The way to interpret this is this: Every. Source: Statscan.gc.ca Average household expenditure Canada What Do I Do With This Information? So if you spent $365 last year on clothes, then your average clothing spending rate is $1.Ĭanadian Daily Money Burn Rate Create column charts It’s an amount that gets spent on a yearly basis averaged out over 365 days. Just like a business your life has a daily burn or daily spending rate. Lets Take the Burn Rate and Apply it on a Personal Level It costs money to run the business every day for things like wages, electricity, keeping the place running, rent and so on. This is the rate that a company burns money on a daily (or monthly) basis. When you have a new business they have this concept called a “burn rate”. “I have a theory on this…” The Daily Spending Rate “Come with me into my warped financial mind.” I joked. I never think about those costs the way you do.” he admitted. “So, you have always just looked at it as the day the bill comes out, that’s when it costs you?” I asked. Tomorrow is the electricity bill, so that amount comes out. I always looked at it like… today the cable bill gets paid, so today cost me $100 for cable. “Oh…” he relented, “I hadn’t looked at it that way. But you are burning through money at every moment of every day.” “All these things you pay once a year, but they are costing you every day. *Seeing that he was still listening I continued on.* There’s the property taxes, house insurance, car insurance to name a few.” Your car loan, and any other loan like your student loans, could be looked at the same way. Your house has a mortgage, so you are always on the hook for the interest which accumulates everyday. “Well, let’s see, at this moment, you are running appliances in your house, even though we are out. Everything… Literally Everything Costs Money Those costs that are happening every moment of every day. But I’m thinking more of your fixed costs. “Well,” I said, wondering when our entrees would come, as I began to worry my stomach growls would overtake the conversation. “What about if I’m sitting on the ground outside, not doing anything?” But…” I could see he was going to try and convince me that my way of thinking is ludicrous. “Sure it does,” I said, “you have your cable bill, your heat, and electricity, just to name a few.” “When I’m sitting at home watching TV, that doesn’t cost me anything!” “That’s absurd!” my friend retorted, clearly not sharing my dollars and cents view on the world. “Depending on how you look at it, you’re burning money every second of every day, ” I said. “Well… not EVERYTHING costs money.” my friend replied. I had been playing with the idea of a personal daily spending rate and really wanted some insight.Īs we waited for our entrees, I not so casually mentioned that everything we do costs money. But economists expect the rising expense of new leases to send the government’s inflation measure higher in coming months.I was sitting at dinner a few weeks back with some friends and we got to talking about money. Rents as measured by the government’s inflation index have risen more slowly because they include all rents, including existing leases. The average cost of new leases has jumped 14% in the past year, according to real estate brokerage Redfin, to an average of $2,016 a month. Yet plenty of items are still rising in price, notably apartment rents. Wholesale gas prices have fallen to about $3.40 a gallon, which suggests that retail prices could drop to as low as $4.20 by August, according to Omair Sharif, founder of Inflation Insights.Īnd wholesale used car prices are also falling, which point to declining used car prices in the coming months. With fewer ships stuck at the Port of Los Angeles and Long Beach, America’s largest, shipping costs for international freight have fallen. And other commodities, including metals such as copper, have also become less expensive, mostly because of recession fears in both the United States and Europe. Oil prices fell Tuesday to about $96 a barrel. Though inflation is likely to slow later this year, it’s not clear by how much. Yet steadily robust job growth points to an economy that is still expanding, with little sign of an imminent recession. Consumers have started to pull back on spending, home sales are falling as mortgage rates rise and factory output slipped in May.
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