I needed to know why, exactly, these expenses are so large. So I broke our entire budget down to figure out the biggest factors.
- There’s the high cost of living in our area. - The fact that we hire help for childcare. - The cost of preschool for our children.
With six digits worth of expenses every year, how am I able to do this and still have a good amount to put towards investments? The answer couldn’t be more simple. My income exceeds my expenses. This is a direct result of my multiple streams of income.
These are some of the things that play a part in my personal journey to being financially independent – even while spending more than $200k a year.
- I have additional sources of income, preferably passive income sources. - I could downsize my house and move a little bit out of the area if needed. - I’ve been very aggressive about putting my money to work, even early on in my short career.