 6. Wants |
$10,941 |
12% |
|
|
|
|
| 7. Miscellaneous |
$345 |
<0.5% |
|
|
|
|
| TOTAL EXPENSES |
$90,303 |
|
When looking at my expenses as a % of income, I am not surprised that household (29%), savings (24%), and rental/biz (22%) were my largest expenses. These three things alone account for 75% of my spending. On the flip side, needs/wants (12% each), misc (0.5%), and debt repayment (0%) were my smallest expenses. According to conventional wisdom, this distribution of income is near perfect. But as you know, the devil is in the details. I will expound later.
Do you track your expenses and review them at the end of the year?
If so, how’d you do in 2008?
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How much did you give to Charity?
Interesting… No I don’t track these things, but I’m kinda curious as to how I did. The only thing I looked at was how much of my net was saved, and it was a good healthy amount. But concrete percentages would certainly be more informative!
Kudos to you for having only $345 in msc expenses. My msc is way more than that and I dont bring home half as much as you. I will do better in 2009!
I should but I’m scared! lol This a very nice break down.
Yes, I track my expenses and review them every year. My 2008 percentages were as follows:
Investments (includes charitable giving, savings and retirement) was 30%
Household 26%; Taxes and Benefits (fed, state fica, medical, etc) was 25%
Personal (hair, blow/fun money & vacation ) was 9%
Auto was 6%
Food was 4% and Debt repayment was 0% … nothing left but the mortgage.
I realize this is off topic, but I read your blog often and trust your opinion! I’m looking for a rewards credit card, and was wondering if there was a particular one you’d recommend. Currently my main credit card is still the original credit account I opened a few years ago. I pay it off in full every month though, so I’d like to get a card I could earn some rewards using. If you have any suggestions, I’d love to hear them. Thanks!
I am a little scared of you and your tracking, but impressed. As you might guess, I don’t track my income and expenses that closely and therefore, could not tell you the percentages of where my money goes on a actual basis. I am not going to do it either (I know me), but it is interesting to read the details of your tracking.
where does food fall here?
in your needs? (ie where is dining out?)
yikes – just answered my own question!!
answered my own question!!