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I was running some reports, I am a numbers guy and have every single expense dating back to 2006 recorded in Quicken But it's astonishing how much I have spent... here are some gems:
Average monthly over the last 65 months:
Eating out - $602
Groceries - $156
Vacations - $658
Rent - $1176
Motorcycles - $354
Fuel - $130
Entertainment - $56
Autos (including fuel, service etc.) - $347
Total average monthly expenditure - $3,918
Total average monthly net income - $6,672
Average savings rate: 41%
I still managed to save 41% of my income monthly which I think is OK, but could've done better. I think my expenditures are crazy, $750/mo. on Food? WTF? That is insane. I just eat out too much and spend a lot on alcohol (2-3 beers/day add up)
So, my case in point - I think I spend quite a bit but I still have a good buffer and no debt... I know people don't spend as much eating out, never take any vacations and have no hobbies, are DUAL income and yet are living paycheck to paycheck. What are they doing with their money?
Oh, MANY WAYS it can happen, Just to name a few:
1) Income lower - in fact the median income for a full time worker in USA is only about $40k, IIRC. Even two of these incomes put together is only $80k.
2) Expenses/outgo higher:
a) Large debts, especially medical/dental/law/professional school
b) Children in day care, private school, or college, or a combination of these
c) Children or other family members have severe illness or disability and require daily assistance
d) High-priced housing, especially in places like NYC, LA, or SF. That small apartment is much less appealing if you have kids, especially more than one.
e) Debts acquired due to irresponsible spending, such as large credit card balances from impulse shopping or "flashy" cars and houses
f) Large medical premiums and out-of-pocket costs, especially for a family, which may exceed $20k/year
g) Failed business whose expenses exceed its income, leaving the person attempting to start it deeply in debt
Shrug. Medical appointments consume a lot of my weekday 9-to-5 time. I have neither a car nor a license to drive one. I have one job with weird hours and an employer willing to accommodate weird schedules.
Fair enough. I can understand health issues. It doesn't matter how much money you have if you don't have your health.
I was running some reports, I am a numbers guy and have every single expense dating back to 2006 recorded in Quicken But it's astonishing how much I have spent... here are some gems:
Average monthly over the last 65 months:
Eating out - $602
Groceries - $156
Vacations - $658
Rent - $1176
Motorcycles - $354
Fuel - $130
Entertainment - $56
Autos (including fuel, service etc.) - $347
Total average monthly expenditure - $3,918
Total average monthly net income - $6,672
Average savings rate: 41%
I still managed to save 41% of my income monthly which I think is OK, but could've done better. I think my expenditures are crazy, $750/mo. on Food? WTF? That is insane. I just eat out too much and spend a lot on alcohol (2-3 beers/day add up)
So, my case in point - I think I spend quite a bit but I still have a good buffer and no debt... I know people don't spend as much eating out, never take any vacations and have no hobbies, are DUAL income and yet are living paycheck to paycheck. What are they doing with their money?
What is money for, except to enjoy life? You are taking care of the future, so go for it.
Shrug. Medical appointments consume a lot of my weekday 9-to-5 time. I have neither a car nor a license to drive one. I have one job with weird hours and an employer willing to accommodate weird schedules.
so all your issues are the reason people should earn less then market at their living ?
Couldn't agree more. There is an obsession with spending. In my neighborhood, most people can't even park in their garage because it is full of material things. Another thing I noticed is that there seems to be more self-storage facilities than churches.
Heh, yeah. I once read an article online where guy from Chile said that in America people have "apartments for their things." If we thought about self storage in that way, maybe we would more quickly pare down our possessions.
Delusional? I think that's too strong a word. When you have a 40% out of wedlock birth rate, and even higher among poor people, it's obvious a lot of people aren't making good decisions. No wonder the middle class is shrinking.
The person you quoted gave you a good example. Heath reasons. Never know when you are going to go. Waiting till 35 to have your first kid could be to late. Not to mention, their is a greater risk for down syndrome and other things longer a woman waits.
I guess we have to define what is having kids "early" and what is "waiting". I do think in today's world why rush to have kids before 24 or 25? But also, why wait till 35 or 37 to have your first kid?
I had my first child at 24. I started trying to have a second at 27. I was struggling with staying pregnant and was finally able to have my second at 31. I would not have been able to have children if I had waited any longer.
Apparently you don't know what poor means. It means going to the food bank because your pantry is empty, and having to walk or take the bus because you don't have a car or motorcycle.
If you stopped eating out, you could afford 2 $300 pairs of jeans every month.
I have been low income and a single mom since I became a mom. Never have I had an empty pantry. I shopped sales, used coupons and stretched food stamps when we received them. Even now, I might not cook at home or the kids might say "there is nothing to eat.", but we have a packed pantry with all the basics, tons of canned goods, unopened boxes of cereal, pasta, tuna, sauces, etc. Never do we not have enough food that we would miss a meal. People that have no food, make no sense. And often times they have messed up priorities. They buy cigarettes before food. Or worse.
Delusional? I think that's too strong a word. When you have a 40% out of wedlock birth rate, and even higher among poor people, it's obvious a lot of people aren't making good decisions. No wonder the middle class is shrinking.
Lol! You think THAT'S why the middle class is shrinking?? Delusional might not be a strong enough word.
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But it's astonishing how much I have spent... here are some gems:
That is insane. I just eat out too much and spend a lot on alcohol (2-3 beers/day add up)
Another thing I noticed is that there seems to be more self-storage facilities than churches.
