Before write a post about the current state of my closet, I wanted to share some info that I found out about my conscious spending plan!
I borrowed Ramit Sethi’s I Will Teach You to Be Rich book from the library and I was curious as to how his ‘conscious spending plan’ would look with my own numbers. Here’s the breakdown!
(Monthly fixed costs = rent, utilities, cell phone bills, medical insurance, bills, car payments, public transportation, loans, groceries, internet and cable.)
The 60% Solution:
- Monthly fixed costs: 60%
- 401K: 10%
- Savings goals: 10%
- Guilt free spending left over: 20%
- Monthly fixed costs: 34%
- 401K: 19%
- Savings goals: 18%
- Guilt free spending left over: 19%
I consider my rent to be pretty high so I was surprised to find out that my monthly costs were so low. 34%???? Here’s why:
- I drive a hand-me down car
- I share rent with another apartment-mate
- I’m on a family plan for my cell phone
- I have no loans or debt
- I don’t have cable
- I have no medical bills to pay for since I have an HSA plan that’s funded by my employer
These percentages and my increasing net worth make me feel really proud of myself. I’m very thankful to my parents for showing me how to not get into debt. They never explicitly taught me how, but over the years I learned from their example.