This time last year, I was writing about the shock of calculating our 2016 spending total. We had spent nearly $80,000, which didn’t even include housing costs. Having no idea what was possible, I set us the goal of reducing our spending by 10%, excluding a planned holiday. Our stretch goal was to reduce our spending by 10% overall. We achieved our stretch goal, with a total reduction in spending of 10.75%. Here I will compare each of our spending categories to determine where the savings came from, starting with a cool Sankey Diagram. I recently learned of this from J.D. Roth at Get Rich Slowly, so of course I ... Show Me More!
After our expensive year in 2016, we set ourselves a goal to reduce our spending by 10% in 2017. We want to do this because it has a double effect. Firstly, it frees up more money to invest for our future. Secondly, if we can live on less, then it brings that future much closer. In 2016, we spent $80,000. To generate that using passive income and the 4% rule, we would need $2,000,000 invested! via GIPHY How did we do for January? Our daily spending rate goal was $194.34. We only spent $131.40. One month down, but I’m not becoming too cocky – February only has 28 days, and we ... Show Me More!
The Enough Time Machine has a full 12 months of recorded expenses in its data log, so it is time to command “Computer! On screen!”, run an analysis and determine what we can learn from all of those numbers. We use YNAB to record all of our expenses, and now they have some nifty built in reporting features, it is easy to drill down and listen to the stories that our spending is telling us. Spending Story: Horror I still can’t quite believe that we have spent nearly $80,000. I’m starting to understand why the barely dressed blondes neglect to run away when the scary man with a knife comes ... Show Me More!
I love seeing how other people budget, getting down to the nitty-gritty of their categories and numbers, but I don’t feel it is fair to gain value out of what others are contributing without contributing something ourselves. As promised, here is the eighth and final Budget Breakdown for the Enough Time Machine. This represents how much we budget per month, not necessarily how much we spend. In this concluding week we are looking at Savings and Investment. Savings vs. Investment The way that I allocate money to our savings/investment buckets is by thinking of them in terms of timeframe and known spending. Savings are for particular, identified items, and the money is to be spent as soon as ... Show Me More!
I love seeing how other people budget, getting down to the nitty-gritty of their categories and numbers, but I don’t feel it is fair to gain value out of what others are contributing without contributing something ourselves. As promised, here is the seventh Budget Breakdown for the Enough Time Machine. This represents how much we budget per month, not necessarily how much we spend. This week we are looking at Quality of Life and Fun! Now we are getting to the more rewarding part of our budget. As I said in my previous post, your budget is not out to make you miserable. If you have the capacity and all of your obligations/needs covered, it is important to have ... Show Me More!