July 05, 2010

Financial Retrospective

I've been tracking my finances rigorously since about 2005. I thought it would be fun to take a look at some expense comparisons for my financial 'eras'. Of course, the big capital expenditures are not included in the figures, they're only described. My gross expenditures have more than doubled over the last 6 years! Meanwhile, I haven't really been spending that much more - the extra money is really going into housing costs.

2005 - $1300/month
Apartment living at its finest! No taxes, no utilities, no car. Rent was $750/month leaving only $550 to live on, so I was cutting it pretty close to the bone and saving up a downpayment for a house.

2006 - $2500/month
I bought my house. All of a sudden, there are utilities, taxes and insurance. After the mortgage was paid, I was left with about $900 to live on. Utilities, taxes and insurance totalled close to $500, leaving $400 to compare to my $550 when I was living in my apartment. This isn't to say I didn't have the occasional month when I splurged on something.

2007 - $2700/month
Adding car expenses... this year, I bought my parents' 2003 Rav4. Adding Insurance and minor gas expenses brought the total up. This held steady through 2008, 2009 and most of 2010...

2010 - $3000/month
What can I say... this is lifestyle inflation. After noticing that I was perennially going over my budget for several months, I gave in to reality and increased my 'living' budget by about $250 (groceries and fun) and inflation on various items like insurance (which previously had been going down as I got older, offsetting inflation) and utilities took care of the rest. I do feel much more relaxed with the increased headroom on the budget. It'll take a bit to see if I'm actually sticking to it.

Posted by JAY at 11:26 PM | Comments (0)