Sunday, November 30, 2008

Who Moved My Cheese?

Remember a couple of posts back when we chatted about my annual check-up? Part II of that check-up is analyzing who moved my cheese ... out of my pocket ... and into theirs. Here's the snapshot:

Investments......................30%
~~Charitable Contributions (yep, I consider them investments), Retirement, HSA, Non-Retirement Savings & Mortgage Accelerator

Housing.............................26%
~~Mortgage, Utilities, Lawn Care, Pest Control & Cable

Taxes and Benefits.............25% (single w/no kids, what can I say)
~~Fed & State Taxes, FICA, Medical, Dental, Vision, FSA & Parking


Personal..............................9%
~~Personal Care, Blow & Vacation


Car......................................6%
~~Insurance, Maintenance & Gas

Food....................................4%
~~does not include eating out, that is allocated as "blow"

Looking at this snapshot tells me a few important things.

  1. My spending is in line with my personal values. It's important to me that I not only invest in myself but that I invest in others as well. Now that I only have a mortgage, I have more resources to fund my dreams and passions, give to causes and organizations that are near and dear to my heart, as well as give to individuals who may be in need.
  2. I literally live on less than 50% of my income. Excluding investments and taxes, my living expenses account for only 45%, or only 36% if you exclude the "personal" line item. HOT DOG!
  3. The 9% I spend on yours truly is absolutely okay. I worked hard to pay off my debts and implement a financial plan that would allow me to win with money. I've been on both sides of the fence, a miser and a spendaholic, but now I'm at a healthy balance. For about 20 seconds I thought about reducing my "personal" budget to pay off the mortgage even faster but 21 seconds into it I completely abandoned the thought. I'm all about preparing for tomorrow, but I'm also about enjoying the journey. Okay, I couldn't resist, here's a quote for you "The journey is just as important as the destination," author unknown.
Do you know who moved your cheese? It's okay if you don't like who's moving your cheese now, just be sure to put a plan in place that will help you get where you want to be. I began my journey in June 1999 and failed two times before I could finally declare victory in February 2006 (if you haven't already, read http://mymoneychat.blogspot.com/2008/11/my-wealth-building-strategy.html for more details.)

2 comments:

Christine said...

You sound like a Ramsey fan (because of the "Blow" and bolded "con" in consolidation). Could I be right?

I just compared my percentages to his recommended in a new post. And I see I need to reshuffle.

Also, as I check out your blog (I am glad to have found and will be marked in my blogroll)... you have done a fantanstic job! Especially living on less than 50% of your income. I can't wait to say I do the same!

Ms. MoneyChat said...

LOL. Yes, he and I definitely share many of the same personal financial philosophies.

I worked really hard and I'm still working hard, still living like no one else so later I can live like no one else;-)

Thanks so much for the link love!