Just a quick follow-up on the Spending Tracker.

I’ve been recording the amount that I’ve spent for 54 days now and it seems like the “average spent per day” has stabilised at around $50. By the standards of most people around the world, that must be an astronomical sum. Being able to spend $50 a day already puts me in the top end of the Global Upper-Middle Income.

global-income-pew-study

Anyway, this post isn’t about that. This post is just some clarification on what and how I track my spending:

  • I realised that it would have been easier to track cash as it flows out of my bank account. However, my over-zealous self started recording receipts even though it was charged to my credit card and the bill would only come some weeks later. You could just track the cash outflow when you pay your bill, that may be easier and would more accurately reflect the needed liquidity for cash.
  • I recognise that what I spend now is obviously not going to reflect the same kind of spending if I choose to stop work and it also does not reflect lifestyle changes at a later stage in life. For example, if I stop working, it’s highly likely that my spending on coffee and lunch will go down. As cheap as my coffees and lunches are, it can’t be cheaper than buying ingredients to prepare my own meals.
  • The tracker isn’t meant to help with granular budgeting so obviously, it’s not meant as a feedback system to know where to cut spending from. I honestly don’t see the need for that. If I can’t even tell where the bulk of my spending is going to, then I’m in trouble.
  • I also haven’t had the major once-a-year expenses hit my tracker yet. For example, I pay about $3,000 in life insurance premiums once a year. When that time comes, it’s going to raise the “average daily spend” by A LOT.

If you’ve been using the tracker or if you have been using some other system to figure out how much your average daily spending is/will be, do let me know in the comments below.

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