Simple Work life balance formula

[JEDI]

Formula: cost of Basic expenses = discretionary expenses

Basic expenses: Rent/mortgage, food, utils, insurance, etc
Discretionary: Trips, dinners at restaurants/going out, cable subscriptions, hookers&blow, etc

A good balance is to spend the same amount on Discretionary expenses as basic expenses.

Interestingly enough, i've never calculated how much i spend on basic expenses and how much on Discretionary. I just cared that My bank acct is continually growing at the end of the month.
But my instinct says i'm not spending as much on discretionary.

 

[biostud]

Every month beginning 2012 I've exported all my expenses and income to an excel sheet to see how I spend my money and how my balance is. Since 2021 I've added my investment portfolio.

My cash surplus (or deficit the last three years) relative to my income after taxes.

2023: -2.63% (hadn't really adjusted for the increased prices and the amount my wife transfer to me every month, as I pay all the basic expenses)
2022: 9.94%
2021: 3.90%

 

[JEDI]

Every month beginning 2012 I've exported all my expenses and income to an excel sheet to see how I spend my money and how my balance is. Since 2021 I've added my investment portfolio.

My cash surplus (or deficit the last three years) relative to my income after taxes.

2023: -2.63% (hadn't really adjusted for the increased prices and the amount my wife transfer to me every month, as I pay all the basic expenses)
2022: 9.94%
2021: 3.90%

well, how much cash surplus you have every month is not a balance according to my formula.

You could have a McMansion and drive a Ferrari but eat spaghetti/never go out to grow your bank acct.
But basic expenses (mortgage, car note) >> discretionary for this example

 

[biostud]

well, how much cash surplus you have every month is not a balance according to my formula.

You could have a McMansion and drive a Ferrari but eat spaghetti/never go out to grow your bank acct.
But basic expenses (mortgage, car note) >> discretionary for this example

It is not as easy as you put it. Having three kids costs a lot on the basics expenses, being around my kids and be there for them as much as possible cost very little, but it is what brings me most joy in the life. So my basic expenses >>> discretionary, but I'm still enjoying it.

Basically the most important thing in your life is your time and how you spend it, not the amount of cash you throw at it.

 

[JEDI]

It is not as easy as you put it. Having three kids costs a lot on the basics expenses, being around my kids and be there for them as much as possible cost very little, but it is what brings me most joy in the life. So my basic expenses >>> discretionary, but I'm still enjoying it.

Basically the most important thing in your life is your time and how you spend it, not the amount of cash you throw at it.

Then you can put kids on the discretionary side.
But you'll probably end up with too much discretionary.
Drop a kid, say at foster care?

 

[Torn Mind]

No Roth IRA allocation, I see.

$6000/yr for most people. A bit more for those above 50 years of age.

 

[[DHT]Osiris]

Then you can put kids on the discretionary side.
But you'll probably end up with too much discretionary.
Drop a kid, say at foster care?

Gotta consider them to be an investment, after a few years of extra cost on discretionary you've got a brief period of free labor for home projects.

 

[JEDI]

Gotta consider them to be an investment, after a few years of extra cost on discretionary you've got a brief period of free labor for home projects.

And hopefully free nursing home care

 

[NutBucket]

No Roth IRA allocation, I see.

$6000/yr for most people. A bit more for those above 50 years of age.

Did you miss the memo that we're all high earners and don't qualify?

Also missing from the formula is how hard you work to earn said income.

 

[Red Squirrel]

I would need to get a second full time job if I wanted to spend as much on discretionary stuff as my costs of living, especially in the past 4 years of hyper inflation, where those bills have nearly doubled in only a few years. But TBH I can't think of anything that expensive that I'd want to spend money on every month without being wasteful anyway. I'm not really big on spending money on going out. Once in a while I'll splurge but not something I do that often. I prefer to save up then buy nice things when I have the money. Sometimes I cheat and dip into the credit line though...

 

[WilliamM2]

No Roth IRA allocation, I see.

$6000/yr for most people. A bit more for those above 50 years of age.

You have to have earned income for a Roth IRA. You know, some kind of job...

 

[NutBucket]

In CA panhandling is a great job. No taxes either!

 

[WilliamM2]

I would need to get a second full time job if I wanted to spend as much on discretionary stuff as my costs of living, especially in the past 4 years of hyper inflation, where those bills have nearly doubled in only a few years. But TBH I can't think of anything that expensive that I'd want to spend money on every month without being wasteful anyway. I'm not really big on spending money on going out. Once in a while I'll splurge but not something I do that often. I prefer to save up then buy nice things when I have the money. Sometimes I cheat and dip into the credit line though...

I can't think of any bill that has doubled in the last 4 years.

Natural gas is steady at $0.38 CCF, Electricity has gone down from $0.119 to $0.117 per kWh.
Only increase I see on monthy expenses is groceries (maybe 20%). What are all these doubling bills you are talking about?

 

[Red Squirrel]

I can't think of any bill that has doubled in the last 4 years.

Natural gas is steady at $0.38 CCF, Electricity has gone down from $0.119 to $0.117 per kWh.
Only increase I see on monthy expenses is groceries (maybe 20%). What are all these doubling bills you are talking about?

Natural gas doubled for me, property taxes and water/sewer have gone up by quite a large amount, not quite double in past 4 years but easy double since I got the house and lot of that has been in the past few years. 10% increases each year more or less. Insurance is higher too, hydro is a little higher. Basically it all adds up over time. I figure if I want to stay here in the next few years I'll have to consider a second job. There's only so many places I can try to save. Like I'll be able to save on natural gas once I have the wood stove going, and save a bit on hydro once I upgrade solar, but that's about all after that. All the other bills are fixed (as in, not based on any usage) but go up each year.

 

[Torn Mind]

You have to have earned income for a Roth IRA. You know, some kind of job...

What in the thread makes you think we're venturing into a situation with no earned income?
Yeah, polite personal attacks are still personal attacks. Both an embodiment of stupidity and malice. It's also irrelevant. It's knowledge that anyone can know. Jobs are not necessarily for becoming learned.

Actually, given the state of American financial competency, or lack thereof, those who have jobs also don't know about Roth IRAs. Keep trying, Will.

Did you miss the memo that we're all high earners and don't qualify?

Also missing from the formula is how hard you work to earn said income.

Backdoor it then.

 

[Torn Mind]

Natural gas doubled for me, property taxes and water/sewer have gone up by quite a large amount, not quite double in past 4 years but easy double since I got the house and lot of that has been in the past few years. 10% increases each year more or less. Insurance is higher too, hydro is a little higher. Basically it all adds up over time. I figure if I want to stay here in the next few years I'll have to consider a second job. There's only so many places I can try to save. Like I'll be able to save on natural gas once I have the wood stove going, and save a bit on hydro once I upgrade solar, but that's about all after that. All the other bills are fixed but go up each year.

And Timmins has plenty of crime. You're not making your government happy in scaring away those who'd immigrate to Canada.

 

[Torn Mind]

In CA panhandling is a great job. No taxes either!

It's a sole proprietorship business.

https://www.reddit.com/r/NoStupidQuestions/comments/nfnpsb

Tax Attorney Resources - David Cordero Basada - Page 3 - US Tax Court Opinions

US Tax Court opinions, cases and decisions.

law.onecle.com

Without detailing the source of income or the amount of time
he spent on each activity, petitioner explained that during the
years in issue he earned income from street hustling, pimping,
panhandling, and gambling. We group these activities as "street-
hustling".

William the EBT cop would, or should if he's of consistent principles, disapprove of panhandlers hiding their income to get food stamps.

 

[Red Squirrel]

And Timmins has plenty of crime. You're not making your government happy in scaring away those who'd immigrate to Canada.

Yeah it's gotten super bad here. I remember in the movie Bowling for Columbine how it was talking about how bad gun crime was in the US and how nobody locks their doors in Canada. Yeah, not so much the case anymore. Break-ins happen pretty much every night here now. Lot of people demanding they shut down the low barrier homeless shelter and safe injection site, which are primary responsible for the crime, but it's been falling on deaf ears. Our police are quitting in droves too as they are fed up of the BS as well. Even our chief quit. There's a 30 grand sign on bonus for anyone that wants to be a cop here.

 

[iRONic]

The most important things for me are not things.

 

[WilliamM2]

What in the thread makes you think we're venturing into a situation with no earned income?

The fact that you are on SNAP and Medicaid. How could you put $6000 in a Roth IRA every year?

Jobs are not necessarily for becoming learned.

No, just Google apparently.

Actually, given the state of American financial competency, or lack thereof, those who have jobs also don't know about Roth IRAs. Keep trying, Will.

Personally, I put my money into a 401K, matched 50% by my employer. Instant 50% return. Makes early retirement easy. No need to game the system.

 

[Exterous]

We put our retirement savings away first which will be 30% of gross income in 2023. Then we pay our comparatively reasonable fixed costs, including making sure we have funds set aside for unexpected issues like house or car repairs. After that we save for the things we want (travel) and anything left is for whatever we want. This gives us the financial flexibility for work life balance as we're spending waaaay below our means. I generally like my job but if something changed in an instant I could peace out and be fine while looking for another job

 

[[DHT]Osiris]

The fact that you are on SNAP and Medicaid. How could you put $6000 in a Roth IRA every year?

Starts with an f, rhymes with broad...

 

[biostud]

Then you can put kids on the discretionary side.
But you'll probably end up with too much discretionary.
Drop a kid, say at foster care?

When I lived on my own, for a long period of time I rented out a room in my 2 room apartment to share the rent, even if I could easily afford to pay for it myself, as I wanted more for discretionary expenses and savings, so to some degree I understand your point, but some aspects of life simply cannot be measured in cash allocation.

 

[Lost_in_the_HTTP]

Formula: cost of Basic expenses = discretionary expenses

Basic expenses: Rent/mortgage, food, utils, insurance, savings, etc.


I'm not sure I agree with the first, but I rarely spend more than half of my income each month. Sometimes if a larger bill or expense comes up, but on a 12 month average, no.

Basic expenses + discretionary expenses < 50% of income

Savings is always a bill for me. Something goes in savings every month. I never miss that one. Many months I add more with 4-5% interest rates.

 

[[DHT]Osiris]

Formula: cost of Basic expenses = discretionary expenses

Basic expenses: Rent/mortgage, food, utils, insurance, savings, etc.


I'm not sure I agree with the first, but I rarely spend more than half of my income each month. Sometimes if a larger bill or expense comes up, but on a 12 month average, no.

Basic expenses + discretionary expenses < 50% of income

Savings is always a bill for me. Something goes in savings every month. I never miss that one. Many months I add more with 4-5% interest rates.

Most people would be thrilled if their basic was low enough that basic + discretionary came in under half. Hell I spend like 25% just on groceries at this point.