This is the Captain speaking with my feathery companion Norry to discuss finance!
Last month, I highlighted my current income and took a look at my July 2015 budget. Now let’s see how I did!
-Bit of red you got there, Captain.
Agreed Norry, a lot more red than I like. I majorly went over budget in food which means I didn’t get to save as much as I wanted.
– Looks like you didn’t pay your phone bill either!
Yep, turns out I’ve been paying my bill a month earlier than I needed. I’ve set up the auto-pay feature now and am just not going to worry about it.
I’ve restructured my budget sheet so it would be better organized and easier to read by separating my expected spending into buckets.
Fixed: Anything with a set-in stone due date or was needed for survival. Groceries, housing, utilities, phone bill, as well as my donations and patreon are under this bucket.
Invest: Stocks, bonds, funds, and long-term savings (such as house savings) go in this bucket.
Fun: Partying, drinking, eating out, going to the movies, vacations, ect. all falls in this bucket.
After that, everything not spent goes into my general savings bucket for short-term needs.
-I thought you were supposed to do savings first, not last.
In general, yes Norry, you are correct. In my case, I’m attempting to use my savings as a carrot on a stick. With this structure, I know that the only way to save a lot is to slow down on eating out and doing other random things. Since I have a strong desire to save, this should help me a lot!
I also automated a lot of my expenses so I don’t have to worry about them! All items with the green highlight are taken care of without me having to lift a finger. Technology is helpful sometimes.
But all this is looking into the past. It’s time to take a look at next month’s budget plan:
As you can see, I’ve added some padding to my eating out and grocery buckets, but their total is still less than I spent last month. I’m still trying to cut spending in those categories but I’m giving myself a little more breathing room to do so.
I’ve also decided to work on funding my Roth IRA. The yearly max is $5,500, divide by 12 months and voila! $460.00 to my Roth account each month!
-I also see you are going to Disneyland and aren’t taking me!
I am going to Disneyland! My parents are taking my brother and I there as my 28th birthday present! I’m looking forward to a fun family vacation and knocking another item off my treasure map! Disney can be EXTREMELY expensive and I don’t want to be a burden on my parents so I am paying for my own plane ticket there and going to cover a few of the family meals. The plane ticket has been paid for already from savings, so for souvenirs and other randomness I’ve set up a large budget of 500 doubloons for the trip.
It certainly feels that way! I should be able to cover all the expenses I have while still growing my savings but it won’t be near as much as I want it to be. If I can be better about cooking at home instead of eating out, if I’m careful about random spending, and if I spend less while on vacation though, my savings should grow even better!
That’s all I have for now, next post will be on how my Net Worth fared for the month of July.
Until next time, avast ye scoundrels!
Photo Credit: (c) Anna Chelnokova Dreamstime Stock Photos