My spending for this year did not go as planned.
For some context, I am 29 without children and I make over 6 figures. The only debt I have currently is my car loan because I paid off my student loans in 2020.
I thought I would spend, at max, $45K this year. My final numbers were not even close to that amount. The concerning part is that I know 2022 will be more expensive so I am really looking at my life like “Get It Together”. When I think about my spending the primary feeling I have is disbelief and bewilderment.
I feel like I could have and should have spent less.
Non-Negotiables
This is the category of things I HAVE to pay for, hence, “non-negotiables”. Luckily for me, they are usually a set dollar amount.
Monthly Bills
I do live with my partner, however, these costs below are just mine.
Rent remains one of my less than savvy decisions this year. Especially after my friend made me realize that for $200 more I could have had 3 more bedrooms and a backyard. I know I will be moving into a house next year so I am just biting my tongue until that moment comes.
- Rent – $12,568.99
- Fee to Pay Rent – $13.65
- Electricity – $513.51
- Internet – $677.50
- Phone Bill + new iPhone 11 – $1,062.87
- Car Insurance – $1,045.00
- Car Loan – $4,855.80
- Insurance – $349.32
- Gas – $505.67
Total Spent on Monthly Bills in 2021 = $21,592.31
Food
My goal for the second half of 2021 was to trim this down. I did not do that. The reason I think my eating out is so high is due to the frequency in which I chose to eat out and also because I tended to cover the bill for those dining with me.
I am honestly not a fan of food being at the center of most gatherings. Next year I am going to make the conscious effort to meet with friends in outdoor settings or at their homes/during happy hour. It’s wild that I spent this much on eating out and I truly do not want to do this again going forward.
On a positive note, I spent way less on alcohol than I thought I did.
- Groceries – $1,376.75
- Eating Out – $3,624.34
- Alcohol – $238.94
Total Spent on Food & Alcohol in 2021 = $5,240.03
Habbi-Doggo
I adopted a dog that I absolutely love in late March of 2021.
Factoring in vets, medications, doggy day camp, training, etc., I have spent a sizeable amount on this dog.
total spent on Our Dog in 2021 – $1,968.42
NEGOTIABLES
Ahh, the negotiables. Variable and very questionable expenses over the past year.
Travel
My travel costs for 2021, included 4 trips to Mexico, a weekend trip to Flagstaff, a very pricey weekend trip to Las Vegas and covering the cost of my niece visiting me for a week.
Honestly, this was more than I thought it would be. My initial thoughts was that I would spend around $5K on vacations this year.
I have 4 main trips planned that I am looking forward to for next year. I also have a potential New Years Eve trip depending on how my finances are looking like at the end of the year.
Looking at the total spent in this category is wild. First, I did not know I had that much money. Second, I need to pull back for next year.
- Travel – $7,951.85
Total Spent on Travel in 2021 : $7,951.85
Entertainment
I am getting rid of Hulu & HBO in the new year. Usually I only watch two shows on there and now that Insecure is officially over, there is not a reason for me to have it.
I obviously need to break down entertainment into subcategories because…what in the hell. I cannot tell you what in the world I was so entertained by that cost nearly a grand.
- Entertainment – $900.91
- HBO & Hulu – $338.25
Total Spent on Entertainment in 2021: $1,239.16
Gifting
This is split into three categories. Donations that I make from my earned income (mostly to organizations focused on mental health and social justice), gifts for others and my family.
Gifts to others is probably not the best name for the category. Sometimes I am just covering the cost of a night out. Other times I am deliberately sending money to someone. Honestly, I need to cut back in this sub-category. How did I spend more on gifts for others than I did on my own car loan?
Seeing these numbers laid out like this is WILD.
I do not want to work forever, so I really need to be putting more of my money towards retirement.
- Donations Made – $1,624.05
- Gifts For Others – $4,757.74
- Family – $1,070.88
Total Spent on Gifting in 2021: $7,452.67
Things For Our Home
This section encompasses things like toothpaste, trash bags, storage units, etc. It also included a bunch of things for the new space we moved into.
My first thoughts on seeing this number is, “what the fuck”. Truly.
I am not spending this much money on house shit going forward. Also, I really need to break this down into sub-categories so I can see specifically where those dollars went.
Yes, I know I bought new couches, new bed frames, bedding etc. but DAMN.
Little and big things really do add up.
- Stuff We Bought For Our Home – $3,621.08
Total Spent on Our Home in 2021: $3,621.08
Personal
This is a questionable category and probably needs micro-categories within so I can really see where I can pull back. I spent $5k on myself? How? Where?
At this point I just have to laugh.
I have a lot more money than I thought I did. Going into 2022, I am setting more financial restrictions on myself. All of this is ridiculous.
- Personal – $5,478.75
- Shopping – $1,172.23
- Car Maintenance – $199.00
- Wellness – $1,163.26
Total Spent on Personal in 2021: $8,013.24
Whomp Whomp
I have mixed feelings about this section. Some things, I found tremendous value in. Others, I CERTAINLY could have done without.
Self Improvement
This section encompasses items such as career coaching. LinkedIn Learning, a business coaching program, Live Richer Academy and other courses/activities I bought in the hopes of becoming a better me.
Halfway in to 2021 I decided to cancel LinkedIn Learning as it was a waste of time and money. I cannot believe I paid for 8 months of that crap before coming to that very obvious solution.
Without a doubt, the business coaching was also a complete waste of money. I signed up for this program that seemed like it would help me with my various ventures. It did not.
Furthermore, I still need to complete the Python course I paid nearly $500 for.
In 2022 I plan to cancel Ellevest and LRA. Ellevest used to be a good value when their workshops were included in the membership price. Since that is no longer the case, it just makes zero sense. I am also canceling LRA because I went on the site once this year.
- LinkedIn Learning – $520.72
- Career Coaching – $992.50
- LRA – $119.88
- Ellevest – $75.00
- Business Coaching – $590.00
- Python Course – $466.65
- Anchored Course – $1,000.00
- Other – $62.17
- Udemy – $183.76
Total Spent on Self Improvement in 2021: $4,010.68
Online Business
Yikes. I want to go back and slap myself for all the effort I placed into my online side hustles. It was an INCREDIBLE waste of time.
On the bright side, at least I figured this out rather quickly. I had over 4 different side hustles going at the start of the year. Going into 2022, that number will be reduced down to 1.
Another silver lining, I am thankful that my ideas brought in more money than they cost.
- Online Business – $1,223.89
Total Spent on Online Business in 2021: $1,223.89
Reflection On My 2021 Spending
So, the total dollars I have spent for the first half of 2021 was $20,673.61 (I returned a few things).
In the second half of the year I almost doubled that and spent $40,015.66.
This brings my total after tax spending for the year to $60,689.27
What in the hell.
I think I can live a great life on $45-50K. I would like to test out this budget in the coming years. However, I know for certain 2022 will not be a year in which I stick to the above mentioned budget. I have A LOT of expensive shit I have pre-committed to paying for in 2022.
Now of course, these are things I want to do so I am not complaining about that. I am just acutely aware that my spending will probably land around $70-80K after taxes next year.