“Annual income twenty pounds, annual expenditure nineteen pounds and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and six, result misery.”
Charles Dickens, David Copperfield
No Brit could live on £20 a year these days (a single McDonald's meal for three costs only a bit less than that). And nor could I survive on the E6 basic monthly pay of $800 that I got in 1980.
But Dickens' point remains valid.
I have no idea how your expenditure relates to the current, average American household budget, but that should be almost as irrelevant to you as it is to me. The only thing that matters is that you can cover the basics, afford enough of the nice things that make life worth living and put aside a little for the future on your present income. From what I've read, an awful lot of Americans who would consider themselves middle class are living pay-check to pay-check. They have no financial leeway, so even a relatively small emergency like needing major car repairs can dump them into a vicious downward spiral.
I do still have abit of spending money and I put some of that back to save. I always assumed I was really frugal because I buy cars with cash and have never had a car payment. I never buy the best of anything I always get the cheap stuff cheap clothes etc. It surprised me when I added my expenses up how much they were but im assuming its less than most people's because I do not have a car payment.
How much is too much monthly expenses
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“Annual income twenty pounds, annual expenditure nineteen pounds and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds and six, result misery.”
Charles Dickens, David Copperfield
No Brit could live on £20 a year these days (a single McDonald's meal for three costs only a bit less than that). And nor could I survive on the E6 basic monthly pay of $800 that I got in 1980.
But Dickens' point remains valid.
I have no idea how your expenditure relates to the current, average American household budget, but that should be almost as irrelevant to you as it is to me. The only thing that matters is that you can cover the basics, afford enough of the nice things that make life worth living and put aside a little for the future on your present income. From what I've read, an awful lot of Americans who would consider themselves middle class are living pay-check to pay-check. They have no financial leeway, so even a relatively small emergency like needing major car repairs can dump them into a vicious downward spiral.
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Anonymous Post Author
2 years ago
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I do still have abit of spending money and I put some of that back to save. I always assumed I was really frugal because I buy cars with cash and have never had a car payment. I never buy the best of anything I always get the cheap stuff cheap clothes etc. It surprised me when I added my expenses up how much they were but im assuming its less than most people's because I do not have a car payment.
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olderdude-xx
2 years ago
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Good for you.... Keep up that kind of frugality and it will pay huge dividends later in life.
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dude_Jones
2 years ago
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Agzactly. When your top concern becomes diversification, you'll know you played the game well.