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Seeing the glass half-empty...

May 10th, 2006 at 12:08 am

As I caught up to date with my budget, I figured something discouraging out: The top 3 categories in my budget account for 59% of my spending and I can't/won't do anything about it.

Taxes (Federal/State/FICA/OASDI) top the list at 25% of our gross pay. I already max out our 401(k)s, take advantage of FSAs, pay pretax for health and commuting expenses, itemize deductions, and invest in low-turnover, growth mutual funds. Other than the drastic measure of quitting my job (which I don't want to do), I can't think of anything else to get this category down.

Mortgage/Property Taxes/House Insurance accounts for 17% of gross pay. We have 11 years left on a 15-year fixed mortgage at 4 5/8, which is great. We shopped around for the best house insurance (although I do need to review our coverage to make sure it meets our needs), and property taxes are going up in August, though the final numbers aren't in yet. I pay tax and insurance directly so I don't have an escrow account but again, short of moving (which I consider extreme), I don't see what else I can do to get this down.

Savings account for 17% of gross pay, and include our 401(k) contributions, and savings for our kids' college educations. I'm trying to boost this up, not cut this down, so it's staying where it is.

After the big 3, the next category is at 5% of gross pay, and they all go down from there. So the long and short of my rambling is that it's a bit discouraging to realize that you don't have any "home runs" left to hit. It's great to get the utility bills down, keep grocery spending under control, etc., but when 59% of your spending is locked up in 3 things you can't chage, it's a bummer.

So I will continue to focus on the little things. I went through an exercise last spring where I went line item by line item on my budget and think it's time to do that again. 4 singles=1 home run...

3 Responses to “Seeing the glass half-empty...”

  1. Carolina Bound Says:
    1147222326

    I've had the same discouraging revelations. The things that are under my control account for so little of my spending. Like you, I've decided to plug away at the little things, since they're all I've got to work with. Sigh.

  2. Thrifty Ray Says:
    1147227192

    and the good news is CC debt is not in the top three....Smile
    You hit the nail on the head that accumulating the small wins will add up in the end!!

  3. PRICEPLUS Says:
    1147493189

    Life, using your baseball analogy, is made up of hitting singles not home runs. 4 singles score a run. Little victories add up!

    You have your health, food on the table, and a roof over your head. You have access to medical care. You have clean water. You have family and friends. In the end you are doing much better than you might at first think!

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