Money as Lifestyle

Recently I’ve been reading The Simple Dollar. It’s fun, well-written, and makes a great deal of sense. At the same time, it is part of a genre of what I might call “money as lifestyle.” I would like to see money as a tool; I need enough of it to live the kind of life I want to, with the full knowledge that I’m going to have to make trade-offs. Sometimes these trade-offs favor expenses which lead to stress; sometimes they involve deprivation. Money, though, never becomes the primary object.

The Simple Dollar and blogs like it, though, read like evangelical tracts. They preach a lifestyle in which the goal is frugality and saving. Again, I am all for frugality and saving, and I know I can take some lessons from this kind of writing. But this intensive focus on money is surely counterproductive. The point, IMHO, is not to “make the switch” to a new way of thinking about money in a way that privileges (saving) it, but to develop habits that allow you to live a viable, fun, life without worrying about money.

Real Numbers

I’ve been asking others for their financial numbers for some time now, so it is only right that I go first. This is, of course, not entirely accurate – I know that my deficit is larger than indicated here. I also know that I would need to start tracking my expenses better in order to locate the bleeding. But let’s go one step at a time.

Two other preliminary comments: Posting this makes me feel naked and vulnerable. It makes me think about how we are trained to think and talk about money. So while I could always use feedback (which numbers seem way off-base to you?), be gentle. Second, as I indicate in my previous posts, this is in no way an attempt to whine or otherwise complain. To have this kind of income is a blessing, and our inability to live within it is entirely a matter of our own choices. But that’s what financial management is all about, isn’t it? Choosing some things over others.

Anticipated Income, 2008: $160,000

Expenses (annual):

Income Taxes (including FICA) $21197

School tuition $24000

Health insurance $4749

Dental insurance $1200

Misc. health costs $3125

Contributions to retirement accounts $7008

Mortgage payment $31992

Home equity payment $5040

Student loan payment $1260

Auto payment (Note A) $2400

Auto insurance $1670

Umbrella insurance policy $259

Professional Membership Dues $614

Auto gas and maintenance $2320

Food and household (Note B) $16220

Utilities (Note C) $4520

Gas and Heat $3200

Clothing $2700

Recreation $4560

Vacation $5000

Life insurance $1213

Church dues $1200

Children’s childcare (Note D) $4008

Children’s after school lessons $6350

Summer camps $5200

Miscellaneous (including haircuts) $3000

TOTAL EXPENSES $163405

NOTES:

A: This is really a $200 payment made to a very low interest credit-card to which we transferred the car loan a few years ago.

B: Our grocery bills average about $200/week ($10400); we eat out rarely. Other costs in this category include routine household maintenance ($1500); cleaning ($3120); lawn service ($1200).

C: Electricity: $1560; Water and sewer: $800; Telephone, internet, cable (bundle package): $1200; Cell phones: $960

D: We employ a babysitter for about six hours/week @$13/hour during school weeks (36/year): $2808. For vacation and transition weeks, we paid approximately $1200