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Home > Where does the money really go? True cost of living!

Where does the money really go? True cost of living!

December 17th, 2008 at 03:59 am

After being shocked at how much I spent on clothing in 08, I decided that in 2009 I won't be surprised by how much money I spend on anything. I can still spend on things that matter to me, but I will be totally aware of my choices and their cost.

So I made a very detailed list and will keep meticulous track of it - recording everything I spend each day. If done daily it won't take more than 5 min. And I will satisfy my curiosity at how much different aspects or our life cost. As it turns out, just estimating is not very accurate.

So here are my 2009 spending categories:

electric bill
gas bill
cable bill

eating out 2 of us
eating out with friends
take-out
lunches and breakfasts at work
alcohol

groceries:
dairy
veggies
fruits and berries
sweets
all other food
household supplies (bounty, bulbs, etc.)
hygene (toothpaste, shaving, shampoo, etc.)
cleaning supplies
laundry
dry cleaning

furniture, decor
house other (linens, utensils, etc.)

clothing
footwear
accessories
grooming (haircuts, nails,
make-up, skincare)

vacation
weekend getaways
sports
skiing
entertainment - all other
electronics

Medical/dental
Gifts/charity

pet food/litter, supplies

car insurance
gasoline
tolls
tickets/fines
car maintenance
car repairs

savings retirement
savings non-retirement

I will keep 2 columns "current month" and "year to date".

I view this as a kind of personal finance experiment.

And I think really knowing how much I am spending will help me in cutting down.

8 Responses to “Where does the money really go? True cost of living!”

  1. whitestripe Says:
    1229490551

    it does. i have been tracking my expenses for two years (but had 'a break' a couple of months which was just plain silly) and once you see it add up in the weeks and months, you go 'oh my god!' and start thinking about it everytime you hand over the money.

  2. gamecock43 Says:
    1229517256

    I started tracking my expenses 3 months ago and it makes a world of difference!! It's a pain in the butt the first month- but once you see the reward of tracking the expenses- the next month becomes a habit.

  3. creditcardfree Says:
    1229522166

    You came up with excellent categories, obviously, tailored to you. I don't go skiing...so mine would be zero!

  4. Koppur Says:
    1229531621

    Looks like you have a great plan. I'm starting to track my spending as of the new year. Oh, did you forget a phone bill on there?

  5. fern Says:
    1229542389

    Smart girl! You're right, simple estimates aren't enough. I've been recording all my expenses for probably 15 years! Yes, i really have! It is extremely revealing and rewarding at the end of the year to tally up all your monthly totals and see where you're over-spending, and where you're not.

    Believe me, once you get into a routine, you will just automatically make sure you have receipts (or make your own) for every purchases. It'll become second nature.

  6. dividing the dime Says:
    1229560003

    I've done this the past few years, but I have too many 'miscellaneous' categories by the end of the year. Not a good picture. And such a cop-out. The concept does work, though, and for me it can work better. Like you, I'm going to get more specific and do the same, track current month and year-to-date. I'm also going to have a target amount to spend for the year. I normally do a monthly budget, but a yearly goal/budget might work better in some areas. Great idea! I'm inspired!

  7. fern Says:
    1229608082

    I track my expenses and review them monthly, but year-end is very revealing.

    I agree that if you have too many things ending up in Miscellaneous, you need to make more categories, otherwise the exerecise of tracking your expenses is not very helpful if you just lump it in one pot. the mimscellaneous category is an easy way to accumulate "hidden" expenses.

  8. Nika Says:
    1229621156

    Yes, I add new categories so that too many things don't go into miscellaneous. For example "parking tickets" is now a category of its own. This adds up fast, with each ticket being $120 or $150, or a "tinted window ticket" being $120 per window! We don't take chances when parking, but they get very creative and get you with something new.

    Koppur, home phone and internet are included in the price of cable package. Cell phones - the whole extended family is on one plan that is paid by the matriarch - it is kind of a tradition/gift. Very generous of her.

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