BigNick
Thinks s/he gets paid by the post
I have a simplified theory of where people spend their money. I reckon that, once you've put a roof over your head and paid for utilities, health insurance/deductibles if you're American, and orange juice to put in the fridge, there are five major categories of ways to burn the rest:
1. Clothes - serious fashion shopping, not $25 jeans
2. Eating out, drinking out, etc
3. Home stuff ("the one who dies with the most stuff wins")
4. Cars - replace every 2 years, 3 cars in the garage
5. Travel
Note that I don't count FIRE savings in there, nor college fees which I assume people also save up for (and which I don't regard as "burning" money, although it depends if your kids are majoring in surfing, I guess).
DW and I make the kind of money where we could afford to do perhaps 3 of those and still save a little. As it is we do #5 quite a bit, #2 and #4 very modestly, and save a lot. We know people who make a lot less than we do and do #1 through #5 like they're going out of fashion.
Anyone else have a model like this? Or a category to add?
1. Clothes - serious fashion shopping, not $25 jeans
2. Eating out, drinking out, etc
3. Home stuff ("the one who dies with the most stuff wins")
4. Cars - replace every 2 years, 3 cars in the garage
5. Travel
Note that I don't count FIRE savings in there, nor college fees which I assume people also save up for (and which I don't regard as "burning" money, although it depends if your kids are majoring in surfing, I guess).
DW and I make the kind of money where we could afford to do perhaps 3 of those and still save a little. As it is we do #5 quite a bit, #2 and #4 very modestly, and save a lot. We know people who make a lot less than we do and do #1 through #5 like they're going out of fashion.
Anyone else have a model like this? Or a category to add?