Here’s a recent email from IWT reader Richard A.
How would you answer his question?
“I have no idea why I’m writing this but you seem like the only person that would even care and/or be eligible to say I told you so.
I live a pretty normal life. House, car, girlfriend, occasionally going out. I max out my 401k at work and put enough away each month to hit my Roth IRA yearly limits. I put away money for an emergency fund, vacation and gifts (bday, xmas, etc). Other than that I don’t wear fancy clothes or drive a fancy car or do/own anything I’d consider “rich people” things. I make a good wage so I’m not the kind of person to sit down and look at numbers very often, set it and forget it right?
And yet I spend $140 over my monthly income each month on just basic expenses, savings and retirement! WTF?! I MAKE $90 fucking thousand a year (pretax of course). How am I spending more than that a month? I just don’t understand. My lifestyle hasn’t changed from when I was making $50k/year.
It’s really just shocking and eye opening and I’m sitting here dumbfounded. Thought you might enjoy. And for shits and giggles here is my list of monthly expenses.
car payment – 300
mortgage – 1400
car ins – 260
water/elec/gas – 230
misc expenses (netflix, gf cell etc) – 70
gf bills – 600 (car, ins, medical, etc)
roth ira – 400
emergency fund – 500
vacation – 240
gifts – 80
spending cash – 400
mind blowing. mind blowing.”
Be the expert: What would you tell Richard? BE SPECIFIC and consider not just the numbers, but the psychology of spending.
Leave a comment below.
P.S. My $1,001 social experiment ends tonight. I’ll pick and announce the winner soon. There’s still time to enter, though: