How much do you spend per year (funds, pay, million)
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I have budgeted that we can spend $37K, depending on varying expenses like car repairs and traveling to care for our parents (doesn't happen too often but occasionally).
Since there was another thread about the percentage of gross pay people saved, I was curious how much everyone spends per year.
I spend about 31K per year
1100 rent x 12 = 13300
Other 1500 x 12 = 18000. No car payments or debt payments.
Total = 31K
I definitely don't want to waste the day thinking about it, but most of my income is going out to eat. I go out to eat about 3 times a week because I don't cook. I also have a couple glasses of wine with my meal. In saying that, I can only think at the top of my head spending about 10K in dinners alone.
I definitely don't want to waste the day thinking about it, but most of my income is going out to eat. I go out to eat about 3 times a week because I don't cook. I also have a couple glasses of wine with my meal. In saying that, I can only think at the top of my head spending about 10K in dinners alone.
If you are spending 10K on eating out and still putting a good chunk away for retirement, paying cash for your cars, etc, that's great!
However, you might consider how much wealth 10K a year can bring. If you put that 10K a year into a good balanced mutual fund (Fidelity Balanced, Vanguard Wellington, T. Rowe Price Capital Appreciation, just to name a few) and you earn 8%, this is how much you'd have after:
I haven't even taken into consideration the tax break you'd get from contributing to a 401K, IRA, or other retirement plan.
The 3 funds I've mentioned have all exceeded 8% annual returns over the last 15 years, despite the fact that the last 15 years were, historically speaking, a period of below average returns for a 60% stock/40% bond portfolio.
When I filed my taxes this year, I was surprised at our gross household income, and my wife asked, Where did it all go? Being a math nerd at heart, I got out my spreadsheet and tried to break it down. The numbers here summarize my findings. When applicable I tried to use significant figures for estimated quantities.
Mortgage interest 5.6%
Mortgage principle 11.9%
Property Tax 2.9%
Income taxes (all) 19%
retirement 15.1%
Car payment 2.7%
Food (all) 8%
Utilities (cable, etc) 5%
Fuel <1%
dog related 2%
furniture 2%
home maintenence 6%
insurance (all) 2%
Medical 2%
travel 4%
Hobby(mostly guns) 2%
Other 10%
I don't know how much of this is considered "spending", but at least it gives me an idea of where my income is going.
Since there was another thread about the percentage of gross pay people saved, I was curious how much everyone spends per year.
I spend about 31K per year
1100 rent x 12 = 13300
Other 1500 x 12 = 18000. No car payments or debt payments.
Total = 31K
Regular monthly expenses are about $1600 per month. Overall, I'd say I spend about $24000 per year, which would include those "lumpy" expenses like travel, car repairs, etc.
I'm not sure if that was a joke or not. I don't think spending everything you make really helps the economy. A low savings rate has actually hurt our economy.
I'm not sure if that was a joke or not. I don't think spending everything you make really helps the economy. A low savings rate has actually hurt our economy.
Spending your money on Chinese goods doesn't help, but spending it on US goods certainly helps.
Savings rate is overrated, there will always be people that save and always those that don't. The key is, are they simply not saving or are they going into debt buying imported goods? That is the worst thing that they could do to "help the economy".
I bought around $2k in USA made tools over the past two months, you can bet that helped our economy. Part of the reason China still doesn't really have a middle class is because all they do is save, also Japan's economy has been dead for the past 2 decades because their citizens don't spend, all they do is save save save. Saving helps no one but yourself.
If we were to live here like some people do (spending nothing, saving everything) our economy would be in shambles.
P.S. A million $$ in the bank at 50 means nothing if you get hit by a bus at 35 crossing a street.
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