Calculate your real monthly burn

Burn rate is what you spend per month. Sounds easy. Most people miss by 20, 30, 40% because they estimate instead of measure.

Here's how to get the real number.

This is not financial advice. This is how to track actual spending so you can hit a real quit target.

Why guessing fails

People think: Rent $2,000, food $400, car $500, total $3,500/month.

Then they check the statements and see $4,600. Where did $1,100 go?

Subscriptions they forgot about. Spontaneous purchases. Car repairs. Gifts. The recurring Amazon order. Insurance premiums you only think about once a year. Restaurant dinners that stacked up. Medical copays. Dentist visit. Travel. Home fixes.

You can't estimate what you're not paying attention to. Estimation breaks every time.

Use bank statements

Pull three months of transactions. Checking and credit cards. Three, not one. One month is a fluke. Three months is a pattern.

Spreadsheet it. Add every transaction. Food, utilities, insurance, subscriptions, gas, parking tickets, the stuff you didn't need but bought anyway. Everything.

Divide total by three. That's your real monthly burn.

It works because it's what actually happened, not what you think happened.

Break it down by category

Once you have the three-month total, slice it into categories. You'll see where the leak is and what to cut when you quit.

The hidden line items

These are the categories people blank on that often total $500–$1,500/month:

• Forgotten subscriptions: Scan statements for recurring charges. $10/month streaming you never watch is $120/year. Most people have 5–10 dead subs.
• Online impulse buying: Search your email for Amazon, clothing, electronics confirmations. Adds up to $200–$500/month for people not tracking.
• Parking and tolls: If you drive, this is $50–$300/month. Search your statements for "PARK" and "TOLL".
• Medical and dental: Checkups, vision, unexpected copays, prescriptions. Budget $100–$200/month as a floor.
• Home repairs: Water heater, roof work, plumbing. Costs $1,500–$2,500 when it hits. Amortize: $125–$200/month.
• Pet costs: Vet, food, grooming, boarding. Expect $100–$300/month with a pet.
• Gifts and holidays: Birthdays, holidays, weddings. Budget $1,500–$3,000/year minimum. That's $125–$250/month.
• Car maintenance: Oil changes, tires, repairs, registration. Average car owner spends $900–$2,000/year. That's $75–$167/month.
• Clothing: Four items/month at $40 each is $160/month. People usually forget this line item.
• Coffee, wine, dining: Daily coffee at $6 × 30 = $180/month. Weekly restaurant dinner at $60 × 4 weeks = $240/month. Add them.

Run your own math. Most people find $400–$1,200/month in invisible expenses they didn't account for.

Burn rate moves over time

After you quit, your burn will shift. Commute goes away. Workplace lunches gone. Work clothes stop costing. Maybe freelancing requires new software or equipment. Some stuff stays the same.

Use your current three-month average as baseline. But if your quit date is 18+ months away, plan for 3–4% annual inflation. $5,000/month burn today might be $5,200/month in a year.

Bake that into your quit number. Don't assume today's burn stays frozen.

Recalculate quarterly after you quit

After three months of no income, pull the statements again. What dropped? What went up? New recurring expenses?

Recalculate. If burn is lower, you stretch your runway. If it's higher, tighten or find income faster.