As the father of a young family, I have taken a fanatical interest in my household finances. Curious whether I could squeeze more juice out of our budgetary lemon, I took a look at our monthly expenses as a percentage of our take-home income.
To my astonishment, I found that 84% of our take-home income goes to essential expenses. By “essential,” I mean items which cannot be cancelled or reduced. These are things like rent, fuel, insurance, and groceries. We already minimize these expenses as much as possible.
To my further astonishment, I found that all of the elective expenses in our monthly budget, things like Netflix, hosting my websites, and maintaining a subscription to Star Wars: The Old Republic, total up to a mere 3% of my take-home income. If I really cut to the bone and went without my entertainments and hobbies, I would hardly save enough to speak of. This proves problematic, because I have outstanding liabilities which must eventually be met, not to mention things which I would like to save for – including stuff like retirement.
I hold down three jobs. My wife has two. So we’re not exactly slacking. Be that as it may, I figure we need to conjure up a way to bring home a certain amount more per month in order to advance beyond treading water to actually getting somewhere.
As it turns out, I already earn more than I figure I need. The only problem is that I don’t get to keep it. It gets confiscated before I ever see it and sent to state and federal government.
If I could actually use what I rightfully earned last year, I would be able to pay off every outstanding bill. I would be able to replace my aging laptop with a decent machine that could get me through the next five years. And I would have enough left over to put a serious dent in my auto or student loans.
How about you? What could you do with the money you lost to government last year? What happiness could you pursue? What values could you secure? Leave a comment below.