Before this year, I never actively tracked my expenses. I knew more or less how much I spent, and I’d run bank statements through money management software once or twice a year, but I never tracked my expenses in such a way that I could pinpoint exactly what each line in my bank statement was.
There are a few expenses I neglected to track this year, mostly cash transactions I didn’t grab a receipts for. All told, I tracked $11,734 in expenses, rounded up to the dollar, excluding income taxes.
I defined necessary expenses as obligations and things standing between me and homelessness, but if pressed, certainly some amount of ‘luxury necessities’ could be eliminated.
And some amount of my unnecessary expenses generate income. Those could be redefined as ‘cost of revenue’ or something else like that.
I think if I were looking to cut costs, I’d look at cutting reoccurring costs first. Netflix’s getting a bit annoying in how much they want you to watch whatever their show of the month is. After that, maybe my phone bill could be trimmed a little. Maybe I’d survive with a slower Internet connection, too.
Heading in to 2016, I’ll be tracking things a little better.