I thought it would be interesting (albeit somewhat awkward) to share where our money goes every month. Now, I won't get into numbers or anything – but with the pie graphic you will be able to see where a lot of our income goes to (this is last month's “allocation”).
Allow me to make some observations – as there clearly is room for improvement here.
Obviously housing is going to be a big chunk of anyone's budgets – especially if you own one. It's generally advised that housing shouldn't take up more than 28% of your gross income. One positive is that we do not own too much house.
Our housing includes things like: insurance and association dues.
Yeah, this is a biggie for us. After my wife started having some health issues, we decided to invest more into health-related costs. We see eating healthy as a big part of that – and an investment towards better future health (Lord willing). And, eating healthy in America today is not cheap. Still, I think we can do better in this category.
This should be plural. We own two cars (one is paid off) and the other is one we purchased after we got married and have just under a year (or less) left on the loan. I hate having vehicle payments – but am coming to understand the advantage of owning a newer vehicle. As a single guy, I spent thousands of dollars in yearly repair costs on old, beat-up “paid-off” vehicles. I sometimes think you're gonna be paying something if you need a car – if it isn't a car payment, it will be repairs or a monthly lease.
While this is only a month-snapshot – I think we can do better here.
My wife still has a school loan that we are paying on. Right now it is a secondary focus until we can snowball the vehicle payment into it.
I single this one out because I think it's vital for most everyone to have. Especially if you have a family. The loss of income (if you are working) could be really devastating to your spouse and/or kids. You can get a 30-year term life policy for a very reasonable monthly cost.
This is for 3 of us and I'm not really thrilled with it – but I also see it as a “necessity” of the times we live in. I'm very interested in looking more closely at the Walmart Family Mobile plan that Charlie reviewed this summer.
So there you have it. I mainly did this for two reasons: 1. I'm visual person – I like to see graphically how we spend our funds from time to time and 2. I hope that it gives you some helpful reference for comparison OR at least provides some sort of entertainment value.
What does your pie look like? Or, what might it look like in percentages? (if you are so bold to share)