What is your annual spend and income? Have they gone up over time?
Saw some guy on another post say he spends over $300k/year (but makes over 7 figures annually). Curious to hear what your annual spend breakdown is on stuff like rent, food, clothes, vacations miscellaneous etc?
And what income are you making to support that?
Based on the most helpful WSO content, I can share that I use an Excel template to track my annual expenses and sources of income. I list out every single monthly expense I can think of under expenses, such as rent-related, transportation-related, medical, grocery, personal care, etc. I do not include discretionary (not mandatory) spending. Under income, I list my AFTER-TAX income.
To calculate net income, I subtract the total annual expenses from my total annual income. Then, I set a savings goal. For example, I set my goal (without bonus) to 20k. If you divide by 12, that is the average amount you have to save each month (ex. ~$1,650). Subtract that annual savings goal from your net income and the remaining balance is your annual "Discretionary Spending" total for going out, big purchases, etc.
Each month, I immediately move the set savings to a high-yield savings account (~2% interest) so that I can build up a comfortable reserve for emergencies or other large expenses.
As for the breakdown of my expenses, I'm afraid I can't provide a detailed breakdown as it varies based on various factors. However, I can share that there's an age-old adage that your monthly housing expense should never be above 30% of your after-tax income.
Remember, everyone's financial situation and spending habits are different, so what works for me might not work for you. It's always a good idea to tailor your budget to your specific needs and goals.
Sources: How much have you saved?, What percentage of your after tax income is devoted to housing?, Is my IB analyst personal budget realistic?
Currently a VP3. No kids yet. Estimating that I spend roughly ~150k/year
80k on rent
25k on food
10k on clothing
20k on vacations
15k on other/misc
My base salary is 275k and wife makes 200k.
Is that combined spending or how do you split the expenses with your wife?
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