What Did You Spend Last Year?
we like to know how we compare to others
If I were to walk up to the average person and ask them what they spent in 2016, they would likely look at me like I was insane. Which I mean, yes, I am. But not quite for the same reasons they're thinking.
I spent $35,424.60 in 2016.
And I know where every single dollar of that amount went.
If you're reading this and thinking, "tell me more omg", then please feel free to sign up for my newsletter (shameless plug), because I think I could tell you a lot of fun stuff in 2017. Including weird experiences that I seem to attract.
If you're reading this and thinking, "why would I care what you spent?", that's totally fair. But if I know anything about people, it's that we like to know how we compare to others.
And I'm alright with being your person (and divulging way too much about my personal life on the internet).
One of the best ways to prepare for a new year of financial success is by completely reviewing your annual expenses from the prior 12 months.
How much did you spend on travel, clothing, groceries, and beyond?
Wouldn't it be easier to make a budget if you knew how much you'd actually need to allocate for each category? Uh, duh guys.
All it takes is a thorough (and sometimes long) review of your statements. Even easier? Track your expenses throughout the year, and then at the end you're basically done all of the hard work. High friggen five.
But me? I like to wait and see the totals at year end. Keeps things exciting. *winks aggressively*
So, without further ado:
HOW MUCH DID I SPEND IN 2016? (From annual, broken down into monthly & daily averages)
Entertainment Annually: $3131.05 Monthly: $260.92 Daily: $8.58
Clothing Annually: $933.33 Monthly: $77.78 Daily: $2.56
Dining Out/Coffee Annually: $1884.81 Monthly: $157.07 Daily: $5.16
Groceries Annually: $1539.46 Monthly: $128.29 Daily: $4.22
Vehicle Annually: $1535.83 Monthly: $127.99 Daily: $4.21
Rent Annually: $8400.00 Monthly: $700.00 Daily: $23.01
That is a total of $1452.05 a month. Meaning, I spent $47.74 of my income per day in 2016.
Not Included are (my other boring) fixed expenses: * Bills, which average $350/month (cable, internet, cell, insurance) * Savings, which averages $1000/month * Travel (Kelowna, Sicamous, Canmore, Vegas, Edmonton, Vancouver, Toronto, Phoenix), which averages $1000/trip * Business (website, video equipment), which averages $200/month
So, what do you think you spent last year?
By dissecting your expenses, planning for financial goals becomes a fun challenge rather than a difficult chore.
For instance, I now know what percentage of my income I should be able to save. I also know which areas of my budget I can trim to more easily accomplish my savings goals.
Small financial resolutions for my 2017? * Cut my cell phone bill in half * Cancel my cable (which I only had because it was free for one year) * Better insurance coverage
Big financial resolutions for my 2017? * Save for a house (and then buy one) * Increase my overall income * Trip to Portugal
What are your financial resolutions? Have you calculated your expenses from 2016 yet? Let me know in the comments!
PS: Thanks for baring with me while I took a couple weeks off. It's good to be back.