Yearly Expenses - How am I doing?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
abs9986
Posts: 108
Joined: Sun May 20, 2012 7:25 pm

Yearly Expenses - How am I doing?

Post by abs9986 »

Hi all,

I just compiled my yearly expenses (rough estimate of CY2014) and wanted to get your feedback as to how I am doing. Some of the expenses were hard to calculate because I live with my fiancé, but I have provided a rough estimate.

Age: 28
Salary 65K
Total Expenses 26K

I feel like I try to save a lot and generally "feel" like I don't spend a lot of money, but I am surprised how high my yearly expenses are. Some new expenses were engagement ring and new car payments which equal about 6K. What are your thoughts. How do I compare to other late 20 somethings.

Home:
Rent 7320
Home Improvement 48

Automotive:
Car Payments 2971.02
Fuel 1141
Insurance 1094
Repair 262
Tolls 150
Public Transport 116
Parking 20.35

Food and Dining:
Groceries 2893
Restaurants 1660
Alcohol 267

Health Care:
Doctor Visits 206
Pharmacy 471

Bills
TV/Internet 892

Travel 2022

Misc
Iphone 132.48
Haircut/Dry Cleaners 365
Movies 30
Charity 100
other 122 (no idea)
Wedding Ring + Insurance 3400
Clothing 60
Amazon 559 (protein powder, new razor, vacuum, books, misc)

Total 26K
Gill
Posts: 6957
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Yearly Expenses - How am I doing?

Post by Gill »

Income taxes and Social Security? Any other items withheld from pay such as medical insurance?
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
JDDS
Moderator
Posts: 1053
Joined: Sun Mar 16, 2014 2:24 pm

Re: Yearly Expenses - How am I doing?

Post by JDDS »

Your expenses seem fine to me. Is your electricity included in your home total? What about a cell phone bill?
IMD801
Posts: 147
Joined: Sat Dec 21, 2013 9:26 pm

Re: Yearly Expenses - How am I doing?

Post by IMD801 »

Looks good. The fact you even care about your annual spending probably indicates you're doing better than most. :beer
livesoft
Posts: 74457
Joined: Thu Mar 01, 2007 8:00 pm

Re: Yearly Expenses - How am I doing?

Post by livesoft »

I should send your list to my oldest child. She really needs help controlling her spending. :)
Wiki This signature message sponsored by sscritic: Learn to fish.
travellight
Posts: 2871
Joined: Tue Aug 12, 2008 5:52 pm
Location: San Diego

Re: Yearly Expenses - How am I doing?

Post by travellight »

Looks fine but my haircut/dry cleaner budget is zero. I cut my own hair and rarely dry clean. I try to buy washable clothes. My movie budget would be bigger though.
364
PS241
Posts: 41
Joined: Wed Jan 02, 2013 10:49 pm

Re: Yearly Expenses - How am I doing?

Post by PS241 »

Your spending is out of control! $11.04 a month for iphone. That's like way out of line.

....Yeah you're fine. Maybe live a little more actually.
BenJ
Posts: 30
Joined: Wed Oct 17, 2012 12:11 am

Re: Yearly Expenses - How am I doing?

Post by BenJ »

Just my opinion, but money spent on jewelry is just thrown away, but women think differently, so we must comply...a little.
Topic Author
abs9986
Posts: 108
Joined: Sun May 20, 2012 7:25 pm

Re: Yearly Expenses - How am I doing?

Post by abs9986 »

To clarify, these are just my expenses not counting what my fiancé spends. We do split certain things like she pays the energy bill and I pay the Internet bill. The auto insurance of 1k is for both cars so I am really only paying half of that.

I wanted to focus just on expenses so I am not including taxes and savings.
traveler90
Posts: 206
Joined: Wed Nov 13, 2013 3:46 pm

Re: Yearly Expenses - How am I doing?

Post by traveler90 »

Well, your alcohol spending is much lower than mine :sharebeer
harryw
Posts: 101
Joined: Sun Nov 09, 2014 4:42 pm
Location: California

Re: Yearly Expenses - How am I doing?

Post by harryw »

I was going to mention the car insurance, but you just explained that.
One thought - do some serious research on the effectiveness of protein powder...
texaspapas
Posts: 116
Joined: Tue Jul 15, 2014 7:03 pm

Re: Yearly Expenses - How am I doing?

Post by texaspapas »

Hey there,
I’m similar age and of similar expense-reduction mind set. Here’s my comments:

Your rent is pretty good at 610.. I’m a little lower, but your is pretty good. And 48$ for home improvement for a year, that’s pretty damn good.

Car payments okay… You could get cheaper insurance if you paid it off and get less coverage, so paying down that loan would work to your advantage on multiple levels. Fuel/tolls/transport/parking I can’t argue with but for more specific comments let us know how many miles you are driving city/hwy, etc.

Groceries at 241/mo is pretty good. I’m ranging 250-300 often (but I also include things like Amazon nutrition supplements in my calculations).

$138/mo for restaurants I can’t argue with. I eat out very rarely, but a one or two outings with friends can easily double my monthly allocation for this expense. Last month I was at about $70 for the month. This month I’ll probably be more like $100.

22 bucks /mo on alcohol is pretty good I imagine on a national average. I’m not a drinker really myself though, so you’re pretty far beyond me in this area.

I can’t argue with your healthcare expenses I guess.. but I hope whatever is going on is temporary and you can reduce those expenses, especially pharmacy expenses. I have to say, for a late 20s guy, I’m surprised to see these expenses.

You’re Tv/Internet is hugely out of proportion compared to mine. I’m total 108 for the year. (This is after being split with roommate). Do you really need cable or whatever it is? Split a netflix with your Gf, and you probably already have Amazon Prime which includes lots of tv/movies…

Travel I can’t argue with… who doesn’t like that. But obviously it would significantly reduce your budget if you pared this down.

iPhone for 133/year? ?? ??? That’s great. Can you share with us your plan/strategy on that?? I’ve shopped and hunted for cheap a cheap plan and I’m still at 396/year.

How much are you paying per haircut?? I just found a lady who will do mine for $5 all included. If you need dry cleaning done, you need it, but ideally you could reduce spending on this.

Charity/wedding ring/insurance, can’t argue with those.

As for Amazon, as I’ve mentioned, I break those expenses into their relative categories based on what it is I’m purchasing. A vacuum to me would have been home improvement since it’s a durable good (in theory at least). Protein is food/grocery, books entertainment or educational expenses, respectively, etc.

You might give Mint or one of the other budgeting apps a shot if you’re really into this. I will say I’ve been a bit disappointed with Mint as it just really doesn’t do much, but it’s pretty good at keeping tallies of what you’re spending on what different categories.

Best of luck.
Grt2bOutdoors
Posts: 23204
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Yearly Expenses - How am I doing?

Post by Grt2bOutdoors »

I can't argue with the $122 (no idea) part either. While you may have no idea, I have a pretty good idea - manicure, pedicure, hair coloring/highlights, retail therapy/going out with "friends". :) If you want to continue having good relations, don't question it.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
User avatar
Cottons
Posts: 93
Joined: Thu Feb 27, 2014 12:39 pm

Re: Yearly Expenses - How am I doing?

Post by Cottons »

If you could provide some info as to where you live, that would help us determine how well you're doing.

I am near your age, lower salary, and can say that overall it looks like you're doing just fine. The only thing that pops out to me is your restaurant spending. Try and pare that down a little, and put the remainder towards saving/investing.
MichDad
Posts: 596
Joined: Sat Apr 20, 2013 3:50 pm

Re: Yearly Expenses - How am I doing?

Post by MichDad »

From Charles Dickens' classic, David Copperfield, comes this oft-quoted recipe for happiness from Mr. Micawber:

"Annual income twenty pounds, annual expenditure nineteen [pounds] nineteen [shillings] and six [pence], result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

MichDad
Altephor
Posts: 132
Joined: Mon Jan 27, 2014 5:50 pm

Re: Yearly Expenses - How am I doing?

Post by Altephor »

Your wife-to-be is a woman. So it's fiancee, not fiance. Fiance is the male. I read the original post thinking you were a woman, then got to the reply where you said 'she does this and this..'. Might save you a little confusion on other people's part in the future.
Topic Author
abs9986
Posts: 108
Joined: Sun May 20, 2012 7:25 pm

Re: Yearly Expenses - How am I doing?

Post by abs9986 »

whoops - good catch on the fiancee bit.

Restuarants is a little high because I'm usually the one paying - but I agree I should try to cut back alittle here.

Haircuts with tip cost $25

The iphone is just for the phone - I am luckily still on my parent's plan.

Live in the DC/Baltimore area.

For cable/internet - I have comcast. I don't even watch much tv, but the price of internet only was literally only $8/month cheaper. My monthly rate including taxes is $79. I could only get cheaper if I got super slow internet. I really wish I could cut here but hvae been unable to find a better price.
InspectorGadget
Posts: 11
Joined: Wed Dec 24, 2014 8:37 am

Re: Yearly Expenses - How am I doing?

Post by InspectorGadget »

Thanks for posting, it helps me know how I am doing with my expenses also by being able to compare. I'll list some of my similar expenses so you can compare. I am the same age, but am married and own my home.

Home improvement: Lots, probably $10k, remodel projects
Car payment: $0
Fuel: $2k average, factors in 2,000 mile move
Insurance: $1,500 for 2, PIP insurance is expensive
Groceries: Not sure, about the same maybe, you need them to live and eating Ramen noodles is no good for you
Restaurants: Probably only $50/month, don't eat out much
Health care: $0 (although $100/month for gym, that helps my health)
Utilites: $100-150/month average
Internet: $35/month (sucks that you can't find anything cheaper)
Phone: $10/month (for person asking about plan/strategy, Republic Wireless can be very economical)
Travel: Similar

Misc stuff seems fine. Maybe go longer in between haircuts and dry cleaning?

It doesn't appear you spend a much on entertainment besides eating out, alcohol, and movies. That is good. I try to limit the expensive entertainment stuff, but between a concert and/or special event and golf/snowboarding, I probably spend at least $100/month average on that.
acejacksingh
Posts: 326
Joined: Thu Dec 04, 2014 11:15 am

Re: Yearly Expenses - How am I doing?

Post by acejacksingh »

Dude you're doing just fine!

I just started with making my own monthly budget (still refining every month) and I'm only 26. I need to get to your level haha

Good job,
AceJ
KlangFool
Posts: 18989
Joined: Sat Oct 11, 2008 12:35 pm

Re: Yearly Expenses - How am I doing?

Post by KlangFool »

TS,

IMHO, you are asking the wrong question. The correct question should be do you save enough?? How much do you save?? If you save enough, you can spend the rest and you will turn out fine.

"Pay Yourself First" saving method..

http://www.investopedia.com/terms/p/pay ... ffirst.asp

So, how much do you save??

For example, if you save nothing and you are living paycheck to paycheck, you had spent too much regardless of how you break down your expenses.

KlangFool
Xpe
Posts: 135
Joined: Wed Sep 17, 2014 7:24 am

Re: Yearly Expenses - How am I doing?

Post by Xpe »

harryw wrote:I was going to mention the car insurance, but you just explained that.
One thought - do some serious research on the effectiveness of protein powder...
Even if 99% of the protein goes in one end and out the other, protein powder is still easy and cheap calories, important after a workout.

At best its protein and calories, at worst its calories a la soylent.
User avatar
Watty
Posts: 21342
Joined: Wed Oct 10, 2007 3:55 pm

Re: Yearly Expenses - How am I doing?

Post by Watty »

One thing to add to your list is how much your car depreciated over the last year. If you buy a $20,000 car and sell it eight years later for $4,000 it cost you $2,000 a year on average for the depreciation.

It would also be good to double check your paycheck to make sure you got all the payroll deductions.
Post Reply