Tabulating Expenses

While an Osher Institute course on Excel did not materially advance my skills, its basic addition and searching capacity have enabled me to get control of my finances.  Good fortune has left me very comfortable on the resources side.  Still, I watch what I spend, though pay a financial advisor to watch what my wife and I invest.

Every month on or about the 20th, I go through bank and credit card statements.  Each expense has a category, though for individual outlays, the best classification can be debated.  If I eat out at home, it's Eat Out.  If I eat out on a trip, it's Travel.  Gas fill ups at home are Gas, while staying at a hotel away, it is Travel, whether I drove my car or a rental.  Tolls are Travel irrespective of where they occur.   Comcast's monthly fee gets called entertainment, even though the internet does not often amuse, the land line gets paid in that bill, and we get TV service.  It makes it appear that I entertain myself more than I really do.  Health insurance gets logged separately from auto and home and life.  I do my best to keep the compromises consistent.  

As I log each individual expense each month, I note which are on autopay.  It's quite a lot.  No insurance premium or utility bill will get overlooked that way.  Credit card payments also get taken out of my checking account automatically, though each card's carrier gives me a heads up a few days before.  My Medicare supplemental premium does not.

At the end of each quarter, I tabulate quarterly expenses by category.  The wizardry of Excel allows me to total the groceries column, the by dragging, the same formula calculates each other category.  I do this at the half year and as an annual summary.

I spent a lot of money.  Biggest chunk by far, taxes.  My investments did so well, at least on paper, that the financial managers silently cashed out periodically, leaving me with big bill to settle with the IRS.  I never saw much of this as income, just as an appreciation of my holdings, but one that required a transfer to my checking account.  Living expenses don't seem that extravagant.  Average $90 a week at the supermarket, purchases of Stuff from retailers or e-tailers totalled less than groceries.  My auto payments ended.  Maintaining my house ran $17K for the year.  Some big ticket items, a plumbing revision, heating repair, landscaping.  And cumulative smaller expenses from lawn mowing to biweekly house cleaning crew, an expense that essentially replaced the car payments that had reached conclusion.

We are pretty generous with donations.  Mostly small ones.  The larger ones come from my IRA mandatory distribution.  We try to share what we have and make a statement about what we value.  Travel came well below our means, maybe about half of what we should spend.  And dining out locally does not amount to much.  Like many others, the cost of each evening has crept upwards.  It will not affect our financial position if we went out more, but it's not worth the cost or the shlep back and forth.

So the numbers tell me that I live sensibly.  Could spend more on myself, but don't really feel a need for any more stuff.  Need to reassess the value of the biweekly housecleaning, some $5K over a year.  No need to rejoin the JCC, though reducing the cleaners by half would more than pay the annual fee.  Some kind of household repair becomes periodically inevitable.  And maybe take a major trip in the coming year.  And hopefully a much reduced tax liability.