Money Matters

A recent dip in my financial solvency made me wonder where my money goes, even though I am very careful with it. What I uncovered with my analysis was very interesting.

Pre-tax deductions for my 401(k) and stock purchase plan take 17% of my paycheck. Federal and state taxes add up to 21%. My benefit deductions, a combination pre- and post-tax, come out to 4%. All in all, my take-home pay is just 58% of my total salary.

Seeing that I'm living on so "little", I wonder how my employees survive on less -- and with spouses and children to support. It's no wonder some of them have second jobs or their spouses work, too. Then they have to pay for daycare, a nice catch-22.

My mortgage is my largest expense. It's 28% of my total salary, but a whopping 49% of my take-home pay. Add to that my condo association fee (5% of total, 9% of take-home), and I've already used up 75% of my salary. Electricity costs me just over 2% of my salary and a bit more than 3.5% of my take home. The gym membership, internet access, and local phone bill are <2% of salary (<3.5% of take-home) each. Gas, water, sewer, solid waste, and cable TV are included in the condo fee. That doesn't leave me much for food, clothing, insurance, professional memberships, magazines, or Christmas presents, let alone any frivols for myself. (Bonus points -- but no money -- if you can identify the source of that word.)

I've decided to cut junk food from my grocery bill (unless it's really-really-really on sale), to see if that will improve my bottom line. Plus, I hope it will also improve the line of my bottom!

Trivia answer: In Keeping up Appearances, the fussy Hyacinth accuses her husband of being frivolous. Beleaguered, Richard replies, "In all these years, I can't remember a single frivol." (Incidentally, my dictionary lists "frivol" as a verb meaning "to behave frivolously".)