190 | The Spending Tracking Spectrum: Level 3

We’ll call this the “Rudy Level” because we’ve moved from watching from the sidelines to playing the game.

There's a chance you might need some "walk-on" energy to make the leap to this level too.

This is the first level with groups, but it's only three - enough to help us acknowledge what we can and can’t control without torpedoing our efforts.

The outcome will be something like…

I spent $6,500 this month – $1,500 was income dependent, $2,800 was less discretionary, and $2,200 was more discretionary.

The first group is spending that increases when you make more money.

For us, these are taxes, giving, and professional fees.

You don't need to beat yourself up when you make more money, you're more generous, or you invest in your career.

The second group is spending that's fairly set in stone or would be painful to change in a big way.

For us, these are medical, some home costs (mortgage, property taxes, and home insurance), utilities, and car.

A handful of decisions in these groups tend to cement lifestyle expectations. And another handful are just a result of how the cookie crumbles.

The third group is spending that is the simplest to change and where most of the color of life resides.

For us, these are all the other home costs, food, kids, gifts, fun, and travel.

Often, these are small, but common purchases. And they tend to differ the most from year to year as preferences and seasons of life change.

At this level, we're more focused than Level 1 and 2 without the effort of Level 4 and 5 - a fine place to land if you’re trying to make sense of ballooning spending.