Steven Barrett
Registered User
- Messages
- 5,461
As someone who sees people's expenditures for a living, I agree with everyone else, it is a pointless exercise.
You didn't state your earnings. That is the benchmark, not people of similar ages with one or two kids.
People have different interests. I speak to people who spend a lot of money eating out. Going to different restaurants brings them joy. Others see that as a waste of money but will spend thousands on the numerous bikes they have and all the kit that goes with it. Different people have different interests, all at different costs. People like spending money on these interests.
Make saving a habit. Put money into a saving/ investment account by direct debit the day after you get paid. It becomes another bill. Make decent pension contributions (max out if you can). Have a household account that the bills are paid out of and transfer the required funds into that. You don't have to worry about what you spend the remainder on.
Other people's situations don't matter. I worked with a family a number of years ago and the wife cared a lot of what others were doing and the holidays they were taking. To the point that they spent every penny her husband earned and were reliant on his bonus for a lot of things...and this is while their kids were young and not going to the private schools they were sending them too (about another €27,000 of net income they didn't have). Her caring about other people will not help them build wealth to provide them with the option of retiring early or even get them to a situation where they weren't reliant on his bonus to pay for the car insurance each year.
You didn't state your earnings. That is the benchmark, not people of similar ages with one or two kids.
People have different interests. I speak to people who spend a lot of money eating out. Going to different restaurants brings them joy. Others see that as a waste of money but will spend thousands on the numerous bikes they have and all the kit that goes with it. Different people have different interests, all at different costs. People like spending money on these interests.
Make saving a habit. Put money into a saving/ investment account by direct debit the day after you get paid. It becomes another bill. Make decent pension contributions (max out if you can). Have a household account that the bills are paid out of and transfer the required funds into that. You don't have to worry about what you spend the remainder on.
Other people's situations don't matter. I worked with a family a number of years ago and the wife cared a lot of what others were doing and the holidays they were taking. To the point that they spent every penny her husband earned and were reliant on his bonus for a lot of things...and this is while their kids were young and not going to the private schools they were sending them too (about another €27,000 of net income they didn't have). Her caring about other people will not help them build wealth to provide them with the option of retiring early or even get them to a situation where they weren't reliant on his bonus to pay for the car insurance each year.