If you’re like me, you know how much your household costs to operate monthly. According to the Ninja budget we are looking at roughly $3,400 in relatively fixed expenses. This works out to about $40k each year.
I’ve always looked at my expenses on a monthly or annual basis, but I thought we could change things up a little bit on this beautiful (at least beautiful here in San Deezy) Monday morning and see what our daily operating cost is.
Here’s what expenses I’m considering in my initial calculation…
Food: $500/mo (we like good food!)
Cell Phone: $180/mo (don’t pay this bill yet, but will begin in February)
Car Insurance: $140/mo
Health/Dental/Vision: $300/mo (pre-tax)
Debt payments: $0/mo
Utilities: $0/mo (our landlord pays em all)
There ya have it. $3,400 in relatively fixed expenses. Now on to the uber technical formula I used to figure out our daily cost….
Boom. I gotta come up with $111/day to make sure the wife and I are taken care of. If we added all the variable expenses in to the equation (entertainment, household. clothing, etc) we’d be at about $124/day and if we get all realistic up in hurr by adding the (Roth, 401K, and taxes), we are looking at $204/day.
It’s important to remember these number are DAILY. Like 365 days in a year daily. You know why that’s important? Well, because most of us full-timers, are only getting paid for 260 days of work. That means there’s 100 days a year we cost money, but make nothing. Crazy!
I think the ultimate goal for most of us would be to maximize our daily income and minimize our fixed costs. This allows flexibility and freedom, and last time I checked, most people like freedom (no offense to those of you in communist countries).
So, reader, how much do you cost a day? What’s your daily ‘fixed’ cost (expenses you can’t really avoid or flex much)? And If you’re feeling really math-letic, what’s your ‘all in’ cost per day (taxes, savings, and anything else you spend money on)?