Burn rate can either reduces or contributes to long term look-ahead worry. Since my bachelor years, My monthly burn rate has increased all the way to $5k – $6k, largely due to the taxes (https://tanbinvest.dreamhosters.com/2016/10/21/after-tax-income-be-careful/)
One reason — when living alone (like White Plains) I enjoy and take pride in my “simple lifestyle”. However, when my kids are with me, I see such a lifestyle not as simple and beautiful but impoverished and deprived. I want a bigger home for them, toys, enrichments …
When a bachelor, my burn rate was below $1k excluding rent. Contrast the recent peak, when my burn rate exceeded $10k/m
- $2.5k mtg
- $2k on average UChicago
- $1.5k on average allowance paid to wife and GM
- up to $1000 “taxes” including utilities, MRT, town council, school bus
- —– (7k so far) ——
- $1200 on average pre-school fees. $1400 -> $800+$300
- $300 insurance — annually Aviva $600 + AIA $1700 + AXA $1100 + Prudential $400 + MSIG $300
- $500 training for boy (on average swim $100, fitness $300, piano $60, home tutor $150, ad-hoc community center courses)
- $400 NTUC
- $500? (on average) travel + dining
see also https://tanbintpy.wordpress.com/2016/10/09/reduce-monthly-spend-from-5k-to-4k/