Our Financial Blueprint for a Rich Life: How We Spent $46,602 in 2014

Spring has sprung, and with it comes a fresh opportunity for financial growth. While many have long abandoned their New Year’s resolutions, we’re doubling down on our commitment to financial transparency and conscious spending. Today, we’re going to bare it all financially—that’s right, we’re sharing our complete spending breakdown for 2014!

Why We’re Sharing Our Finances

You might wonder why we’re putting our financial lives on display. As a middle-class couple with no children (yet), we want to show that it’s possible to live a rich, fulfilling life without breaking the bank. We’ve noticed that some of our friends and family are puzzled by our frequent travels, especially when they struggle to afford one luxurious vacation a year. The secret? It’s all about priorities and conscious decision-making.

Our formula for happiness is simple: live in the present while keeping an eye on the future. We believe that by sharing our spending habits, we can inspire others to align their expenses with their values and work towards financial independence without sacrificing current joy.

Breaking Down Our 2014 Spending

Let’s dive into the numbers. We’ve categorized our expenses into three main buckets: essential, discretionary, and gifts/donations.

Essential Expenses: The Bare Necessities

In 2014, we spent $12,976 (28% of our total spending) on essential expenses. These are the non-negotiables—the costs we’d need to cover even if everything else went sideways. Here’s the breakdown by category:

One interesting note: Our rent figure is actually lower than what we pay out of pocket because we offset it with income from our rental property. We’ve found that this arrangement gives us more flexibility than homeownership at this stage in our lives.

Discretionary Expenses: Where the Magic Happens

This is where we spent the bulk of our money in 2014—$24,646, or 53% of our total spending. While not strictly necessary for survival, these expenses significantly contribute to our quality of life. Here’s the breakdown:

A quick note on our travel spending: We prioritize experiences over material possessions. These trips have enriched our lives immeasurably, introducing us to new cultures, foods, and perspectives. It’s an investment in ourselves that we’ll never regret.

Gifts and Donations: Paying It Forward

We’re incredibly grateful to be in a position where we can give back. In 2014, we allocated $8,980 (19% of our budget) to gifts and donations. This includes helping our parents, contributing to charities, and even starting a college graduation gift fund for our nieces and nephews.

Giving back is a core value for us. We recognize that we’ve gotten where we are thanks to the help and sacrifices of others, particularly our parents and those who provided us with college scholarships. It feels wonderful to now be in a position to pay it forward.

Lessons Learned and Looking Ahead

Tracking our spending so meticulously has been eye-opening. We’ve realized that we can live happily on much less than we thought, and we’ve identified areas where we can potentially cut back without impacting our quality of life.

For example, we’re aiming to reduce our restaurant spending in 2015 by cooking more at home now that we’ve reduced our commute time. We’re also constantly on the lookout for unnecessary fees and charges—those sneaky expenses that can drain your wallet without you noticing.

Your Turn: Take the Financial Awareness Challenge

We challenge you to track your own spending for a month or even a year. Use a tool like Mint or Personal Capital to categorize your expenses. Then, ask yourself:

1. How much do you actually need to cover your essential expenses?
2. Are your discretionary expenses aligned with your values and bringing you genuine happiness?
3. If you lost your primary income source, how long could you survive on your current savings and investments?

Final Thoughts

Financial transparency isn’t about comparison or judgment; it’s about awareness and intentionality. By sharing our spending, we hope to start conversations about conscious consumption, aligning expenses with values, and finding the balance between enjoying the present and preparing for the future.

Remember, the goal isn’t to live as frugally as possible, but to spend consciously on what truly matters to you. For us, that means prioritizing experiences, health, and giving back while being mindful of our long-term financial goals.

What does your ideal spending blueprint look like? We’d love to hear your thoughts and experiences in the comments below!