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Oh i wish i could just keep more of my own money. Here is where my money goes:
Taxes 36%
Cost of Living 34%
Other 12%
Savings 18%
Taxes - Federal, State, Social Security, Medicare, SUI, SDI
Cost of Living - Rent, Health Care, Utilities, Insurance, Gas, Groceries
Other - Fun, Stuff i don't need
I can basically make decisions with about 30% of my money, and over half of it i save. Yes, i could live in a little bit worse of an apartment (my place is not so great anyways...) but rent is high all over the bay area, it wouldn't make much of a difference. It surprised me that my federal taxes alone are more than my also absurd rent for a 1 bed apartment.
Is is normal that taxes are someones biggest expense? Or am i doing something wrong. Surely i shouldn't spend more money elsewhere because i'm already not getting far with my savings.
Your biggest expenses are a mortgage (in your case rent) and taxes. Are you putting anything in a 401k?
Yes it's like a kick in the butt to work your butt off and see how much the government takes. Talk to a CPA and start learning a little about the tax code and make the necessary adjustments.
Quote:
Originally Posted by BoredRestless
Oh i wish i could just keep more of my own money. Here is where my money goes:
Taxes 36%
Cost of Living 34%
Other 12%
Savings 18%
Taxes - Federal, State, Social Security, Medicare, SUI, SDI
Cost of Living - Rent, Health Care, Utilities, Insurance, Gas, Groceries
Other - Fun, Stuff i don't need
I can basically make decisions with about 30% of my money, and over half of it i save. Yes, i could live in a little bit worse of an apartment (my place is not so great anyways...) but rent is high all over the bay area, it wouldn't make much of a difference. It surprised me that my federal taxes alone are more than my also absurd rent for a 1 bed apartment.
Is is normal that taxes are someones biggest expense? Or am i doing something wrong. Surely i shouldn't spend more money elsewhere because i'm already not getting far with my savings.
Oh i wish i could just keep more of my own money. Here is where my money goes:
Taxes 36%
Cost of Living 34%
Other 12%
Savings 18%
Taxes - Federal, State, Social Security, Medicare, SUI, SDI
Cost of Living - Rent, Health Care, Utilities, Insurance, Gas, Groceries
Other - Fun, Stuff i don't need
I can basically make decisions with about 30% of my money, and over half of it i save. Yes, i could live in a little bit worse of an apartment (my place is not so great anyways...) but rent is high all over the bay area, it wouldn't make much of a difference. It surprised me that my federal taxes alone are more than my also absurd rent for a 1 bed apartment.
Is is normal that taxes are someones biggest expense? Or am i doing something wrong. Surely i shouldn't spend more money elsewhere because i'm already not getting far with my savings.
The bay area is a very expensive area to begin with. Most of what you listed are optional expenses, which sets your quality of life. An 18% savings rate is good, are you satisfied with your quality of life now?
And can you break down your taxes by category? 36% seems very high, unless you're making $300k+.
Oh i wish i could just keep more of my own money. Here is where my money goes:
Taxes 36%
Cost of Living 34%
Other 12%
Savings 18%
Taxes - Federal, State, Social Security, Medicare, SUI, SDI
Cost of Living - Rent, Health Care, Utilities, Insurance, Gas, Groceries
Other - Fun, Stuff i don't need
I can basically make decisions with about 30% of my money, and over half of it i save. Yes, i could live in a little bit worse of an apartment (my place is not so great anyways...) but rent is high all over the bay area, it wouldn't make much of a difference. It surprised me that my federal taxes alone are more than my also absurd rent for a 1 bed apartment.
Is is normal that taxes are someones biggest expense? Or am i doing something wrong. Surely i shouldn't spend more money elsewhere because i'm already not getting far with my savings.
For frugal folks with high incomes, and for childless professionals, YES, it's normal.
Try having a couple of kids. Then see what your biggest expense is!!!
How much anyone pays in taxes is not the issue. The issue is whether the distribution of the burden is fair and what our taxes are used for. Countries like Denmark, which are well run (but have low military costs), have a personal tax burden of about 60%. Not that a danish system is preferable, since I like directing my own money.
If you owned a home then Real-estate taxes would be in your list. You pay them as part of your rent.
You also have taxes built into the price you pay for everything else. So yes over taxes can be the largest expense. A lot more than we realize.
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