What do you spend the most money on??

[lrjohnson]

Re: What do you spend the most money on??

I checked my figures. I only ever look at my net income in my Quicken, so my retirement contributions and taxes aren't accounted for. So I ran the numbers and I am a happy camper!

savings 40.3%
tax 21.7%
all other 19.0% (while on the challenge)
rent 11.3%
retirement 7.7%

[Ima saver]

Re: What do you spend the most money on??

Well my dh spends a lot of money on tools. He is always needing something for his business.

[shelbylovesmelby]

Re: What do you spend the most money on??

My dh too, always needs a tool for work or around the house. What really stinks is when someone swipes them from his tool box when he's not looking or breaks into his tool box when he's not @ work. Wonderful Eh?

[Ima saver]

Re: What do you spend the most money on??

Yes, somebody stole a tool that costs almost $1000 this year! Then we loaned a guy a new $300 floor sander and he ruined it and would not pay to get it fixed. We spend a fortune in tools every year.

[cschin4]

Re: What do you spend the most money on??

Taxes are not spent but taken. If you are asking who confiscates most of your income, that would be the gov't. As for actual monthly expenditures, I would say groceries top the list.

[LuxLiving]

Re: What do you spend the most money on??

Spending? Top three goes:

Mortgage 13.7%
Groceries 11.0%
Insurance 10.3%

Savings? Top three are:

Money Market - Emergency 10.6%
401-K 9.0% plus some matching (will go 10% Jan'07)
IRAs 6.8%

~LuxLivingFrugalis

[Ima saver]

Re: What do you spend the most money on??

We spend way to much eating out!!

[simpleselu]

Re: What do you spend the most money on??

Currently, housing but it will be our debt snowball in three months.

[ruthie]

Re: What do you spend the most money on??

Rent, for sure. It's 27.5% of our gross income and 50-60% of our monthly expenses. I guess that's what I get for living in San Francisco!

Next is taxes, followed by groceries.

[Gruntina]

Re: What do you spend the most money on??

Ruthi - Your actuly doing good for rent in the Bay Area. Its high I know... I do have friends that pay at least 70% here just on rent because they can not find higher paying jobs.

California has high sales tax. I never broke down the taxes I pay for things. I put total amount paid for items under certain categories in my budget but froke it down with the taxes. I am almost too scared to find out how much I spend each month on sales taxes alone. It varies from month to month depending on what purchases and the cost of purchase I made that month. Maybe its time for me to find out how much and may motivate me to do less shopping on "want" items.

[ruthie]

Re: What do you spend the most money on??

Ruthi - Your actuly doing good for rent in the Bay Area. Its high I know... I do have friends that pay at least 70% here just on rent because they can not find higher paying jobs.

Yeah, I know it's not too bad for SF, but it is a tiny studio! We like it well enough though - at least well enough to stay and not spend more on rent! Oh, and it does include water, electric and gas, which is really nice.

California has high sales tax. I never broke down the taxes I pay for things. I put total amount paid for items under certain categories in my budget but froke it down with the taxes. I am almost too scared to find out how much I spend each month on sales taxes alone. It varies from month to month depending on what purchases and the cost of purchase I made that month. Maybe its time for me to find out how much and may motivate me to do less shopping on "want" items.

Oh, well, I meant income tax and all those things deducted from your paycheck. It's already enough work breaking down my tracking without breaking sales tax out too! Though it is nice that there is no sales tax on food here in CA... my grocery bill would be even higher!

[amberfocus]

Re: What do you spend the most money on??

Housing. Rent is obscenely high. I was in such shock when I was first looking for an apartment. If I wanted to live without a roommate, I'd have to shell out 1/3 to 1/2 of my take-home salary. Cheaper places are not only rare (and oftentimes crappy), they get eaten up before you can blink.

Interestingly enough, groceries are at the bottom of my expense list.

I don't count taxes because it's not an "expense" that I can control.

~mimi

[LuxLiving]

Re: What do you spend the most money on??

Hi Mimi,

I've been trying to tell my teenage son who is chomping at the bit to move out about the high cost of rent and that he needs to find a buddy to share the rent!! Of course Mom knows nothing and he knows it all. Oh well, life is sometimes all about the rude awakenings!!

I don't know where you're at financially, but I was really surprised about how putting money back into hubbies 401-K helped us out tax wise (see some of David Bach's books in the library for free - he explains the concept in the most understandable way that I've read.) Go online and find one of those nifty calculators that will help you figure out exactly how much your paycheck would be reduced if you have 401-K available and start using it.

The amount coming out works out to less than you might think if you've got some employer matching funds! My husband was convinced we couldn't do it, so I started him out by deducting only 1% and have slowly moved him up till we are now at 9% with projections to go to 10% in January. We have to - he's one of the ones who counted on a promised pension, when zip-zap-kapowy - it was gone!!

Mimi - in my state groceries are taxed - UGH!!! "Can't eat taxes" I was just complaining to The Hubster last night! Do they tax your groceries where you live??

So -- anyway, about twice a year when visiting relatives near our state border, I'll take a couple of hours out of our visit - run across the state line and do a great deal of bulk buying w/o taxes.

Some suggestions when hiring on -- see what benefits you can get outside of the tax envelope - such as transportation. If they provide you a car, you're not the one paying the tax & excise on it. Also try to come up with your own home business and get loads of deductions that way.

In our state certain stores within certain communities have No Tax Sale Days when there is a moritorium on State and Local taxes!! YEAH! I plan ahead and make Christmas shopping a priority on those days. Usually this is in our suburban areas away from the Metro, but still worth the drive if you've saved ahead.

Good luck in your financial pursuits!!

-LuxLivingFrugalis

P.S. Yes, I agree, taxes are hard to control, but don't give up entirely. Find ways to work around it!! Make a game out of keeping the tax man out of your pocket!!

[autoxer]

Re: What do you spend the most money on??

P.S. Yes, I agree, taxes are hard to control, but don't give up entirely. Find ways to work around it!! Make a game out of keeping the tax man out of your pocket!!

Absolutely. Taxes should be treated as an expense. It is one of the largest expenses and there are many ways of lowering your tax liablilty, just like there are ways of lowering all of your other expenses.

[amberfocus]

Re: What do you spend the most money on??

Hi Mimi,

I've been trying to tell my teenage son who is chomping at the bit to move out about the high cost of rent and that he needs to find a buddy to share the rent!! Of course Mom knows nothing and he knows it all. Oh well, life is sometimes all about the rude awakenings!!

In a way, it's good for your son to want to move out. At least it's better than staying at home and being a leech! At least, that's how I justify the fact that I didn't/refused to move back in with my parents after college.

I knew full well about the high cost of rent, but I was still taken by surprise. I think I assumed that I'd be able to find a good deal if I looked. But in retrospect, that was denial talking. And I did cave and found a roommate, as much as I wanted to live alone. Not only do you save on rent and utilities, you can also split the cost of furnishings and kitchen supplies. And when you don't have a car, a roommie with a car can save you from back injuries from lugging home groceries by foot. Or carpool if you both have cars and save on gas!

I don't know where you're at financially, but I was really surprised about how putting money back into hubbies 401-K helped us out tax wise (see some of David Bach's books).

The amount coming out works out to less than you might think if you've got some employer matching funds!

I have the option to start a 403B, except I don't qualify for employer matching funds. I'll be dumping loads in once I sign up for it, though. I just have to pick the company and the plan. Except I know nothing about either company or any of the plans. Maybe I'll flip a coin??

And thanks for the book tip! I'll definitely see if I can track it down.

Mimi - in my state groceries are taxed - UGH!!! "Can't eat taxes" I was just complaining to The Hubster last night! Do they tax your groceries where you live??

I'm in Connecticut. Where are you located? I believe the sales tax applies to groceries. I'm not home at the moment, so I can't check my receipts, but I'm pretty sure they're taxed. They've always been taxed...? (Wow, I really should know this, huh?)

So -- anyway, about twice a year when visiting relatives near our state border, I'll take a couple of hours out of our visit - run across the state line and do a great deal of bulk buying w/o taxes.

Ah, great strategy! I don't think it'll work for me, though, since my family's in New York, so I'll actually be paying *more* in sales tax there. *sigh*

Some suggestions when hiring on -- see what benefits you can get outside of the tax envelope - such as transportation. If they provide you a car, you're not the one paying the tax & excise on it.

Another good idea. I know there are pre-tax transportation benefits, but I'm not sure if they apply to cars. Will have to check. I don't have a car yet, but it can't hurt to know.

Also try to come up with your own home business and get loads of deductions that way.

Interesting! A home business? Is that something you've done?

In our state certain stores within certain communities have No Tax Sale Days when there is a moritorium on State and Local taxes!!

I just looked this up, and apparently CT has a tax-free week on select items in August! Hmmm... Maybe I'll finally buy myself socks!

P.S. Yes, I agree, taxes are hard to control, but don't give up entirely. Find ways to work around it!! Make a game out of keeping the tax man out of your pocket!!

Oh, I plan on playing the tax game! I'm just very new at this. I've been trying to learn, but haven't gotten terribly far yet. Thanks for the great ideas!

~mimi