I’m updating my chart for the last time for y’all! We’re married and merging finances and Mark doesn’t want his business all over the interwebs for the world to see and know and discuss. Which, fair.
In 2024, I spent substantially more than in the past few years. It was on a lot of things. Trips. (Sri Lanka & India, Central Asia, The Dominican Republic, a few staycations, visits home to Chicago). Wedding expenses. (Wedding coordinator, Mark’s ring). A clothing subscription, nutritionist, contact lenses, chemical hair straightening, and gym membership I’ve told you about.
And with upcoming wedding expenses, I don’t think next year will be any cheaper. Eek! That’s okay. I’m not complaining, I promise.
Anyway, here’s last year’s chart.
So beautiful.
The green line is my average monthly projected passive income assuming a 3% rate for inflation and a 7% rate of return on my stocks. The red line is my average monthly expenses for the year. The equation I used for the green line is:
(Net Worth X .04)/12
Here’s 2024’s chart.
I spent $35,165.68 in 2024. Which seems like a lot.
The markets, inexplicably, are up right now. I’m a little nervous about the future of civilization and the world and thus stocks, but for now, it’s weathering.
My expenses went up at a steeper rate than my projected passive income went up. I’m still underspending from what I allow myself to spend, but at a larger percentage than in years past.
That’s my chart. I’m uncomfortable with how much I’m taking out of my nest egg, but also fine with it enough to not do anything to change.
Oh, except Mark and I changed the way we currently handled our finances. Previously, we had a spreadsheet we updated every month with the shared expenses we put on our personal credit cards and then we squared up via Venmo.
Now, we opened a joint credit card which we used for all “us” purchases and a joint bank account that we each contribute the same amount to, replenishing it when need be.
Actually, we opened up two bank accounts. One for everyday expenses and one for the wedding. We each also kept our personal credit cards and bank accounts.
I took over the spreadsheeting part of the numbers, monitoring it and calculating our net worth and projected passive income versus expenses each month. Our finances are complicated and the spreadsheet goes out to column AO. So far. Mark likes to get credit cards for the perks.
So, that’s the update on the money situation. I was always super curious what other people did, so I’m sharing what we do and how it’s evolving.
Do you guys still do a chart like this? I feel like maybe I don’t need it anymore.
Heart,
Anita
A healthy chart and good luck for all the wedding planning.
Do you guys split expenses equally? We never earned the same so I always contributed 80-90% of the costs, but do you find you have similar views on what are joint expenses?
Yes and yes to both your questions. Our net worth is roughly the same, so we split all the joint expenses and we’ve yet to have a disagreement on what that means.
Congratulations Anita and Mark, it’s wonderful that you have found someone to share your life with. Husband and I married for 30 years (time flies) and have always just had a joint account, as neither of us had any money when we started out. We have been used to sharing everything, including plenty of time when I was the main earner, then years when our business was the provider and now when we both have a little part time income. I think that it is very different when you meet later in life and have been used to your own money. Just do what feels right for you as a couple, in this particular stage of your lives-it may change.
Love to hear what other people are doing! Thanks for the comment.
I haven’t done a chart exactly like that, but I have other spreadsheets and ‘custom’ tools that make sense to me. My husband is still working so it changes the calculations. We pretty much have all accounts combined and share all finances. It works well for us, though I do understand it would make some people uncomfortable. Is Mark interested in FIRE/joining you?
Mark says he’s too young to retire and wants to work on his building for as long as he can. I love where we live, so I’m on board with that! Thanks for the comment.
Oh cool, what kind of building is he working on?
He owns a five-unit building with a carriage house in the back that we rent out on Airbnb.
That sounds like a nice gig! Is he running it as a guesthouse full-time, or do you outsource it?
Would you say it’s a good business? – always thought AirBnb would be great, just not sure I’m good friendly enough as a host =)
We do medium term rental on Airbnb, so furnished 30 days or longer stays. We do everything ourselves. Except clean. We hire people to do that.
Didn’t happen without wedding pictures!
It hasn’t happened yet!
Congratulations! What are you thoughts on a prenup? Kids in the future?
I think prenups are a good idea and I would recommend them. It helps you understand and discuss how you’re going to handle finances, which is an important conversation to have, I think.
No kids for us! I’m 42 at this point, so I think that ship has sailed.