Your expenses are more than you think
If you aren't an avid budget follower, your expenses are more than you think. Our simple test is taking your gross income, subtracting taxes and savings, then what is left over is your lifestyle or expense number. Often we under estimate this number because we think about our monthly expenses, but for get about the once a year expenses such as increased spending during the holidays. Even that thought of annual expenses often under estimate how many one time expenses pop up, this year it was the furnace, next year its the car, etc.