I finally have two solid years of financial data recorded on Mint, which means I can compare year over year data and more thoroughly analyze and understand my spending.
The data is not pleasant. I DID have a significant increase in income over the last two years, but it hardly justifies the nineteen percent increase in overall spending in Year 2 (see below for details).
I actually decreased spending in a couple of categories (travel, giving, utilities, and "other"), but every other category increased - and shopping and entertainment both more than doubled! I already wrote about my horrifying food and dining spending, which increased 41% in Year 2 on Mint.
The worst part is that I was spending freely in Year One and should have decreased my spending from there - my Year 2 spending was just outrageous!
A few highlights:
- Home (incl utilities/cable/internet) increased from $17,686 to $18,051.
- Food & Dining (incl bars & alcohol) increased from $6,577 to $9,297.
- Shopping increased from $4,191 to $8,260.
- Travel decreased from $4,907 to $4,587.
- Giving decreased from $3,854 to $3,559
- Health & Beauty increased from $2,058 to $3.243.
- TOTAL SPENDING increased from $44,319 to $52,792.
Despite my reckless spending, I have managed (thankfully) to continually contribute at least 10% of my gross income into my Roth 401k. I've only been with my company for three years, and my 401k is worth almost $15,000 today, despite the steep market declines over the past year.
I also picked up 2 rental properties in the past two years (none of my investment real estate spending is reflected in the Mint figures).
-But It's Not Good Enough
While my savings have not decreased in spite of real estate start up costs, they also have certainly not increased - despite my best laid plans year after year. With 2 rental properties I need liquid reserves more than I need retirement savings at this point. I put a big chunk into it every month, but over the course of the year I dip into it to pay for shopping sprees and vacations.
The Plan
Obviously some of my current spending needs to be redirected to my EF. "Shopping" and "Travel" (which averages nearly $11,000 a year) should be slashed by a third. Food and dining will be cut by 20% (read about my food and dining budget here).
That should free up $6,000 for my emergency fund over Year Three, putting me comfortably into the "6 months of expenses" savings zone.
2 comments:
I love Mint. I log in nearly every day, maybe several times a day. My data is not pleasant but I don't hide my head in the sand. I like to examine it, ugliness and all. I'm a little weird about categorizing every transaction to my exact specifications (I created some sub-categories and don't use many others Mint supplies, and it's also very funny, when for example, apartment rent is mistakenly labeled by Mint as "Entertainment: Arts.")
Looking at my expenses on mint so far this year really takes me aback. It surprises me how much I actually spend, even when I don't spend a lot on extras. My student loan payments, rent payments, and transfers to my retirement accounts top the list. But it still seems like a lot!
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