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2021 Finances

This was the first year I had a real job.

Before we started working, Sydney and I got pretty deep into exploring the strategies around investing[1] and how to handle money[2]. I'm glad we did that, since I'd never properly learned about money[3] and how to think about it.

I started work during the summer, so this for around half the year:

Total Income (pre-tax)          $69,475.00
Total Savings/Investment        $18,685.30
Total Spending                  $17,903.00
Excess Cash                     $6,443.70

Resulting in this breakdown:

Savings Rate    26.89%
Spending Rate   25.77%
Tax Rate        38.06%
Remaining       9.27%

I was a bit nervous about letting the bank account get too low and investing every last bit, hence the large amount of excess cash. This year I'd like to hit a 40%+ savings rate, which should be doable with a bit of a reduction in spending and cutting the excess cash. Given Sydney and I were starting with pretty much nothing, we had to buy all the essentials to get set up, so a much slimmer spending rate this coming year is quite possible.

Last updated Thu Jan 20 2022 in Berkeley, CA

Links

1: /thought/progress-and-the-stock-market.gmi

2: /thought/fire.gmi

3: /thought/money.gmi

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