Wednesday, May 14, 2008

How we spent our money in 07

When we were doing our taxes about two months ago, I thought it would be interesting to go through our records and monthly spending plans to see where all our money went. As I look through this, I'm glad about some things but disappointed about others.

Taxes - 15.72%, this doesn't include our tax return, this was money taken out of our initial paychecks
Retirement - 9.9%, not quite the 15% Dave Ramsey recommends, but okay
Giving - 10.6%, to be honest I'm not real proud of this. I realize that whenever the day comes that God blesses us with a child and Erin stays home, we'll really be struggling just to tithe but in the meantime this should be higher. I need to track this closer this year.
Utilities - 4.6%
Savings - 0%, yep, you read that right, we didn't put anything into savings. We do have savings but we didn't add to it last year.
House Payment - 30.5%, this is why we didn't put anything into savings last year. We bought our house with the 80/20 split, little did I know the money we saved by not paying PMI would be doubled with the 9% interest rate on the 20% loan. So, we worked our tails off to pay off most of the 20% loan, then refinanced into a conventional loan.
Refrigerator - 1.6%, don't know why this is its own category, but we had to buy a new fridge. Erin's dad got us a good deal.
Home Repairs/Maintenance - 1.6%, we did a bit of work on the house
School Loan - 2%, this is our project this year, to kick Sallie Mae out of the house (after saving up enough for IVF)
Eating out - 1.3%
Groceries - 4.4%, Americans pay a smaller percentage of their income on groceries than any other country in the world (along with Western European countries)
Gas - 2.8%, that's likely to go up a bit this year
Car insurance - 1.5% and we got nothing for it, the hit and run wasn't worth the deductible to fix it
Car repairs - 4.1%, All the money I made from coaching (and then some) went to fix our cars, sure am glad they ignored my offer to coach for free
Vacation - 3.9%, we greatly value travelling. We want to enjoy it now because whenever the blessing of a kid comes, it's Grandma and Grandpas and if we ever do save up enough money, it will be some kiddy place like Disney World (ugggh).

That leaves 5.48% for other stuff not on this list

This is a good exercise for me to do, some things I need to change over this next year and some patterns we want to stick with.

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