Monday, January 10, 2011

What Do You Spend Your Money On?

So, where does the money go?

I got to thinking after my taxes post about how I spend my money, because I don't feel like I live like a "rich person."  Let's break it down for the year, as best as I can, and these are approximations:

401K:  $16,500
Mortgage/Property Tax:  $36,000
Electric/Gas/Internet/Phone/Cable/Water:  $5,000
Life Insurance/Short Term Disability Insurance:  $7,200
Stock Investments:  $3,000
Condo Assessments:  $2,000
529 Accounts for Nieces:  $3,000
Home Insurance/Car Insurance:  $3,000  (this may be high; I can't remember what I pay)
Loan Repayment for $50K partnership loan:  $2,000
Clothing/Shoes/Beauty Products/Dry Cleaning:  $12,000  (this may be a little high for this year)
Gifts:  $2,000 (mom, grandma, nieces, nephews, it adds up)
Entertainment:  $12,000  (I don't know?  If I include party foods, booze, going out, trips, yeah)
Groceries:  $3,000 (I guess?  A little over $200 a month on groceries, yeah)
Cigarettes:  $3,500  (EEK, but look at what I am contributing to the state of Illinois)
Charity stuff:  $10,000

Um...huh.  I never thought I lived that high on the hog, but this is $120,200.  Some of these may be high estimates, since I don't keep a budget, and I don't feel I've spent that much on clothes and entertainment this year, but it adds up.  If I look at it on a monthly basis...going out to dinner, drinks, etc., Tory Burch shoes, adds up.  I never really thought about it because I can afford it.

So, at any rate, this is about 1/4 of my income, and matches my draw.  I'm not in bad shape or anything.  It's just kind of interesting to see it all laid out.  So where does or will the rest of it go?

Investments:  $100,000 (Retirement type stuff that I won't touch, but isn't age 65 investments)
Car:  $40,000 (was going to be a BMW 328i, but we'll see)
House:  $60,000 (remodel two bathrooms, some new furniture, other remodel projects like carpet)
Savings:  $100,000 (I like to keep ready cash on hand in case of emergency, and I like a big cushion; but $25,000 or $50,000 of this might go toward the principal on my condo.  We'll see.)

Maybe I do live high on the hog.  I don't really know anymore.


  1. As long as you have an emergency fund, your retirement plan, all your bills paid... you can spend your money on any damn thing you please.

  2. *lol* Uh... yeah. You are a "rich person". You can always be richer of course, and perhaps Bill Gates or Warren Buffet would consider you a pauper, but realistically speaking anyone who can write "I never really thought about it because I can afford it" about a hundred thousand dollars or more is rich.

    Not that there's anything wrong with that.

  3. Yeah, I know. I tell you, though, it's a weird transition when you didn't start out "rich" so to speak, and then all of a sudden you find yourself there. Definitely takes some getting used to!