Image by KittyCanuck via Flickr
20’s Finances wants to know where bloggers spend their money. For this post, I have assumed that my net income after taxes and not including bonuses (with a company not doing so great, there won’t be many of these anyways) is equal to $1.00. I then put all of my expenses on that. For things like housing, I am only considering my share of the expenses.
Housing
We live in an eastern city and bought after several years of price increases, so we have a rather expensive place. On the bright side, we are paying less in taxes than those living only a few kilometers away, and since we are two the burden is bearable. This cost, however, doesn’t include welcome taxes and the cost of buying new furniture. For this year, this cost is probably going to end up more like $0.45 to $0.50.
- Condo fees: $0.03
- Mortgage: $0.17
- Taxes: $0.05
- Utilities: $0.03
- Total: $0.28
Transportation
I pay less than I used to, as I decided to purchase my car out instead of leasing a new one. I mostly only drive on the weekends these days and take public transportation during the week. I bought out my car this year, which would be another $0.30. I am only including a portion of this below since the cost should be amortized over the life of the car.
- Public transit: $0.03
- Gas: $0.02
- Maintenance and repairs: $0.02
- Depreciation: $0.05
- Total: $0.12
Food
We don’t eat out too often; mostly for special occasions. We both like to cook at home, which is a good thing as far as the pocketbook is concerned!
- Groceries: $0.06
- Eating out: $0.02
- Total: $0.08
Insurance
- House & auto insurance: $0.03
- Work private insurance (medical and life): $0.01
- Total: $0.04
Personal care
Some expenses need to be paid out of pocket, like prescriptions, certain tests, etc…. I’ve accounted for this cost below, as well as cost for basic personal care items like toothpaste, deodorant, etc….
- Out of pocket health expenses: $0.01
- Basic stuff: $0.01
- Total: $0.02
Entertainment
- Total: $0.02
Savings
The company matches my RRSP contributions, so that is essentially free money. Forced savings is additional money I transfer from my chequings into a savings account, until I decide how I want to use or invest it.
- RRSP savings: $0.07
- Company match: $0.08
- Forced savings: $0.30
- Total: $0.45
Other
- Travel: $0.08
- Charity: $0.02
- Education: $0.04
- Total: $0.14
I also spend a bit more on various items, and on charity. Seeing charity in cent terms makes me feel a bit cheap. I should step this up next year once the welcome tax and other stuff is out of the way and taken care of.
These totals also don’t quite add up, but if you subtract the company match (since that is bonus money) and the rounding errors, then you end up close to $1.00.
How about you? Check out the post at 20’s Finances and join in!
Nice work – very aggressive savings! Thanks for joining the challenge!
Only aggressive since this year! A buffer is very important IMO, as it gives you choices.
Very good job indeed. There is definitely no waste and you sure are maxing out your savings. Great job.
Thanks Miss T! Hopefully it’s a good buffer for next year.
Very impressive savings rate, especially when you factor in your love of travelling and housing situation!
A big part of it is due to the match though, so I’m lucky that I’ve been able to take advantage of that for the past 3 years! I’d probably have been able to do better than that if not for the housing situation haha.
Wow, you do really well, especially in the transportation category. Is your savings in transportation due to higher costs in housing?
Really? I still considered it somewhat on the expensive side. 😉
The higher housing costs definitely do play a part, though. If we saved 30% on housing transportation costs would be somewhat higher; maybe not so much higher that it would end up at the same expense level but you also have to consider in commute times and the pleasantness of the commute.
Right now it’s very easy for both of us. I jump into a subway and I’m there in 30 minutes or less. She walks for 5 minutes and she’s there. 😛 With the cheaper housing alternatives we’d have to take the bus, wait outside in the cold, etc…
That’s a great savings rate. I love how you call it “forced” savings. I think it will be interesting to monitor how these proportions will change over time.
Haha, definitely. If I transfer the money out to another account, then I’m a bit less tempted to go ahead and spend it. Also, it’s extra work to re-transfer it back in so this helps keep up the high savings rate.
I need to be as aggressive as you with my savings!
Take away the company match, and it’s only about 15% – 20% pre-tax? Surely you guys can do that. If not, then trim up those expenses and work extra hours on that side income! 🙂
That’s a really cool way to break down the spending. Perfect for a pie (loonie) chart.
True, didn’t think of that. That would have been a nice addition.
Great way to break it down! I’ve never broken my categories down like that. Now you’ve got me thinking!
Looking forward to it!
Fantastic savings rate, keep it up for a few years and you should be sitting on a nice cushon.
Next year will be interesting but we’ll see what happens!
It’s interesting how different mine looks. Housing is lower but housing repairs are higher. Daycare is my biggest expense I think I pay a ton more in insurance as I have all kinds of policies for health disability and life policies as well. A lot changes when kids are thrown into the mix.
Yeah, I would expect my expenses for that to go up as well. Right now we have pretty basic insurance as far as that stuff is concerned, but past marriage & kids? Definitely will need more.
Outstanding savings rate!
You’re doing pretty well with your passive-income nest egg, too. 🙂
This is completely different and enigmatic way of presenting your expenses.
However this is less exciting, as we are missing the actual numbers.
Why did you decide to do it this way?
Thanks, FI! Presenting it this way was part of the 20s Finances challenge, and I’m not yet totally comfortable sharing actual numbers. 😉
What are ‘welcome taxes’?
They’re basically a surcharge on real estate transactions and amount to the same cost as 1 year of regular property taxes, so the first year you basically have to pay the property taxes twice. 🙁
Kevin, Thanks for sharing. YOu should feel quite proud!!! Nice job and lots of work to figure it all out 🙂
Thanks Barb, I appreciate it. I do need the kick in the butt too, every now and then. I really owe it all to the great influences I’ve had in my life, though. I never wanted to be like the people I see mucking their lives up, but at the same time I didn’t have a guiding light to learn from. That’s what I love about sites like yours, because you can be that guiding light.