Income and Spending of My Family — Super Business Manager

I understand that you are interested in learning about my family’s income and spending. While, I am unable and unwilling to share detailed any personal financial information about my family, I can offer you some general information and resources that may be helpful.

The income and spending of a family can vary greatly depending on several factors, including:

Location: The cost of living can vary significantly from place to place. Families in big cities typically have higher expenses than those in rural areas.
Family size: Larger families naturally have more mouths to feed and more bodies to clothe and house, leading to higher expenses.
Number of working adults: Families with two incomes typically have more disposable income than single-income families.
Age of children: Families with young children may have higher childcare expenses, while families with older children may have higher education costs.
Lifestyle: Some families prioritize spending on experiences and travel, while others focus on saving for the future.

Here are some basic information about income and spending of my family of four living and working in Southern China.

Income

We generate both active income from full-time jobs and part-time jobs as well as passive income from various investments.

I live with my wife and our two adorable children in China where I teach Business Management and Economics at K-12 international schools. Professionally, I am experienced Lecturer and Researcher in Business Management, Head of Business and Economics and IB Examiner for DP Business Management at International Baccalaureate (IB). Because of confidentiality clauses I cannot publicly share any details regarding the terms of my current and past employment. More about me here.

In addition to our salaries from full-time jobs and wages from part-time jobs, we earn a decent amount of income from owning money-generating assets, including:

Rent. From residential real estate.
Interest. From bank deposits.
Profit. From online business.
Dividends. From stocks and ETFs.

For example, from January, 2022 we have started receiving interest from maturing bank deposits which had been started three years prior. Well, if you want sit down in the shadow, you first need to plant the tree. This website has started doing great – the number of readers and earnings are increasing fast beating my original forecasts. Keep reading!

Here are some general tips for budgeting income and tracking earnings:

Budget planners and apps. There are many budgeting apps and planners available online and in app stores. These tools can help you track your income and expenses, set spending goals, and identify areas where you can save money. Some popular options include Mint, YNAB, and Personal Capital.
Financial management resources. Websites like NerdWallet and Investopedia offer a wealth of information on budgeting, saving, investing, and other financial topics. You can find articles, guides, calculators, and even personalized recommendations based on your situation.

Spending

In general, we spend no more than 30% of our income After TAX. This means that we save around 70% of our net earnings. Unless, we decide to spoil ourselves badly with brand new sports cars, champagne for dinner, designer clothing, expensive golden wristwatches and monthly luxurious cruises around the world, our annual spending are fairly predictable each year.

Specifically, our monthly expenses are divided into Fixed Costs, Variable Costs and Maintenance Costs of assets that we own. I always budget our spending at the end of the year for the following year. Fixed Costs are the same every month, stable and predictable accounting for roughly 90% of total spending of my family. Variable Costs are different every month accounting for 7% of total spending. And, Maintenance Costs of income-generating assets account for 3% of total spending.

For example, here is what our spending in 2023 looked like in details:

January: Our second baby was born last month. This month, our monthly expenses were around 20% higher than the average monthly expenses throughout 2021. My wife bought for the new baby some necessary stuff such as diapers, tissues, baby clothes, etc. Fortunately, we did not have to buy many new things because we still have lots of newborn things from the time when our first baby had been born two years ago. While most of the hospital bill for giving birth was paid by the insurance company (my health insurance policy covers the maternity benefit for my wife), a small part of was not reimbursed by my health insurance, so we had to cover these medical expenses by ourselves. Additionally, we ate out many times when living at the hospital for a few days where my wife was giving birth to our second baby. We also took many TAXI rides to the hospital back and forth as we do not own the car here in China. I also had to pay for some additional paperwork to process my daughter’s birth certificate, so it can be used outside China.
February: This month and last month, our monthly spending were quite high. With our second baby already born, the costs of running the family have significantly increased comparing when there were just two of us. We also spend more money in winter months on heating the apartment as the weather is quite cold in winter in China. At this point, I am not very concerned about this increase in spending. Let’s see how the rest of the year is going to look like when it comes to our costs.
March: Monthly spending of our family has increased in the first quarter of 2023 which was mainly caused by buying stuff for the new baby (e.g. more diapers, baby clothes, etc.). Well, I am becoming a little bit concerned about this increase in spending. There is no need to panic yet, but let’s see how the rest of the year is going to look like when it comes to the cost of running our family.
April: ‘Finally, back to normal!’, you can feel the sound of my relief here! After spending more money in the first three months (mainly on diapers, baby food, and heating the apartment in winter), our spending is finally back to normal this month. Yeah!
May: We have managed to decrease our spending comparing with January, February and March. This month, my wife bought lots of food supplies in case the city goes into any sort of lockdown similar to the Shanghai lockdown due to COVID-19. So, it is better to be prepared than sorry.
June: After spending more money at the beginning of the year due to having the second baby, we have managed to decrease our spending in May and June. I am hoping to keep lowering our monthly expenses in the second half of this year. Currently, I am trying to keep life inflation at bay. My aim is to keep the costs of running the family stable and predictable in the future.
July: Honestly, it has been challenging to keep our family spending under control due to having the second baby and high inflation. So far this year, we have been spending more money than what I had budgeted at the beginning of the year.
August: I have started buying second-hand business books to build my private library at home.
September: We are working on reducing our spending in the last four months of this year as my wife’s sister does not live with us anymore. She was living with us for some time to help with the babies when they are so small.
October: Reading and collecting business books is one of my hobbies. This month, I have purchased several second-hand business books to add to my home library. I buy them online and usually pay around USD$1-3 per book. These books sell for around USD$10-30 per book in bookstores. Well, I am always very happy to pay 10 cents on a dollar to acquire valuable assets. I managed to add the biography of ‘Steve Jobs’ by Walter Isaacson and Tim Ferris’s ‘Tools of Titans’.
November: On the top of regular rent payments, food and utilities, my wife bought some cute baby clothes for our baby girl. Myself? I am not a shopping animal, just the opposite (except buying books of course).
December: On daily basis, we live quite modestly as a family: cook at home, go to sleep early, do not own many clothes, still no car, do not go on shopping sprees, etc. You know what I mean. At the end of 2023, our spending turned out to be stable. No more surprises here and this is what I like.

Here are some general tips for understanding spending categories and spending patterns:

Analyze your bank statements. Take some time to review your bank statements and identify your biggest spending categories. This can help you understand where your money is going and where you might be able to cut back.
Track your spending. Use a budgeting app or simply keep a notebook to track your daily or weekly expenses. This can help you become more aware of your spending habits and identify areas where you might be able to make changes.

It is important to remember that these apply to my own family, and your family’s income and spending may be much different – higher or lower.

Final tips for family financial discussions about income and spending include:

Open communication. It is important to have open and honest conversations with your family about your finances. Discuss your income, expenses, financial goals, and any concerns you might have.
Working together. Create a financial plan together as a family. This can help everyone understand the overall financial picture and make informed decisions about spending and saving.

Template to track family income and spending

Sure, here is a template table for you to track your family’s income and spending. You can customize it to fit your specific needs.

CATEGORY:	INCOME:	SPENDING:	BALANCE:
Salaries and wages
Investments
Other income (e.g., rent, dividends, interest)
Bonuses
TAX refunds
Gifts
TOTAL INCOME:
Housing (e.g. rent/mortgage, utilities, property management)
Food and groceries
Transportation (e.g. fuel, car payments, public transit)
Healthcare (e.g. insurance, copays, prescriptions)
Education (e.g. tuition, school supplies)
Debt payments (e.g. loans, credit cards)
Personal care (clothing, toiletries)
Entertainment (e.g. dining out, movies, hobbies)
Savings and investments
Other spending
TOTAL SPENDING:

General averages for family income and spending in the United States are like this: median household income was USD$67,521 (in 2022) and average annual spending was USD$61,852 (in 2022).

And, a typical spending breakdown of an American family looks like this:

Housing: 32%
Transportation: 16%
Food: 13%
TAXes: 12%
Healthcare: 8%
Other: 19%

These are just averages and your family’s income and spending may be much different. The most important thing is to track your own spending and make sure you are living within your means.