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 August 2015 budget. Now let’s see how I did!
-Not too shabby Cap’n…but what happened to your Roth IRA savings?
Well, I decided to move up my house buying plans, been looking at places the last couple weeks actually, and I figured the best thing to do would be to put my Roth on hold again. Houses are expensive! Plus I have practically no furniture so I will need to have a decent chunk of cash to be able to furnish whatever place I find.
-Fair, but you are also over budget in Restaurants…again. If you really want cash, you should try to stick to your budget!
I know, I know. This month had a couple big nights out that required more than my usual $10 trip to McDonalds. I didn’t go to the grocery store at all so I didn’t lose any savings potential by eating out, but I REALLY need to work on that this month.
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 knocked down my eating out bucket and my “other” bucket. Goal is to get them both down to $200 each for plenty of play money while still saving a good chunk.
-If you are saving for a house, why put anything in general savings?
It’s good to have a cushion for unexpected expenses and plus I have lots of other little goals I’m saving up for! My general savings is where money for plane tickets to go home and big once a year expenses come from.
-Humans are so complicated.
That’s all I have for now, next post will be on how my Net Worth fared for the month of August.
Until next time, avast ye scoundrels!
Photo Credit: (c) Anna Chelnokova Dreamstime Stock Photos