Where Does All My Money Go?

 

Ever wondered why, no matter how much you earn, there never seems to be enough for you?

 

Well I am going to explain that today.

It’s funny, once we set up a standing order or a direct debt, or even claim benefits, we kind of forget about it.

 

What we actually spend half our money on is what I like to call “essentials” water, food and shelter.

 

Once we have set up that direct debit for our mortgage or rent.

We come home, transport ourselves somehow magically. Lay our heads down knowing we have somewhere warm and dry to sleep, somewhere to wash ourselves, wash our clothes, cook a nice dinner, even plug in our phone to charge.

Yes that does take up about half our money, 50%.

 

Personally I think it is a good investment, but I do my best to keep the costs down.

 

In America, that is one of the reasons for ‘Tiny Houses’ where people say no, I don’t want to spend that money on housing, I want to spend it on travel and technology, but it is your choice.

 

What about the rest of our money?

 

Well on one hand, half of that, 25% goes on debt payments or savings, depending on your personality.

 

The other half, 25%, goes on things we get really excited about.

I am talking days out, I am talking delicious food, I am talking getting together with the family, birthday presents, Christmas, holidays, even just a decent phone.

And we are not even talking vices, drinking, chocolate, smoking, or whatever else you do?

 

Maybe that explains why, no matter what you do, this is only 25% of your after tax income.

That’s why it never seems to stretch as far as you hope it will!

 

So hopefully that answers the question, where does your money go?

Thank you, Jenny

 

 

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