<?xml version="1.0" encoding="utf-8" standalone="yes"?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:content="http://purl.org/rss/1.0/modules/content/">
  <channel>
    <title>spending on FIFoldPath</title>
    <link>https://www.fifoldpath.com/categories/spending/</link>
    <description>Recent content in spending on FIFoldPath</description>
    <generator>Hugo -- gohugo.io</generator>
    <language>en-us</language>
    <lastBuildDate>Mon, 28 Nov 2016 00:00:00 +0000</lastBuildDate><atom:link href="https://www.fifoldpath.com/categories/spending/index.xml" rel="self" type="application/rss+xml" />
    <item>
      <title>My Utility Consumption</title>
      <link>https://www.fifoldpath.com/posts/2016/2016-11-28-my-utility-consumption/</link>
      <pubDate>Mon, 28 Nov 2016 00:00:00 +0000</pubDate>
      
      <guid>https://www.fifoldpath.com/posts/2016/2016-11-28-my-utility-consumption/</guid>
      <description>I spent some time today thinking about how much water and electricity I consume. Fortunately, my utility companies are more than happy to give me that data to play with.
Here&amp;rsquo;s what I found:
The months listed on the x-axis are the months in which my billing period begins and the period goes until the middle of the following month (for example, May actually corresponds to the period 5/15 - 6/15).</description>
      <content:encoded><![CDATA[<p>I spent some time today thinking about how much water and electricity I consume. Fortunately, my utility companies are more than happy to give me that data to play with.</p>
<p>Here&rsquo;s what I found:</p>
<p>
  <img loading="lazy" src="https://2.bp.blogspot.com/-Y2VGCCXN4g8/WDufMaNmLFI/AAAAAAAArNE/k8Ob6_NHeFwamzhdrbDWkCF77bWLa05LACLcB/s1600/electricity.PNG" alt="electricity spending"  /></p>
<p>The months listed on the x-axis are the months in which my billing period begins and the period goes until the middle of the following month (for example, May actually corresponds to the period 5/15 - 6/15).</p>
<p>As one might expect, it tends to be a little higher in the summertime than the rest of the year, due to extra energy being used to keep my apartment cool. However, I run the air conditioner very sparingly in the summertime, instead relying on my ceiling fan and my HVAC fan alone when the air is cooler at night.</p>
<p>Taking the average over the course of all months, I come up with 87 kWh. If we only use the past 12 months to avoid any seasonal bias, I get 86.5 kWh. So, let&rsquo;s say I use an average of 87 kWh / month, which comes out to 1,044 kWh per year.</p>
<p>For comparison, the average American household used <a href="https://www.eia.gov/tools/faqs/faq.cfm?id=97&amp;t=3">10,812 kWh last year</a>. That&rsquo;s over 10 times as much as I used over the same period. I live in an area with a pretty <a href="https://en.wikipedia.org/wiki/Humid_continental_climate#Hot.2Fwarm_summer_subtype">wide variety</a> of temperatures, so it&rsquo;s not like I have it easier than most when it comes to weather. I&rsquo;m at a loss to think of how people can use so much electricity.</p>
<p>A similar picture emerges for natural gas:</p>
<p>
  <img loading="lazy" src="https://4.bp.blogspot.com/-yTm2fbfvNUw/WDuq4xNzhvI/AAAAAAAArNU/XZVot_7hKesQedlV2MReyYgGrxIGxWYbACLcB/s1600/nat%2Bgas.PNG" alt="natural gas spending"  /></p>
<p>Dates are for when the meter was read by the gas company.</p>
<p>I&rsquo;m not sure what happened in August and October of 2015, since those points were abnormally low, so I will throw them out for calculating the average usage. For all the data I have (minus the two low readings as previously mentioned), I average 1844 cubic feet per month. For the last 12 months, that average is 1728 cubic feet. So let&rsquo;s call it 1750 cubic feet per month, which is 21,000 over the course of a year.</p>
<p>At first I couldn&rsquo;t really find any good numbers for the average natural gas consumption in the US, but I finally stumbled upon this number: <a href="https://www.epa.gov/ghgemissions/household-emissions-calculator-assumptions-and-references">5583 cubic feet</a> of natural gas per month per household, which comes out to about 67,000 cubic feet per year. This is over 3 times what I use.</p>
<p>So the bottom line is that I have no idea what the rest of you are doing in your homes that would cause you to use 3 times the gas and 10 times the electricity that I do. Sheesh.</p>
]]></content:encoded>
    </item>
    
    <item>
      <title>Expenditures: Me vs. the Average Joe</title>
      <link>https://www.fifoldpath.com/posts/2016/2016-09-16-expenditures-me-vs-the-average-joe/</link>
      <pubDate>Fri, 16 Sep 2016 00:00:00 +0000</pubDate>
      
      <guid>https://www.fifoldpath.com/posts/2016/2016-09-16-expenditures-me-vs-the-average-joe/</guid>
      <description>I thought it would be interesting to compare my expenses against the &amp;ldquo;Average Joe&amp;rdquo;, to see how different my lifestyle really is from the norm.
It turns out that the Bureau of Labor Statistics collects data on this sort of thing every year as part of the Consumer Expenditure Survey. And, lucky for me, the most recent data sets for 2014-2015 were released only 2 weeks ago. So, I dug in.</description>
      <content:encoded><![CDATA[<p>I thought it would be interesting to compare my expenses against the &ldquo;Average Joe&rdquo;, to see how different my lifestyle really is from the norm.</p>
<p>It turns out that the Bureau of Labor Statistics collects data on this sort of thing every year as part of the <a href="https://www.bls.gov/cex/">Consumer Expenditure Survey</a>. And, lucky for me, the most recent data sets for 2014-2015 were released only 2 weeks ago. So, I dug in.</p>
<p>Since I am single, male, and between 25 and 34 years of age, that is the cohort that I will be comparing myself against. That data can be found in <a href="http://www.bls.gov/cex/2015/CrossTabs/singlesbyage/malesage.PDF">this table</a>.</p>
<p>At first, I wanted to compare my expenses with the average cohort of my age category by category, but some of my spending categories do not match up very well with the BLS&rsquo;s, so it was hard to make direct comparisons. BLS was oddly specific in some cases (floor coverings? really?) and notably lacking in others (I guess nobody does any travelling?). For the more ordinary expenses, I was able to make some direct comparisons with the last 12 months of my own spending:</p>
<table>
<thead>
<tr>
<th>Average Joe</th>
<th>Expense</th>
<th>Me</th>
</tr>
</thead>
<tbody>
<tr>
<td>$13,324</td>
<td>Housing</td>
<td>$9,090</td>
</tr>
<tr>
<td>$697</td>
<td>Cell Phone</td>
<td>$394</td>
</tr>
<tr>
<td>$211</td>
<td>Natural Gas</td>
<td>$241</td>
</tr>
<tr>
<td>$835</td>
<td>Electricity</td>
<td>$320</td>
</tr>
<tr>
<td>$238</td>
<td>Water</td>
<td>$507</td>
</tr>
<tr>
<td>$4,563</td>
<td>Food</td>
<td>$2,366</td>
</tr>
<tr>
<td>$1,604</td>
<td>Gasoline</td>
<td>$542</td>
</tr>
<tr>
<td>$473</td>
<td>Car Expenses</td>
<td>$1,172</td>
</tr>
<tr>
<td>$36,803</td>
<td>All Expenses</td>
<td>$21,538</td>
</tr>
</tbody>
</table>
<p>I was not too surprised to see that I am spending less than average on housing compared to other single guys my age. I live in a very inexpensive part of the country so my housing is very cheap, and I get a lot for it. My apartment is much larger than I actually need and I would be renting a smaller place if I had more options.</p>
<p>I was surprised to see how much more people spend on electricity, almost 3 times as much as me! Where is all of that going?? TV? A/C? Probably A/C, going by my upstairs neighbors. On the other hand, my water bill is almost twice as high as average! I only use about $5 / month of actual water, but my town levies so many taxes and fees for delivery, sewer services, etc. that I end up paying about $40 / month regardless of how much water I use. I guess that&rsquo;s one of the drawbacks of living where I do.</p>
<p>Not surprisingly, the average guy&rsquo;s food budget is over twice as high as mine. I have a personal rule that I never eat at a restaurant alone. If I am going to be paying for restaurant food, I had better be there as a social event and not just because I was too lazy to prepare food for myself at home. As a result, I cook/prepare nearly all of my meals, and that&rsquo;s how I come out so far ahead on food spending compared to average!</p>
<p>I also drive a lot less than the average guy my age, so that makes my gasoline spending 3 times less than average. I&rsquo;m not too surprised to see this, as I made a deliberate effort to live as close to work as possible in order to shorten my daily commute. I also don&rsquo;t drive much outside of work; basically, I go grocery shopping once a week and take occasional trips into the city or to the airport. The high car expenses on my part is due to purchasing a full set of winter tires 10 months ago. Besides that, I have only spent money on two oil changes, wiper blades, air filters, and a car wash.</p>
<p>Finally, after looking at the total spending numbers, I come out way ahead! According to the BLS survey data, single males between 25 and 34 manage to spend $36,803 per year on average! By comparison, I spent only $21,538 in total over the past year. And my spending included two week-long international trips (UK and Japan) and a cross-country flight to visit family over the holidays! Where is everybody else&rsquo;s money going?!</p>
<p>&hellip;well, I guess the answer to that question is in the data. I see that the BLS survey included pension/retirement contributions under spending (I count that as savings for myself), which accounts for a little over $4,000 within my age group. And it also counts net outlay on vehicle purchases (which may or may not account for depreciation, I&rsquo;m not sure), which totals about $3,000 per year on average. Still, that only accounts for about $7,000 of the difference, with about $8,000 per year apparently wasted?</p>
<p>Even more worrying, the pre-tax wage income for this group is only $40,463, which becomes $37,018 after taxes. Assuming that 6.2% of the pre-tax wages go to social security (totaling just over $2,500), that means that the average single guy around my age is only saving about $1,500 per year for retirement beyond his forced social security payments! This comes out to just 4% of his after-tax income! At that savings rate, he has absolutely no chance at retiring early, and may struggle to get by even with social security if he does not make serious changes to correct his course! I recognize that I am fortunate to have a high-paying job which allows me to save a large portion of my income, but at the same time I am spending around $10,000 LESS than the average single guy of similar age. If Average Joe mirrored my spending habits and saved that extra $10k instead of spending it, his savings rate would rise to about 30% of his after-tax income (even higher if he puts that money in tax-advantaged accounts like a 401(k) and/or IRA! With a 30% savings rate, you can retire after about 28 years of working, assuming that you start with nothing. It doesn&rsquo;t sound very impressive, but it would give even the Average Joe a good chance of a decent retirement around age 60 (slightly earlier than average!) without depending on social security for handouts.</p>
<p>With 80% of my cohort having attended college (according to the survey, anyway), it&rsquo;s a shame that so many of them are making such poor financial choices! I hope that things improve for them in the future!</p>
]]></content:encoded>
    </item>
    
  </channel>
</rss>
