Showing posts with label money. Show all posts
Showing posts with label money. Show all posts

1.29.2024

The Not So Successful Side Hustle: An Update

You may recall that I recently started an unsuccessful side hustle. I never claimed to be an entrepreneur and I definitely am not much of a salesperson, but last year I thought I would try my hand in selling some stuff online. The last time I posted, I was just trying eBay, but I asked for your opinions on FB Marketplace and you all said to do it, so I did. 

I won't say that it started off easy. First of all, I was afraid. I don't really love people knowing my details and FB shows your name and could possibly involve your address. I am not a huge fan of people coming over to my house, unless it is specifically scheduled, and I do not really want people inside my house. However, I decided to do a Shonda Rhimes and call this "the year of yes" and just get comfortable with being uncomfortable. 

The first thing I listed was a stationary bike. I immediately got three replies, all offering me the exact amount I had listed it for. Hurray!! Or should I say, hurray? My Spidey senses went up, I looked at the profiles of the buyers and all of them were created in 2023 and had no personal info. I blocked and reported all three. My first adversary, slayed! After that, weeks went by with no further inquiries. 

I decided to try something a little more simple, cheaper and that did not need two people to lift it. I listed an end table, had an inquiry the next day, and had a pleasant conversation with the buyer over messenger. However, our times were not jiving, so face to face pick up was going to be difficult. I decided at that moment to offer to leave it on the porch and she could get it when she could and just leave me money. I figured if she wanted it that bad, she could just take it. However, she was super sweet, came and got it and left me money and then communicated (gasp!) that she had done so. I was converted! 

After that I listed a bunch of other things and after about six months, I have mixed feelings. Firstly, there are a ton of flakey people. So many people ask if the item is available and even if I reply right away, they ghost me after that. I have had people ask questions about details that are in the description (and I always include dimensions, info about stains, chips, tears etc.). I want to tell them to read the bloody description and stop wasting my time, but I usually don't. I have had people fully commit, ask me to hold the item, set up a time and then ghost me. I have had people set up a time and then come an hour early! People are strange. 

However, I have had some good ones and I thought I would give a seller's perspective on the perfect buyer. 

(1) The perfect buyer does not use the auto inquiry "Hi, is this available?" (often used even when the items are plural, by the way). 

(2) The perfect buyer has personality and says something like, "Hello [insert seller's name here], I was wondering if this was still available. If so, I would be able to come and get it today." ***side note, are there a lot of sellers who don't take down their listing even if they have sold the item? There must be, because I get A LOT of  "is this still available" inquiries. It's still listed! Yes it is still available!***

(3) The perfect buyer sets up a time to get the item as soon as possible. An actual time, not "tomorrow" or "later today" or my favorite, "after 9 pm." (they clearly don't know me). The perfect buyer then messages their ETA when they leave, when they are 5 mins away and when they are outside. I love these people! LOVE THEM. 

(4) The perfect buyer does not set up a time, come to my house and THEN ask if they can get the item for half off. The perfect buyer haggles in advance, settles on a price and then sets up a meeting time. 

(5) The perfect buyer pays cash, in exact amounts, but I will not be mad if they want to use Venmo. 

(6) The perfect buyer sends a photo of the item later, happy in its new home. ๐Ÿงก 


So clearly everyone is different, and I am sure the buyers out there have some horror stories about the sellers (and I want to hear them!) but it seems like sometimes common courtesy is just lacking. I actually went down a wormhole of this reddit thread and wow, there really are some way worse horror stories than I have had! 

But wait, let me tell you about the saga of the suitcases. I have a set of suitcases; there are three of them, they are hard sided, they have four spinning wheels. They are nice suitcases. I only used the smallest of the three a couple of times, but I decided I was a backpack person and they sat in the garage for years. I listed them for about half of what I got them for, even though they are essentially unused. Since I listed these cases, I probably have had almost a thousand clicks on them. And for some reason, everyone who is interested in the suitcases has some issue or other. 

The accursed luggage. 

The first guy seemed like a creeper as he did not ask any questions about the cases, but just asked for my address right away, so I ignored him after that.

This lady told me she wasn't a flake, which made me suspicious.  Also that looks like a copy-paste. Hm. 


Several other people set up times and then ghosted me. Here is an example. (before this first clip, I told her I would be available from 12 pm to 1 pm). 

At 12:57, no word. So I messaged her. 

After this, she gave me another thumbs up and then the next day, did not show, did not message, nothing. 

Here is another good one. This lady messages me on Tuesday afternoon and says: Hi do all the wheels work smoothly? I just had to return a luggage set to a lady on market place. The wheels ended up being all wonky and not wheeling properly. I’m leave for a long trip Thursday and need something durable. 

So I am thinking that she sounds like one of the ladies I used to serve at Nordstrom; they would buy shoes but as they were buying them would complain about shoes and you knew, you JUST knew that they were going to wear them once and then return them (which goes against your commission if they do) after wearing them. Also, their party or whatever would be the next day and they would complain about how they just can't find anything perfect (and you would be thinking that it doesn't seem strange to you!) yet! 

BUT I message her and tell her that the wheels work great but I am only available Tuesday evening, not Wednesday. She goes on to then ask me my address (why!) and I give her the general area, thinking that we have a sale. Then she asks for $25 less than the listed price, which by the way is about 25% less, and when I counter, she doesn't agree, but just asks if we can set up pickup for tomorrow, and I reiterate that I am not available Wednesday and then... she ghosts me. Mind you, this exchange took place over six hours. So she texted me at the last minute (for her vacation) and then draws out the conversation and then doesn't want to come and get it as soon as possible!? I don't get it. 

On the other hand, if you ever DO want to get into a side hustle, for some reason around here, plants are the way to go. Remember I talked about emptying out my plant room? Well, I was going to just put them all out on the curb with a "free" sign, but I thought what the heck, I will give FB a shot. I listed about 15 indoor plants and over the next day, I sold about 9 of them and made almost $200! Listen, I listed them cheap, including the pots, but I was going to give them away for free, so I was super happy. Drinks are on me! Plus, if you recall, many of these were propagated by me, so aside from the pot and the time, they didn't really cost me much to begin with! 

Plants for sale!! 

Do I know how to make a short story long, or what!?!? Thank you for listening, and thanks to those of you who commented on my original post and prodded me to just give it a shot. 

Do you have buyer or seller horror stories? Are people in your area as flakey as the ones here? But most importantly, why are the suitcase people so weird!?!?!? I need hypotheses! 

1.08.2024

Looking Back: 2023 Money Pie

Who is ready for a slice of money pie? As you may know, I always do a debrief with myself at the end of each year to see where all my money has gone! I also do a quarterly net worth statement just to get a read on where things are, but I will not be posting that here! :) 

In 2023, I am happy to say that I decreased my overall spending from 2022 by about 12% and came in below my yearly (8 year) average by about 9%. The main drivers of this decrease were the travel and home categories, which I will talk more about below. 


Here are the categories in the order of largest percentage to smallest. 

Home: 63.2%. Interestingly, last year my home category was 63.7% of my overall spending and in 2021 it was 64.1%, so I guess no matter how you slice it, the home category continues to be almost two thirds of my spending! This category includes mortgage, utilities, taxes and insurance, as well as other misc. items, such as home improvement, maintenance and furnishings. 80% of this number is mortgage and property tax.  You may remember that I mentioned last year about how I was paying a little extra into my mortgage? This year, given the good rates on cash, I stopped doing that and put the money into high yield savings instead. Due to this, I decreased the actual dollar spending amount in this category by about 13% from last year. 

Transportation: 12.2%. This normally includes Lyft/Uber, public transportation, car insurance, maintenance, registration, gas, tolls & parking, but this year I added bike maintenance and parking fees to the category as well. Despite commuting by bike from July to December, I still had public transportation costs, but the main culprit in this category was body work after my car got broken into. I also got four new tires for the Red Rocket and did a full body tune up on Bertha. 

Travel: 6.6%. This category includes airfare, car rental, lodging and any groceries, dining out or transportation incurred while traveling. Although I did not travel internationally and much of my travel consisted of tent camping and eating my own meals, some of the other costs incurred during travel were quite expensive this year. I went to Alaska, and the rental car alone was about $1,500!! It was an SUV though and we actually slept in it several times, so saved on hotels, thank goodness. However, even with this, I spent about 50% less on this category than in 2022. 

Misc.: 4.4%. This category includes gifts, haircuts, legal fees, fees for credit cards, tax prep software and education expenses. I had to pay for my yearly CFA dues, legal fees to set up a trust and annual credit card fees, but other than that, the bulk of this category was for gifts! (PS no haircuts in 2023 ๐Ÿ˜Š)

Groceries: 3.7%. This category went down by 38% from last year, mostly due to the fact that part of my purging process was to stop buying new stuff until I had used up older stuff! I would say that I did a pretty good job and have had fun being creative with cupboard items, but I still bought the regulars like butter, eggs, fresh veggies and cheese. My other saving grace for this category was less trips to Costco and/or only allowing myself to buy what I went in there for! I do have a tendency to grab yummy looking things oh a whim, but this year I put a stop to that! Funny though, out of my six visits to Costco, I bought tortilla chips on five of them. Some habits you just can't break. 

Dining Out: 3.5%. This category includes eating out, coffee and booze. This one is a little misleading this year, as I decided that in an effort to spend time with people and have experiences rather than buying more things, I would enjoy meals with them! Given this, I bought meals for friends several times. I could technically call this "gifts," but for now I am going to leave it as dining out. However, it does inflate this category a bit, and I had a 200% increase over last year. 

Entertainment: 3.1%. This category includes music, theater, sporting events, cycling and running & camping expenses. In 2023, I went to two shows (Les Mis and Book of Mormon), a couple of sporting events, but my biggest categories for this are still running (32%), hiking (20%) and cycling (19%). My biggest purchases were race fees (three races), a new GPS watch and a new rain jacket. 

Health: 2.6%. This category includes health insurance, out of pocket costs, massages, medicines and vitamins etc. This year most of my visits were covered as preventative, so the bulk of this cost is the insurance itself. 

Shopping: 0.8%. This category includes toiletries, clothing, misc. home items & appliances, electronics and books. Basically this year I bought three things in this category: a new camera, a 3-pack of underwear that I hated and feminine products. Trying to purge more has really made me think about things more before buying. Also some of the camping etc. items I did buy are included under the entertainment category. 

I do also put some money aside for investments and saving each year, but since this money is not yet "spent" I do not count it in this analysis. I also do not include income taxes, but if I did, they would probably be my highest category! However, since I don't have much control over them, I am going to leave them out for now. 

Do you do a yearly review of your finances? Do you have a budget? What is your biggest spending category? 

8.28.2023

The Not So Successful Side Hustle

Most years, I do a purge of all of my things, but this year I decided to ramp it up and try to get down to the bare bones. I am doing a pretty good job for the most part. I have whittled my work clothes down to about three pairs of slacks and seven sweaters (one for each day of the week plus a couple of backups since a couple of them are well loved). I only have two pairs of running shoes (if you are a runner, you know how these can collect, and it is very common to buy several pairs of the same style if it fits you well). I am getting there slowly. 

The thing that I decided to do this time which I have not done before is to sell some of the things online. Much of my work clothes and shoes were purchased when I worked at Nordstrom (in the late 90s / early 2000s and yes some of them even still fit!) and I spent a lot of money building up my work wardrobe. After that, I bought some extras from thrift stores, but I always pick through and find the good brands (BCBG, Ann Taylor, Tahari, Diane Von Furstenburg etc.) So I thought that maybe I could get some of my money back by selling these items. 

It took me a long time to get started. You know how you have good intentions but that box of "sell online" items sits in your closet for months because you are not sure how the shipping works and you are too lazy/scared/unmotivated to find out what to do? That is what I did. I purged, I segregated, the box sat in the closet. Finally, I looked up shipping procedures, got flat rate boxes from the PO and started taking photos of things. But then, I was not sure how much to charge and I waited again, pondering. Finally I put my first item on eBay. 

And then...nothing happened. Nothing happened for a long, long time. This was my first time and I had no idea what to expect or what to do if nothing happened, so I let it refresh (it does this every 30 days) for a long time before I finally took the listing down. Then, about six months later, I decided to try again. This time I put several listings up and I decreased the price if they did not sell after a certain time period. For a long time, nothing happened. 

And then...someone bought something! Hurray! Then I muddled through printing a label and putting it in the right box and getting it to the post office, but I did it. In the end, it was not that hard. I don't know why I waited so long to start. After that, I enthusiastically posted a half dozen other items, and...nothing happened. 

You can see where this is going! However, after about a year and a half of listing items, I have sold probably five items. So clearly I am not going to quit my day job! However, it is very satisfying to get even $20.00 for an item that I paid a lot for, as the alternative is to get nothing! HOWEVER, I do not think that the buck is worth the bang unless you are at home full time and you have free time. Let's say I probably spent five hours collecting, photographing and posting listings (and revising) and I have made....drumroll please...about $70.00. This puts me at $14.00 per hour, which is less than the $18.07 minimum wage in San Francisco. Bottom line: I should probably go get a job at a coffeeshop and give all the items to Goodwill! 

When the items do not sell on eBay, I send them to thredUp, which is an online consignment store. I have sent about 12 items to them and made $64.00, so my per hour on this is probably about $18.00-$20.00 per hour, but my per item is only $5.00 vs about $14.00 per item on eBay. I did look into taking my things to a local consignment shop but they are VERY picky, i.e. it has to be current season, certain brands etc. and most of my things are not current season (they are classics!) 

Next up is a big Goodwill/Salvation Army run, or maybe I can try one more platform, but first... 

I need advice! Have you ever sold things online? If so, what platform do you use and how successful have you been? If you have been successful, what tips can you give me? Has anyone tried or had luck with Facebook Marketplace? If so, do you let people come to your house or do you meet them somewhere? How exactly does that work!? 

5.01.2023

The Money Pie Deconstructed: Groceries

Every year I do a recap of my spending, and I have broken the items into nine categories: Dining Out, Entertainment, Groceries, Health, Home, Misc., Shopping, Transportation and Travel. Last year I broke down my transportation category and went into more detail about where I spend my money in this category, how I get to work, how hard it is to park sometimes and what's in my trunk. 

Now its time to talk about groceries. Before I start, I have a confession to make. I like reading posts and watching YouTube videos about how people spend their money, and specifically how they spend their grocery money and/or how they save money on groceries. Some of my favorites are Frugal Fit Mom, Mary's Nest and FlavCity

I am not a doomsday prepper, but I definitely could last for a few months on the stores that I have in my house. Much of this is due to the fact that I have a good supply of camping food, which lasts for a long time, is lightweight and can be eaten by just adding water. I also have amassed a good supply of staples over the years, such as rice, dried beans and canned tomatoes. 

I am not an extreme couponer; however, I do like to sit down with the ads each week and compare prices at my local stores. I prefer to do this on paper as it is nice to be able to compare the different places side by side, but a lot of stores have apps and I will sometimes browse them instead, which is nice because you can make a list of things to buy right on the app. However, using the apps does sometimes mean toggling back and forth or making notes about which store has better deals. I usually base my weekly shopping trip on whichever store has the better deals. If one store has one of my staples at a great price, I may just shop at that one store for the week, or if the deals are split, I may go to two. 

I make a list in Google Keep and to be honest, a lot of weeks I just duplicate the list from last week and change a few things. There are a few staples I often buy so my list looks very similar each week. This app is also good if you are sharing shopping duties as you can add a collaborator and they can also add or cross off things from the list.

I generally shop at Safeway for most basics, and a local store called Farmer Joes for produce. Farmer Joes is a combination of expensive specialty items, bulk items and produce; if you want a head of lettuce, their prices and quality can't be beat, but if you are looking for a gallon of milk, you will pay out the nose for it. This makes it worth my while to go to both stores, plus they are only a block apart so it does not take too much extra time. 

I have a two tiered method of shopping: (1) fresh items that I use each week, such as milk, eggs, vegetables and fruit and (2) longer term items, such as dry goods like beans, rice or oatmeal, canned goods and meat, which I will buy in bulk and freeze. For the fresh items, sometimes you just have to pay a little more, but I try to buy what is in season and work around that rather than having a specific dish in mind and buying specific items for that dish. I am happy to eat oranges instead of apples, or use oat milk over almond milk if one is cheaper or fresher than the other. For longer term items, I try to get them when they are on sale and I store them until I need them. For example, last week Lucky's had pork chops for $0.99 per pound, so I bought ten pounds and froze them in two packs for later. Again, I don't really need specific items so will buy whatever is cheap at the moment. 

The "pantry"

I do not plan meals per se, but will see what is on sale and will then loosely plan around that. If pork chops are what I bought, that week's lunches will be pork chops and I will add whatever veggie I bought along with rice or quinoa from the long term section. I usually cook enough for one week's worth of lunches and prep them all at once. For dinners, I will normally go to the freezer where I have stored my prior deals in convenient serving sized packs, and I will take something out in the morning and then cook it at night with some other veggies etc. 

I guess I will be having pork butt soon!

I do not mind eating the same meal several times a week, and a lot of my meals consist of meat/tofu and a veggie with sometimes rice or potato. Other standbys are beans, lentils or some sort of Indian or Thai inspired "stew" (usually beans or tofu) over rice. If I am feeling lazy, an old standby is miso soup and if I am feeling frisky, I may add chicken or pork or rice noodles to it and call it ramen. 

Weekly meal prep

Lunches for the week

Let's talk about the costs, my favorite part! I love hearing what others spend on their grocery bills and why its higher or lower. I know a few of you chimed in on my purging post and I am amazed at what a range there is of how much people spend! Over the last six years, my average grocery bill per month has been about $320. This is inflated by the amount I spent in 2020; without this outlier, the average would be about $290. For the first quarter of 2023, the average is about $200, but my goal for this year is to shop more from my pantry and use up some of the items I already have rather than buying more, so I expect my grocery costs to be lower this year. 

Fun facts: in 2022, I went to Costco 17 times; my average spend per trip was $115. My three top purchased items by count at Costco were blueberries, strawberries and cucumbers and by dollar amount were coffee, strawberries and blueberries (yay fruit!). The price of two pounds of strawberries ranged from $6.99 to $10.79 throughout the year. The average cost was $7.97. 

What is your grocery shopping schedule/method like? Do you often buy the same things over and over or are you more exciting than me? What is your favorite "go to" meal? If you have not already answered this, how much do you spend on groceries? 

4.10.2023

My Last To Do List: Trusts & Other Documents

As I have mentioned before, I have a folder of all of my important docs and a list of all of my accounts and important details. I often call this list "the death list" because it is the list of things to do after I die, but this sounds kinds of morbid, so I will retitle it the last to do list. I hope that this list will not be needed for a long time, but I am happy to keep changing it if that means I live a lot longer. However, I also do feel that it is important to have your affairs in order, just in case. This post is about item one on the last to do list, setting up a trust

Before I get started, if you do nothing else or do not feel like reading this long post, at least do these two things: (1) Set up beneficiaries on any retirement accounts or Transfer on Death (TOD) designation on your other accounts. This allows worry free and probate free transfers of your money to someone else and even if you do not have a will or any other paperwork, the money will get into the right hands. (2) Complete an Advance Directive (see below for more info) form which will detail what you want done in case you are incapacitated (i.e. DNR).

But now, let's talk about why any of us would need a trust. A trust will help you to avoid probate. Probate is what happens when you pass away and the court has to approve your will and name or approve your executor. The costs of probate differ by state but in California, costs are based on the gross value of the estate and are 4% on the first $100,000 and then there is a sliding scale after that. Let's just say your assets are worth $100,000. That would be a $4,000 cost!! Also, this process can take six or nine or even twelve months, which can be a pain for your loved ones. 

The alternative is to set up a trust. I always thought that a trust was something rich people had for their spoiled kids. This is not the case! A trust is something that protects you, outlines your wishes and minimizes taxes (and avoids probate!). When you die, your successor trustee (the person you want to carry out your wishes) can start doing what you outline right away without getting the court involved. Depending on your situation, setting up a trust should not be too difficult or costly. I spoke to two different trust attorneys and the going rate is around $1,500 - $2,000 depending on your situation and the number of properties you have (in CA it costs $200 per property to change the name on the title). Of course, you could probably also just Google it and fill out something online that would work, but I wanted the peace of mind that comes with having a professional help me. Plus, my job offers legal benefits, which are similar to health benefits where you pay a little bit month. This costs me about $360 per year, so the attorney fees for setting up a trust only cost me $360. 

Additionally, not only will the attorney help with the trust, but they will also complete an Advance Directive, a will and a Power of Attorney form for you. If you have not already set these up, even if you do not have a trust, you should at least have these three things. 

Why do you need these? Let's talk about each one separately. The Advance Directive conveys your wishes regarding your health in case you become incapacitated and outlines who has the right to make health decisions on your behalf. You can easily get these documents from the internet. Nobody wants a case of Terri Schiavo on their hands. Here is an Advance Directive form that I used in the past. These do vary from state to state so you should use one for your particular state. The other things you should write down and keep with your AD are things like: do you want to be cremated or if you want to be buried, where do you want to be buried, do you have a plot already, etc.?  

We all know what a will is, so I won't go into too much detail; however, you may think that it doesn't matter because everything will just go to your next of kin, which is true. But having a will makes things easier for the people you leave behind, specifically appoints an executor (otherwise the state may do this for you) and can detail who will take care of your children, what your wishes are for your funeral etc. Again, you may think that you won't care because you will be gone, but it will make things easier for whoever is left to take care of your affairs. You can also note anyone you do not want to have anything, like creepy uncle Phil for example. This article is very helpful, and also has a free online version of a will that you can use to get started. 

The Power of Attorney tells people who can make financial decisions on your behalf if something happens to you. We all think we are invincible but what happens if you are in a car accident and can no longer make your own decisions? The other option is to add someone as a joint account holder on your accounts, which will give them the freedom to use the money to pay for your care, pay your bills etc. However, if you don't feel comfortable with that, you should appoint a POA. 

Okay! Let's go back to the trust again. Setting it up does take a little work, i.e. you do have to know who you want to get your stuff, who you want to handle your affairs etc. But once you have decided that, the actual process of doing the paperwork is very easy. For example, I had to give the attorney all of the information about my bank accounts (not numbers, just where the accounts are held), any investment accounts, any properties with addresses and any specific bequests. For who I was going to bequest anything to, all they need is the person's name. No social, no address, no phone. For anyone I wanted to give POA designation to, it was the same. So it was really not as complicated as you may think. 

Also, just like most legalese, there is always a phrase to cover you. For example, very common language goes like this: I gift my 13 inch TV to my brother and if deceased, this gift shall lapse. What does this mean? It means if he is no longer around, the gift goes back into my estate. You can set this up however you want and the "if deceased" can literally be a list of 40 people who you want to have in order of importance, or you can give everything to a charity like Warren Buffet. 

Do you have any of the abovementioned items? What steps have you taken to arrange your affairs? Do you have any tips to add or questions about the above? 

Disclaimer: The information above is solely an opinion based my own personal experience. You do you. I am not a tax and/or financial advisor; nothing in this post should be taken as investment advice. I have no fiduciary responsibility to anyone reading this post. Please consult a financial advisor for investment advice.  For my other posts regarding money, go here

3.23.2023

3/23/23: The Trifecta Of Terrible

Today is a palindrome! I am a fan of these kinds of fun things with numbers and words. I know I have mentioned this before, but if you are not already playing Octowordle, I suggest you do it now. It does not have to be a wormhole; you can just play one game per day while concurrently keeping Alzheimer's at bay (hopefully). 

But that is not was I was going to talk about. Everyone has a pandemic story, and for many people the "three year anniversary" of their story just passed. I do not disagree that the 13th or the 16th of March were monumental days for most of us, myself included, but for me another day I will never forget was March 23rd. For those of you who don't know, I work in the finance industry. As you may remember, this was a difficult time in the stock markets. 

Here's a quick recap. The stock markets were doing well and were basically going up and up and up.  Then the decline started at the end of February, when the stories of COVID cases around the world started to increase and hit the news more and more. In the next four weeks, as news stories kept surfacing and cases kept rising, the stock market was halted four times. This happens when the index drops more than 7%, usually from it's previous day's close, and it causes the entire market to pause all trading for 15 minutes. I have only seen this happen a couple of times and it generally signifies something very bad; this can also happen with single name stocks, but that is not quite as worrying as the entire market shutting down. 

On March 9th, Italy went into lockdown, the markets took a dive and were subsequently halted, oil prices plunged, and Dr. Fauchi told cruisegoers that maybe they should rethink their vacations. On the afternoon of March 11th, I flew to New York City for work meetings and my friend's wedding, which was scheduled for Pi day (March 14th). My flight was nearly empty. By the time I left for the airport, the S&P 500 had dropped over 9%, WHO had declared COVID-19 a pandemic and Trump had suspended flights from Europe. 

Flight San Francisco to New York on March 11th

The next day in the office in Manhattan was not a pretty one; the markets were halted again and everyone was scrambling to figure out where this was going to go. I will not lie though, that evening I went for a work dinner, with hugs and no masks and shared appetizers. We just did not know what was coming. 

That evening, my friend texted to say that she was worried for me because they were shutting down restaurants in Brooklyn and that she and her fiancรฉe were thinking of canceling their wedding. I was still skeptical and thought maybe she was overthinking things (she IS a worrier!), but I asked her to keep me posted. The next day, Friday the 13th, Trump declared the pandemic a national emergency (and the markets actually went up) and my firm stated that only essential business travel will be allowed. My worried friend told me they were canceling their wedding and I should get on the first flight out of there. 

I did what she said and left the next day (luckily my getting home WAS essential to my company!) I was in the office on Monday early as I usually am, when we got the word that people should all stay home and that the office would be closed, effective immediately. Since I was already there, I said I would stay and they let me. I am glad they did. I was not too worried about my health as I was alone in my own solo office so I did not feel unsafe, but also this day turned out to be even worse than the others; all three main indices dropped over 12% and were halted again that day and it would have been really hard to do my job not only from home but on a new system that was not even available to us before this day and so we had not practiced using! 

The week of March 16th was not awesome, and was full of stress and anxiety and yet another market halt, but the bottom of the markets came on....you guessed it, March 23rd! Of course we did not know it was the bottom; it was just another bad day in a string of bad days. But I will never forget this day; I will never forget this entire experience, but especially this day. In my time working in finance, or maybe in all of my career, this was the worst period I have ever experienced, both financially and emotionally. It was unpleasant and emotionally draining. Added to a world that was in the midst of a pandemic and going through this all while in lockdown, it was a trifecta of terrible. 

Screenshot taken on March 18th 2020

Photo sent to my parents at the end of the week of March 16th - yes, that's a pint glass.

I know that many people have kids and had to deal with that, or had to work and couldn't afford to stay home, AND had kids. I know that many people have loved ones who died. There are so many stories about coping and hardship and loss, and my story about people losing their money is not the worst of it. This entire period and beyond were horrible, as my grandma would say, and I am definitely not minimizing anybody else's horrible. This is just one story of many. 

What is your pandemic story? What part of the COVID-19 experience will you definitely never forget? What day or event sticks in your mind the most? 

Disclaimer: The information above is solely an opinion based my own personal experience. You do you. I am not a tax and/or financial advisor; nothing in this post should be taken as investment advice. I have no fiduciary responsibility to anyone reading this post. Please consult a financial advisor for investment advice.  Sources include ReutersThe Week and CNBCFor my other posts regarding money, go here

1.09.2023

Looking Back: 2022 Money Pie

Well jeez, it is that time of year again! Who wants a slice of money pie? As you know, I always do a debrief with myself at the end of each year (and a check in each quarter although I do not bore you with those details) to see where all my money has gone! You can find past years here.

In 2022, overall I spent about $1,000 more than my average per year. I will detail all of the categories below, but the main culprit this year aside from the obvious elephant (Home) was a combination of Dining Out, Entertainment and Travel. I do keep these separate, but I also like to see what they look like combined, as I consider these three categories discretionary versus necessary. I will discuss more about them in a few. 


Here are the categories in the order of largest percentage to smallest. 

Home: 63.7%. Not surprisingly, this category continues to lead the pack and this year's 63.7% was pretty much the same as last year's 64.1%. This category includes mortgage, utilities, taxes and insurance, as well as other misc. items, such as appliances, stuff from the hardware store, home improvement and furnishings. The bulk (73%) of this category consists of mortgage payments, partly because it is large, but I also contribute a little bit extra to my principal each month. 

I did do a few things around the house like fixing my furnace ($150) but nothing big (like last year's > $1,000 tree trimming). I think with this category, no matter what you do to cut costs, there is always something. This year, due to rising costs, my PG&E (electric and gas) bill was basically double last year's bill much of the time. 

Travel: 11.7%. This category includes airfare, car rental, lodging and any groceries, dining out or transportation incurred while traveling. Although most of my travel consisted of tent camping and eating my own meals, some of the other costs incurred during travel were quite expensive this year. I spent about $500 more on my international flight than I did in 2019 so it makes sense that airfare was about 36% of the travel expense (next highest was lodging at 25%)! 

Transportation: 7.2%. This includes Lyft/Uber, public transportation, car insurance, maintenance, registration, gas, tolls & parking. Although gas prices were through the roof this year, I actually spent about the same as I usually do in this category. I definitely spent less on public transportation because I had some credit left over from 2020 on my transit card, and I did not have to do any major car maintenance. 

Groceries: 5.3%. I guess we all have to eat and I definitely did not skimp in this category (however, my dining out category was basically nonexistent). My weakness is Costco; I cannot get out of there without spending at least $100 (and sometimes a lot more). However, their egg prices are still the best ones in town right now (about $12.00 for five dozen). But I never just buy eggs! 

Entertainment: 3.8%. This category usually includes music, theater, and running & camping expenses. This time I added cycling to the mix and I bought both a stationary bike and a mountain bike, so the bulk of the number is split between running (39%) and cycling (38%). Most of my running number is race fees (three races) and shoes (five pairs - when they are on sale, I stock up). 

Health: 3.5%. This category includes health insurance, out of pocket costs, massages, medicines and vitamins etc. I don't really pay many or any out of pocket fees that don't get reimbursed, but the premium each month is not super low. However, if I had to pay for my own insurance rather than group insurance, it would be about two to three times higher, so I am happy! 

Misc.: 2.4%. This category includes gifts, haircuts, fees for credit cards, tax prep software and education expenses. I only got one cheap haircut and did not pay for any education this year, so most of this was gifts! 

Shopping: 1.3%. This category includes toiletries, clothing, misc. home items & appliances, pet stuff, electronics and books. The majority of this went to the cat (flea treatment and litter ain't cheap!) and the next biggest expense was the bidet

Dining Out: 1.0%. This category includes eating out, coffee and booze. As you can see, it was my smallest category, which makes sense as I do not really eat out  much. The bulk of it was really two dinners where I treated, but otherwise, this category was tiny. 

However, don't be completely fooled, as I do categorize any dining out that is done on a vacation as "travel."  This is why I like to look at the combined categories of Dining Out, Travel and Entertainment to kind of gauge where I am with my fun spending items. If you look at them all together, they would constitute 16% of my overall spending. 

I also have two categories that I do not put on here since they are not actual money spent, but I do put some money aside for investments each year and some aside for savings. I think that it is very important to do both, even if the amount is minimal, and especially if you can do it before taxes. You can find more info in this post about how I feel about setting money aside. 

Do you do a yearly review of your finances? Do you have a budget? What is your biggest spending category? 

4.25.2022

Every Quarter Counts

Some people are not comfortable talking about money. I am actually a very private person and often don't like talking about anything about myself, money included. However, I am learning that this is not always beneficial in the long run. How do we figure out how to do things or what to do if we do not seek the information and advice from others? How do we avoid the mistakes that others have made if not to talk about them? I am not saying that I am going to put my taxes online for everyone to see them, but maybe if I did someone would give me some tips to do them better! Actually, if you can give me some tips to do them better (I do them myself; your first tip is probably to hire someone else!), please let me know! 

Due to worries about finances surrounding COVID and the economy in general lately, I think this is a good time to share tips about money, be it saving, spending or investing it. I was always taught to save it, but as I have gotten older, I have learned a little about spending what I have saved! But today I will not talk about the spending portion, only the saving portion. I have heard many mind boggling stats about Americans, such as that less than 30% have more than $1,000 in savings! 

Today I want to discuss three pieces of advice I have been given and the things I have learned over the years because of them. If you know something that I don't know, please let me know. 

Never throw away free money.  I had just landed my first college job and was filling out all of the HR paperwork, including 401k documents. I had no idea what half of the terms meant and I asked a friend of my parents to tell me what boxes he though I should check. He told me that it did not really matter what fund I put my money into; what mattered what that I should put at much as I could from each paycheck into the 401k and most importantly, should at least contribute the amount the company was willing to match, otherwise I would be "throwing away free money." For example, I believe my company at the time would match dollar for dollar up to 3%. He told me that I should try to put in 10%, but if I didn't feel that was possible, that I should at least put in 3%. I did what he said and by the time I left that company after eight years, I did not miss the amount I had been putting in each month, I was fully vested and I walked away with that extra money "in my pocket" (technically it is in my retirement account, but it's still mine). 

A side note or addition to the above is that if your company has a 401k, you should put money into it. Some companies have an automatic contribution (i.e. they will put 2% of your paycheck in unless you opt out) but many require you to sign up on your own. Currently in the U.S. you are allowed to put up to $20,500.00 per year into your 401k before taxes and your employer match does not count towards this number, so it could be even more than that once the match is added. I will talk more about this specific topic in a future post but the takeaway for this post is that you should contribute something. 

What does this mean? Even if your contribution is pennies or dollars, if the company is willing to match it, you should put as much as you can! It can also be beneficial to implement some sort of similar plan with your kids to teach them to save some of their hard earned money instead of spending frivolously. For example, you can suggest that they put half of their babysitting money in an account and you will match whatever they put in there dollar for dollar. 

Compound interest is your friend. This is not a new concept, but I think it is one that is not fully explained to people in the early days, when it is the most pertinent. Did you know that if you started putting $50.00 per month into a account yielding 2% when you were 18, and then stopped putting money in at age 40, by the time you were 67, you would have about $30,000.00. Your total investment would be about $14,000.00 in this case. 

If you only starting saving your $50.00 when you were 30 and you kept putting $50.00 per month in your account until you invested $14,000.00, or were 52, then let it sit until you were 67, you would end up with about $23,000.00, over 20% less. Think about that. I used $50.00 and a low rate of 2%, but imagine your interest rate was 5%. In this case, the gap gets even wider ($100,000.00 vs $54,000.00) and if you double your total investment to $28,000.00 and assume a 5% rate you would end up with $198,000.00 vs $109,000.00. 

I think many people feel that they only have a few dollars and it is not worth it, or that they don't have any extra cash, but even if you are only putting in $5.00 or $10.00 at the beginning, it will add up eventually and I do think every penny counts. I think in most cases, you won't miss it if it's taken out beforehand, and to go back to my point number one, if you are putting in $10.00 and your employer is matching $10.00, it will add up faster than you think. 


What does this mean? Start saving as early as you can! Even if your contribution is pennies or dollars, when put in an interest bearing account early, you can reap the benefits of getting interest on your interest. But wait, what if I am already 40? In this case, it still makes sense to put as much as you possibly can in as early as possible, as you will still be able to take advantage of compounding!

The Latte Factor. This is an old concept and one I have written about several times. Basically the gist of it is that if you skipped your daily latte purchase, you could save a lot of money. The end. But seriously, if you bought a coffee from Starbucks every weekday, that would be approximately $20.00 - $25.00 dollars per week you would save. Using the example above about compounding, instead of $50.00 per month, you could be putting away $150.00 per month just by making your own coffee. The item does not have to be coffee; it could be a salad or a sandwich or a fill-in-the-blank. The bottom line is that the little things add up and probably many of them are unnecessary or frivolous and the savings now will pay off in the long run. 

What does this mean? If you think that you don't have enough extra money to put in a savings, here is where you can reassess. I am not saying that you need to give up all things good in your life. Even if you skip one latte a week (or one McDonalds hamburger, or one Uber ride or....etc.) you will now have that $5.00 a week or $20.00 a month to put into your interest bearing savings account! As you can see, each little bit counts. 

So now we have talked about three ways to save money. Do you already use some of these methods? Do you have other tips or tricks that you use to save money? Are you a spender or a saver? 

Disclaimer: The information above is solely an opinion based my own personal experience. You do you. I am not a tax and/or financial advisor; nothing in this post should be taken as investment advice. I have no fiduciary responsibility to anyone reading this post. Please consult a financial advisor for investment advice.  For my other posts regarding money, go here

3.24.2022

The Money Pie Deconstructed: Transportation

You know how sometimes you are running along, or driving, or walking and you are kind of letting your mind wander and all of a sudden something pops in there? I don't know about you, but this happens to me a lot when I am running and I sometimes have to stop and jot down a quick note on my phone or I will forget what my "brilliant" idea was. So the other day, I was running and it came to me that it would be fun to talk about each category of my money pie, not necessarily about the financial aspect of the category, although that may be part of it, but just random thoughts, or as Mike Meyers would say on Coffee Talk, "I will give you a topic. Talk amongst yourselves." 


I am going to do this in no particular order, because the topic that came to mind the other day was car related. Therefore transportation is the first category! 

What is your car situation? I did not have a car for about 16 years, as I was either traveling around the world, traveling for work, or living in San Francisco/Oakland, where you can get around without one pretty easily. When needed, I would rent one, but for a long time, that was not very often. I bought my car in 2016; it is a 2016 Hyundai Accent. It was used with about 10,000 miles on it and I bought it because I wanted a cheap car with good gas mileage. It is named The Red Rocket. 


What is the parking like in your area? Sometimes it is hard to park in San Francisco. If you live in a neighborhood, you can apply for a sticker, which allows you to park longer than the usual one or two hour limit. Otherwise, there is also street cleaning on most streets either once per week or once every other week, so you also often have to move your car every week. A friend of mine used to schedule his grocery shopping for 6 am every Wednesday so he could be back in time to follow the 7 am street cleaner down the street and get his parking spot back. It is also sometimes hard to find a spot and I remember driving around for 45 minutes once and almost getting into a fight over the one spot I finally snagged. 

This is what parking sometimes looks like. 


If you are in the financial district, which is where my office is, most streets are metered, and some even go from 7 am to 6 pm or even 10 pm in certain cases. These cost about $2.00/hour but can go as high as $6.00/hour. Parking garages cost around $25.00/day.  In Oakland, it depends, but usually it is not hard to find parking. My street has street sweeping every other week. I have forgotten to move my car, and the ticket was about $80.00. That is an expensive mistake! You're welcome Oakland. 

Do you have to pay tolls? We have tolls on our bridges; I have to go over the Bay Bridge to get to San Francisco, which is a $7.00 toll. The others are the Richmond Bridge, which is also $7.00 and the Golden Gate Bridge, which recently went to $8.00 if you have a FasTrak and $9.00 if you just go right through. The Golden Gate and Bay Bridge do not accept cash anymore (this was on the way out but was sped up due to COVID). 

What is your commute like? I live in Oakland and work in San Francisco. It is about 13 miles between my house and the office. There is a bridge between the two and there are not pedestrian walkways on this bridge. When I used to go to work later, I utilized the casual carpool. I wrote a post about that here. Then I started working earlier and I rode my bike to the BART train station each day. This took about ten minutes to ride the bike and 20 minutes to ride the train. Once I arrived in the city, the train station was about a five minute walk from my office. In 2018 they started doing maintenance on the train (it goes under the bay in a tunnel, which needed repairs) each morning, so they subbed out the early trains with a bus. At this point, I sometimes drove to the BART station, which took about seven minutes, where I would take the bus into the city, which took about 20 minutes. Once I arrived in the city, the bus station was also about a five minute walk to my office. 

Then....COVID hit, people stopped going to work, train schedules got cut drastically and people were afraid to take public transportation. I have continued going into the office the whole time and have been driving in each morning ever since. Let me tell you, at first, it was like buttah! The 13 mile drive took me about 15 minutes, and there were no cars on the road. As people started coming back, it took a little longer, but I go in around 5:00 am, so even on a heavy day, it is more like 20-25 minutes. As mentioned above, this does entail a toll charge and parking, but my work was paying for the parking due to the pandemic. Starting April 1st, they will no longer pay for parking. 

So...what will I do then? That is a great question. I will go back to taking public transportation. Unfortunately, they have not fully reinstated all of the buses and trains due to light ridership in the past two years, so the times are more limited. I will have to go in earlier than I need to or later that I want to, so earlier it is! At first, I will once again drive to the BART station and take the bus in. I may eventually transition back to the bike/BART commute after I get the hang of the scheduling. 

What is in your trunk? My coworker once had to put something in my trunk and when I opened it he gasped. I assumed he was disgusted by how much stuff I had in there, but actually he thought it was really tidy. I thought it would be fun to talk about what is in my trunk. My favorite thing, and one I have used more than once is a 3-in-1 car jumper, battery, and air compressor. Once charged up, it can be used to charge appliances (it has USB ports and a 110 volt outlet), jump your car or pump up tires. It also have a utility/flashlight function. I could write a whole post about this tool alone. It is very cool.

I also have a trunk organizer, which is probably why my friend thinks I am organized. In it is a first aid kit, 2 gallons of water, a towel, a blanket, an umbrella, more jumper cables (belt and suspenders!), dominoes & a deck of cards (you never know...), and an extra pair of running shoes. I also have a "running box" which includes an extra set of running clothes, socks, a hat, a sweatshirt, flip flops, a headlamp, a flashlight, a few snacks, a change of clothes for afterward and baby wipes. I guess if I were stranded, I could survive for at least eight days by utilizing the things in my trunk (if I drank one liter of water a day).

Your turn! Answer one or all of the following: What is your car situation? What is the parking like in your area? Do you have to pay tolls? What is your commute like? What is in your trunk?

1.04.2022

Looking Back: 2021 Money Pie

It's money pie time again! This year I spent 10% more than I did last year, mostly due to home expenses, travel and dining out as I will detail more below. Once again this year, I spent the time to itemize my Amazon, Costco and Target trips so that the categories were more accurate (at the beginning I used to just call the whole expense "groceries" or "shopping"). 



Home: This category includes mortgage, insurance, property tax, utilities, internet & phone. As you can see, it makes up a large chunk of my spending. Why is this? Well, I decided to refinance late in 2019, which lowered my monthly payment. Instead of spending that on something else, I decided to keep paying the same monthly amount and in 2021, I decided to add a little extra. Why do this when interest rates are so low, you ask? This could be a post in itself, but the short answer is that I am diversifying. To top it off, I had some tree work done, which is not cheap, and also had to buy a couple of other unexpected items. 

Travel: This category includes airfare, car rental, lodging and any groceries, dining out or transportation incurred while traveling. In 2021, not surprisingly, I spent 110% more than I did in 2020 on travel. Of course, in 2020, I spent practically nothing, so the numbers are a bit misleading. It was still my second highest expense of the year. As I have said in years past, I am a pretty good saver, but I find travel to be one thing that is worth spending money on. I never consider it a waste of money.

Groceries & Dining Out: Although groceries was my third highest category, I actually spend 11% less on groceries in 2021 than I did in 2020. However, I made up for that in spades by spending a lot more in dining out. In fact, I was so glad to go back to eating in restaurants that I overdid myself by taking several different friends out to fancy dinners. My favorite? Monsieur Benjamin. Oui, oui! 

Transportation: This includes Lyft/Uber, public transportation, car insurance, maintenance and registration, gas, tolls & parking. It was really high because I am still driving to work, which not only entails a daily toll but the gas cost really adds up, especially in California where gas is currently over $5.00 in some places! 

Health: This category includes health insurance, out of pocket costs, massages, medicines and vitamins etc. Health insurance costs went up last year (again) but I spent less in out of pocket costs. At the end of 2020, I finally canceled my gym membership, which saved me about $300 in 2021. 

Entertainment: This category includes music, theater, and running & camping expenses. This year I did not spend much on this as I did not go to many events and I  had a lot of camping stuff left over from last year that I could use. 

Shopping: This category includes toiletries, clothing, misc. home items & appliances, pet stuff, electronics and books. The main cost in this category was office supplies, more specifically a new printer. I spent $0 on clothing. 

Misc.: This category includes gifts, haircuts, fees for credit cards, taxes and education expenses. Mostly, this category was gifts, as I spent nothing on haircuts this year (I used YouTube and cut my own hair once and had a friend do it another time) and was reimbursed for my education expenses. 

Well, there you have it. 2021 in a nutshell. 

What did you spend the most on in 2021?

1.19.2021

Looking Back: 2020 Money Pie

Unfortunately, in 2019 the system that I use for compiling my data had a glitch and I decided not to recreate everything, so I never got 2019 data all put together. This year, I was interested to see how my spending stacked up to prior years, as I did not spend as much money on travel, which is generally my second biggest category. I also wanted to break out some of my shopping a little more fully, and so I spent some time looking through my Amazon, Costco and Walmart receipts since a lot of those are multiple categories, whereas in years past I just called Costco "groceries" and Amazon "shopping." 

So without further ado, here is the pie!



Overall, in 2020 I spent 94% of my average over the years of 2016-2018, or 6% less than normal. The categories that decreased the most in dollar terms were Travel and Dining Out and the categories that increased the most were Groceries and Health. 

Home: (Increase 2% YoY) This category includes mortgage, utilities, garbage, taxes, insurance and garden. As you can see, this is my largest category by far. However, I spent a little more than I normally do in this category, and I chalk that up to the fact that I decided to start paying a little extra toward my principal midway through the year. Otherwise this category dollar-wise has been very consistent through the years and is always my largest.

Groceries: (Increase 62% YoY) Woof! I spent a lot more on groceries than I normally do, which is probably due to the following: (1) I bought a lot of non-perishables online and I probably went a little overboard. (2) I stocked up at Costco a few times. (3) I decided to experiment with making my own dehydrated meals and also tried some new foods for camping trips (that could be its own post!) (4) I  cut out sugar and am eating more natural items and I tried a lot of new products for this as well (this could also be its own post). However, an interesting note is that if you add groceries + dining out, I spent less in total this year than I do on average (almost 20% less). 

Transportation: (Increase 14% YoY) This category is often my third biggest as it consists of daily public transportation commute costs plus any car related costs like gas, tolls or maintenance. This year, due to COVID, I actually did go into work every day, but I drove instead of taking public transportation, which upped my car related costs significantly. In addition, I had to buy two new tires and a new side window for the Red Rocket in 2020. 

Travel: (Decrease 64% YoY) This includes any flights, meals, lodging or activities while traveling. This year I took one flight and paid for one that I did not use. Otherwise, I took a couple of road trips. I tried to be more diligent with breaking down my costs, so this does account for all camping, food, gas etc. that I used while doing the road trips, but there were a lot of cooler and backpack meals and wild camping, so the number was very low. 

Misc.: (Decrease 36% YoY) This category is mainly gifts. There are a few credit card fees in there as well, but they are minimal. Normally this includes education, hair cuts and massages, but well...I paid for my education in 2019 and it's still postponed, and there have been no hair cuts this year and I decided to put my one massage in Health instead. 

Entertainment: (Increase 10% YoY) This consists of any running, camping, music or national park related items or any other fun activities (excluding travel). This category was larger than normal because of my different allocations this year. In prior years, running shoes were under "shopping" but this year I decided to put them under entertainment. In addition, if I bought food that was only going to be used for camping (a bit of a grey area at times), I categorized it here. The big ticket items were a new tent, two concerts and three pairs of running shoes (I always buy them if they are on sale). 

Health: (Increase 69% YoY) This consists of gym membership, health insurance, doctors visits and things like vitamins and protein powder. This year my insurance increased a little, and I also spent some money trying to figure out a pain I had in my foot at the beginning of the year. However, I did finally cancel the gym membership that I was paying for every money but not using! 

Shopping: (Decrease 29% YoY) This category was mostly toiletries, home supplies and kitchen gadgets, with the bulk of the total going towards a new Ninja. Actually my second largest subcategory here was pet supplies. Gato had fleas a few years ago and I have happily spent money on flea treatment and prevention since then. Fleas give me nightmares.  

Dining Out: (Decrease 90% YoY) Most of my dining out is covered in travel. In fact, I only dined out a few times in January and February when I had some friends visit and we went for beers etc. Otherwise, I bought burritos for my two office mates mid-COVID but that is it! 

The Verdict?: I am now an expert at online shopping. I know where to find a good sugar-free jerky and that MRIs and pet supplies are expensive. Reading and weeding are both free. Owning a house is not. I wonder if next year's grocery number will be lower because I will still be working my way through all of the beef sticks and protein powders that I bought this year. 

Did you spend more or less in 2020 than you normally do? Which categories do you think differed the most year over  year? 

1.04.2018

Looking Back: 2017 Money Pie

To welcome in the new year, I always take a moment to look back on where I spent my money. I find it very helpful in organizing my spending for the year ahead. In addition, it sometimes gives me a wake up call, as often it is easy to spend a lot in one category without even realizing it (cough, Costco, cough). You can find prior years here: 2014, 2015, 2016.



This pie is for spending only, and does not include savings. Here they are, in order of greatest to least!

Home: This category includes mortgage, utilities, taxes and insurance, as well as other misc items, such as appliances, stuff from the hardware store, home improvement and furnishings. This year I actually spent nearly the exact same amount dollar wise as I did last year on my home category. However, I bought a lot of backyard materials this year!
 
Travel: Once again, travel ended up high on my list. This category includes flights, lodging, food and transportation when away from home, including long distance run trips and road trips. I did a 2,000 mile road trip to Wyoming as well as road trips to both Oregon and Mammoth this summer. I also went to Minneapolis for Lisa's wedding and to Bryce for the 100 miler!
 
Transportation: Last year I bought a car, so this year my transportation category was significantly lower. However, this still includes the daily commute to work (including pre-tax dollars) as well as registration, insurance, gasoline and maintenance for the car. Luckily I have my trusty bike, so much of the daily transportation is done sans vehicle. However, this also includes weekend trips for running etc.

Groceries/Dining Out: In 2017, I actually spent 17% less on food than I did in 2016. I had to double and triple check that number though, as I did not feel that it could be correct. However, after checking, I did confirm that I spent about the same amount dining out, but a lot less on groceries. The culprit? Costco! In 2016, I took 5 big Costco trips, whereas in 2017 I only took 3 and man, what a difference a Costco trip makes!!

Misc: This includes personal care, toiletries, gifts and donations, credit card fees and things like that. This year my dollar amount increased significantly! The bulk of it is gifts, but I had some registration/education fees to pay this year which really upped the dollar amount of this category a lot.

Health: This includes pre-tax deductions and any copay or charge for the gym, prescriptions, contact lenses etc. The bulk of this percentage is health insurance.

Shopping:  This category pretty much includes anything I buy on Amazon, regardless of the use. I am too lazy to sort through the purchases to see what is food related or what is not. In fact, that could be a big reason why my food spending was so much "less" in 2017, as I do buy a lot of dry goods on Amazon. In addition, much of it could probably also go towards the Entertainment or the Travel categories as well, as I did buy some camping/hiking related items as well.

Entertainment: This includes movies, baseball games, and running related (or other hobbies) expenses. This year, most of it went to race fees. I did travel for running, but I kept that in the travel category.   

The Verdict: In 2017, as planned, I did spend less dollars than last year. However, it's a bit of a cheat, as I bought a car last year. Without the car purchase, I would have spent about 9% more in 2017 than I did in 2016. I did see big increases in Health (I blame premiums), Misc (education) and Shopping (laziness of not sorting the category, aka human error). I spent a lot less on Groceries (sorting/human error/Costco) and Transportation (car purchase) and pretty much the exact same amount on Dining Out and Home.

What should I do differently? I would say that aside from spending less on shopping, I should probably get a better categorization system for Amazon purchases. Otherwise, I could travel less. NOT! Actually, most of my travel involved camping, so the bulk of the cost was flights and transportation costs.

Do you tally up your spending at the end of the year? Do you budget for next year? What was your highest spending category in 2017?