What were the biggest personal expense categories?

The biggest personal expenses included 'buying stuff' ($28,955), covering tech, books, clothes, and a car for his mother, followed by services and outsourcing ($15,280), including laundry, cleaning, and personal training.

How much did the YouTuber's business spend in 2021?

The total business expenses for 2021 were $1,513,314, averaging $126,110 per month. This encompassed salaries, contractors, course running costs, workspace, equipment, and taxes.

What was the largest business expense?

Salaries and wages were the largest business expense, totaling $501,987 for the year. This figure is expected to rise significantly with the expansion of the team to 17 members.

How much was spent on subscriptions and software for the business?

The business spent $49,755 on subscriptions and software in 2021. This included costs for hiring tools, email marketing, video conferencing, SEO tools, and creative software.

Why are the personal expenses estimations while business expenses are exact?

The speaker estimated personal expenses due to a lack of detailed personal budgeting. Business expenses are exact because the company utilizes accountants and bookkeepers for precise financial tracking.

What is the YouTuber's philosophy on spending money?

The YouTuber believes in strategically using money to buy happiness, such as outsourcing disliked tasks like laundry. He also views investments in knowledge (books) and personal development (coaching) as high ROI.

How much was spent on coaching for the business?

The business spent $74,644 on various types of coaching, including business, finance, operations, and leadership. The speaker considers this a valuable investment with astronomical ROI and plans to increase it.

Key Moments

How Much Money I Spend as a YouTuber (2021)

Ali Abdaal

Education3 min read22 min video

Dec 24, 2021|310,315 views|11,185|683

Ali Abdaal Ali abdal how much money I REALISTICALLY spend in a week what i spend in a week what i spent in a week how to make money online how much i spend in a week what i spend how much i spend what i spent budget budgeting

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Key Moments

TL;DR

YouTuber Ali Abdaal details his 2021 personal ($89k) and business ($1.5M) expenses.

Key Insights

Personal expenses totaled $89,462, with rent/mortgage, food, and 'stuff' being major components.

A significant portion of personal spending went towards food (takeaway/dining out) and tech purchases.

Business expenses reached $1,513,314, heavily influenced by salaries, course-related costs, and workspace.

Salaries for a growing team were the largest business expense, projected to increase significantly.

Investments in coaching and outsourcing services were prioritized for quality of life and business growth.

Taxes and fees, excluding corporation tax, constituted nearly $200k of business expenses.

INTRODUCTION AND PERSONAL EXPENSES OVERVIEW

Ali Abdaal presents a detailed breakdown of his 2021 annual expenses, covering both personal and business aspects. This transparency aims to provide insight into the financial realities behind content creation, complementing a previous video on earnings. Personal expenses amounted to $89,462, averaging $7,455 per month, a figure he found surprisingly manageable. The summary covers seven broad categories of personal spending, starting with housing and food.

HOUSING AND FOOD COSTS

Housing expenses included approximately $3,650/month for rent in London and a $1,200/month mortgage on a jointly owned property in Cambridge, with about $266/month for ground rent/maintenance and $531/month for interest. This totaled $4,160/month or $49,920 annually. Food spending was notably high, with around $40/day ($1,200/month or $14,400/year) on takeaways and $320/month ($3,840/year) on restaurants, contrasted by a low grocery bill of $840/year.

PURCHASES AND CONSUMABLES

Spending on 'stuff' included significant tech purchases like a $4,600 gaming PC, a $130 massage gun, and smart bulbs, totaling $5,130 annually. Books and audiobooks represented a substantial investment due to their perceived high ROI, with $135/month on Kindle books and additional audiobook purchases, equating to $1,620/year for books alone. Clothing expenses averaged $2,800/year, often involving replacements for essentials like underwear and socks. Personal care, including supplements and skincare, amounted to $1,158/year.

HOMEWARE, SUBSCRIPTIONS, AND SERVICES

Homeware costs were around $2,000/year, including a $700 vacuum cleaner and $800 for linens. A notable one-off expense was buying a car for his mother for $32,000. Subscriptions and apps totaled $1,180/year for personal use, including dating apps and services like Audible and Amazon Prime. Services and outsourcing were prioritized for convenience, costing $2,400/year for laundry and $5,280/year for a personal trainer, alongside $408 for a cleaner in Cambridge.

BUSINESS EXPENSES: SALARIES, CONTRACTORS, AND CONTENT PRODUCTION

Business expenses reached a staggering $1,513,314 for the year, with salaries being the largest component at $501,987. This figure is expected to rise significantly due to team expansion from 4 to 17 members throughout the year. Contractors and freelancers cost $150,626, and consultants, primarily for YouTube analytics, added $35,566. Running the 'Part-Time YouTuber Academy' course incurred costs of $119,788, including affiliate payouts and support staff.

OPERATIONAL COSTS AND STRATEGIC INVESTMENTS

Workspace costs, including a new studio at $14,600/month and a previous WeWork subscription, totaled $65,877. Business food expenses were $12,000/year for team gatherings and meetings. Equipment and supplies, impacted by a $25,000 gear theft from a Tesla, amounted to $69,980 on tech, plus $50,272 on general office expenses which require further scrutiny. Software and subscriptions aggregated to $49,755 monthly, featuring significant spending on hiring, email marketing, and video tools.

COACHING, TRAVEL, AND TAX LIABILITIES

Strategic investments in coaching reached $74,644 for business, finance, and leadership development, a sum Abdaal considers a worthwhile investment. Business travel cost $18,540, largely for a trip to Monaco for a podcast recording. Taxes and fees, excluding corporation tax (which is anticipated to be substantial), amounted to $195,941, covering PayPal fees, employer taxes, and VAT. Abdaal emphasizes the goal of maintaining profitability to sustain these operations and growth.

Mentioned in This Episode

●Supplements

●Products

●Software & Apps

●Companies

●Organizations

●Books

●People Referenced

YouTuber Expense Breakdown: 2021

Practical takeaways from this episode

Do This

Translate all expenses to a common currency (e.g., USD) for broader understanding.

Distinguish between personal and business expenses clearly.

Consider outsourcing tasks you dislike (like laundry) if you can afford it, to improve quality of life.

Invest in books and audiobooks for high ROI due to compiled knowledge.

Prioritize health and fitness with a personal trainer if it increases motivation and adherence.

Use business expenses strategically for growth (e.g., coaching, workspace, equipment).

Seek professional accounting advice for tax and financial matters.

Avoid This

Do not count mortgage principal payments as expenses as they build equity.

Avoid unnecessarily expensive tech purchases that are not utilized (e.g., high-end gaming PC).

Be mindful of excessive spending on takeaway and dining out.

Do not overlook significant business expenses like salaries, contractors, and software subscriptions.

Be cautious with unexplained general office expenses.

Ensure business revenue matches or exceeds increasing operational costs.

Common Questions

The YouTuber's total personal expenses for 2021 amounted to $89,462, averaging $7,455 per month. This covered categories like rent, food, purchases, subscriptions, services, and bills.

Topics

Entrepreneurship Mindset & Self-Improvement Business & Entrepreneurship Money & Investing Cost Analysis Personal Finance Investment Strategies Business Expenses Youtuber Income

Mentioned in this video

toolHinge

A dating app for which the speaker had a premium subscription costing $234.

toolConvertKit

An email marketing software app used by the business, costing $6,411 annually.

productAmazon Prime

A subscription service costing $104 annually.

companyWeWork

A co-working space subscription the speaker used while living in Cambridge.

toolWorld of Warcraft

A video game the speaker purchased a gaming PC for, but ultimately did not use much.

productPhilips Hue

A brand of smart light bulbs that the speaker purchased for their flats.

toolAudible

An audiobook subscription service that the speaker finds incredibly valuable and considers essential.

companyDyson

A brand of home appliances, the speaker purchased a Dyson cordless vacuum for $700.

companyPhilips

A brand of kitchen appliances; the speaker bought a Philips airfryer for $200.

softwareBumble

A dating app where the speaker previously purchased a lifetime subscription.

softwareTinder

A dating app with a Gold subscription that the speaker used, costing $20/month.

toolWaking Up

A meditation app by Sam Harris, costing $100/year.

toolTesla

An electric car brand that the speaker owns, noting its lack of maintenance requirements and that it was broken into, resulting in $25,000 worth of gear being stolen.

bookPart-Time YouTuber Academy

The business's primary source of revenue, driving over 50% of business income.

toolApple

A technology company whose products, including Macbooks, are purchased for the business team.

toolZoom

A video conferencing platform with a premium account used for running large events, costing $4,727 annually.

softwareGrain

A service used to record and transcribe Zoom calls, costing $1,584 annually.