Monday, March 26, 2018

Top Three Life Expenses

Just look at this interesting chart.

There are several things that stood out to me here, but most notably these:

  • Look at how much housing takes up at every single level. No wonder I was able to accumulate such wealth by paying off my mortgage early.
  • Food is a category that most people spend way too much on IMO. Almost every single person we coached spent multiples of what we did on food (much of it on expensive, processed, branded products and eating out) even when we had more people in our family.
  • Transportation is a huge money suck. This information makes a good argument for living close to work, driving a car until it can't go any more, and keeping these costs as low as possible.

In fact, if you look at these three costs, they make up half the spending at almost every income (much more than that at lower income levels).

Here are some quick thoughts on how to reduce the spending in each area:

Doing these will make a MASSIVE difference in your budget and free up resources you can use to save and ultimately retire early.

Via Money 101 http://www.rssmix.com/

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