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Email this7:58 pm
February 17, 2013
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So I've been using the same financial program since 1996, so I'd thought I'd do a few custom reports to see what I've been spending over the last 20 years. Some of the accounts I've closed and deleted so dates will be noted and totals will probably be higher , but I present for your amusement the results:
Groceries 1996: $86,455.08
Entertainment 2000: $15,150.68
Dining out 1996: $26,430.79
Medical not
Covered by Ins: $8,488.69
Telephone $11,426.18
Cable (since 06) $8,255.95
Liquor: $14,439.38
Utilities 2006 $15,811.00
Vacation 2007 $33,136.79
Household: Furn
Maintenace etc: $49,338.27
Clothing: 2001 $9,829.49
Automobile: $92,588.66
Incl. all categories -
Mosaik Mastercard
2006: $195.744.33
AMEX 2006: $39,806.75
Those are the hi-lites. Keep in mind it doesn't include anything I used cash for nor any fo the credit cards I've closed and deleted.
9:00 pm
October 21, 2013
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It would be a sobering experience for all of us, I'm sure, and certainly answers the question that sometimes mystifies, "where did all the money go?"
I notice you did very well on the "car" category, assuming there were not additional expenses in cash or through a discontinued credit card. CAA usually says it costs about $10,000/yr to own a motor vehicle, although I haven't checked their stats in some years. You have spent about half of that, which clearly shows it can be done.
Thanks for sharing.
Is there anything you have learned from this that you'd like to share, or advice you'd like to offer?
10:52 pm
August 5, 2014
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Loonie and Rick, most of a family's money goes to income taxes and mortgage payments. I would say this is about 70% to 75% for most people.
11:21 pm
February 17, 2013
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Loonie: I do a lot of basic car maintenance my self so that probably helped a bit.
As I mentioned, there are a few accounts/credit cards I've deleted from the program (Hsbc Mastercard, MBNA Mastercard. TD Visa, HSBC checking, etc) so I'm sure that all the categories are low ball.
The only advice I gave to my kids (or anyone else that asks) is pay your self first. If you take savings and move it up the list to first priority, it's funny how the rest all just seems to take care of itself. A coworker once mentioned she couldn't manage put any money away for emergencies, even though we got significant raises every year for the last 4 years. When you pay all your bills then put whats left in savings, it's easy to spend it all. If you put your raise in your savings first, about 50 bux a week, then live off the rest, you still manage to get by quite nicely and have a bit of a nest egg over time. Always took half of unexpected windfalls (income tax refunds, gifts, inheritances, etc.) and added it to the savings. 1/4 went to bills or the accounts saving for bills/emergency fund, and 1/4 to have fun with. Pretty basic stuff, but, surprisingly, not such common knowledge.
Valuable knowledge I've gleaned during the last 40 years of life:
EVERYTHING costs more than you expect. Especially housing/cars/kids
If you wait until you can afford kids, you will never have them
Don't live beyond your means...budget (including savings) and live within it
Credit card debt will put you under, keep you under, and if you start to get out of debt, they will offer you more credit. Don't charge more than you can pay off EVERY month
Round your mortgage payment up to the nearest 25/50/75 (whatever you can comfortably afford) per month over and above minimum. It adds up and you will pay off your mortgage years earlier and save thousands. I also paid an extra thousand per year on top of that.
Save and pay cash rather than finance smaller items (cars, furniture, renos, vacations, insurance). Even if you have to open 4 or 5 separate savings accounts to keep track. Monthly payments can quickly eat up your income and if it's interrupted (illness, accident, injury, strike) you can find yourself in serious trouble very quickly
Don't count on others for your financial well being (inheritances). More than one person I know got slapped pretty hard by reality when the will didn't exactly turn out as expected.
So that's my 2 cents on finances. I won't be a millionaire, but the philosophy served me well and looks like I will retire comfortably in a few years.
11:44 pm
August 5, 2014
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Rick, alot of good advice and life learning experience and lessons. I would add too that try to take advantage of RRSP's, TFSA's and other tax advantaged accounts as much as possible when a good cushion of savings is put aside, 9 months to 2 years depending on life circumstances, comfort level, type of job etc.
We know some people after the stock market, economic crash of 2007, 2008 that have 4 to 5 years in safe, boring higher interest savings accounts, term deposits, cashable and redeemable GIC's, 18 month GIC's, GIC's of 1, 2, 3, 4, 5 year terms.
Also, try to never use high interest debt like credit cards, payday loans, furniture loans etc. to act as a financial bridge month after month. This can really get people into trouble that builds up over years and is hard to dig out.
Finally, buy a house or primary residence that you really need and can more than afford. A house is not an investment. It is an asset that can be sold later for more or less of its original value.
12:21 am
October 21, 2013
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Jack Manning said
Loonie and Rick, most of a family's money goes to income taxes and mortgage payments. I would say this is about 70% to 75% for most people.
This depends, I think, on what stage of life you are at and how wealthy you are.
It's not remotely true of my own situation.
8:50 pm
August 5, 2014
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Loonie, it is not in our case either since our mortgage is going to be paid off in about 18 months. Also, We are maxing out RRSP's and TFSA's, RESP's annually which reduces and keeps our yearly income taxes lower in the first place.
I guess if someone or a family is renting instead of owing a house, condo etc. then it is rent and income taxes that make up a big chunk of at least 50% to 60% for many Canadian families.
For low and very low income Canadians they probably spend anywhere from 80% to 85% on rent, groceries, transportation.
My example above was talking about the middle class to upper middle class that are not retired or near retirement and bought into a big house, primary residence making mortgage payments for 20, 25 years at least.
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