Browsing posts in: Budget

Ashley’s New 2017 Budget

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It’s been awhile since I did a full budget post. As I was working on this post, I was reminded of the reason – these posts always take sooooo long to pull together. I double and triple check everything 10 times to make sure there are no mistakes and to make sure I have solid footing on where all of these numbers are coming from.

These are good posts for me to do, though, because it always offers an opportunity for us to make subtle tweaks or changes to the budget. This time around, the big one was with our Roth IRA savings. We’ve only been saving about $100/month toward a Roth. But one of our 2017 goals is to fully fund a Roth at $5500 this year. In order to do that, we’re going to have to increase our monthly rate of savings for our Roth!!

At any rate, I want to show our budget and then offer some explanation below:

MONTHLY BILLS & EXPENSES
Mortgage $1250
Property Taxes & Insurance $350
HOA $40
Electricity $165
Water $75
Phones $150
Cable/Internet $130
Preschool & Childcare $1100
Gift-Giving $50
Personal Maintenance $50
Restaurants $300
Entertainment $100
Kids’ Activities $100
Groceries $600
Fuel $100
Household Goods $100
Clothing $50
Category subtotal $4710
SAVINGS
3-6 month expenses, Full at $5,000 $0/mo ($5,000 current)
Car Repairs, Full at $2,000 $200/mo; ($676 current)
Kids’ birthday, Full at $500 $50/mo; ($150 current)
Travel/Christmas; Full at $500 $50/mo; ($50 current)
Annual Fees $240/mo (revolving)
Girls’ College Savings $50/mo
Roth IRA Savings $460/mo
Home Improvement $350/mo
Summer Vacation Savings $500/mo
Category subtotal $1900/mo
DEBT
Student Loan Payments $2200/mo
Medical $25/mo
Balance Transfer $800/mo
Category subtotal $3,025/mo

 

TOTAL = $9635/month

 

The biggest “note” right off the bat is this: I do NOT make $9635 “take home” per month. I don’t make that much. So that’s a problem. But here’s the deal – we’ll make it work.
At least for the time being, hubs is still drawing a little bit of additional income, so that helps to supplement my income. But as the year progresses, assuming our income will go down at some point, we’ll end up having to cut back. Likely the cut-backs will occur in both the savings and the debt categories. Some of the savings categories are easy to cut (e.g., travel/Christmas or kids’ birthdays); some of the savings are short-term and will go away eventually (e.g., summer vacation savings). But some will be harder to cut out (e.g., girls’ college savings is set to draft automatically from my account and if we want to hit our fully funded Roth IRA goal, we need to be pretty consistent in that savings category). I hate to cut back on debt at all, too, but if faced with a lack of funds at the end of the month, we may have to dip below my projected number. To be fair, our 2017 goal is to pay $30,000 toward debt, which is “only” $2500/month, so we’ve got a bit of wiggle room if we need to make a slightly lower debt payment (though I’d LOVE to pay MORE toward debt and hit our goals early!!!)

In terms of the monthly bills and expenses, most of those are pretty “set” at this point. We did our 100% bare-bones blog days (a full 2 years) and have just started loosening up the purse strings a bit for the sake of our sanity and longevity with our get-out-of-debt plans. We may try to make our “entertainment” budget cheaper (which accounts for our monthly date nights and any family activities we do), and I’m always struggling to try to spend less on food (either/both in groceries & in eating out). I could skip or reduce the personal maintenance budget occasionally (which accounts for things like yoga/exercise stuff, eyebrow wax, hair care, makeup, etc). But for the most part, the monthly bills are going to be hard to see much wiggle room in at this point.

So all of this brings us to this point…. It’s kind of scary to see a budget that our projected income cannot cover. To accommodate for this, all savings and debt payments will be made late in the month. That way, we can alter payments (and savings) as needed so that our budget isn’t exceeding our monthly income.

There you have it! January debt update coming soon, too!

 

If you keep a budget, what are your proportions of monthly expenses, savings, and debt? Ours are 48% monthly expenses, 20% savings, 32% debt. Of course, that’s just the budgeted categories and things are subject to change as income decreases. But as budgeted, I think that’s pretty good! I’d be proud to pull those numbers! What are your numbers?


Financial Goals: 2017 & Beyond!!!

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For the past couple of years I’ve made our family’s financial goals public, sharing them with you all and tracking along throughout the year to see how we did (see 2015 goals here and 2016 goals here). We met our financial goals the past two years and hope this year will be no different.

2017 Financial Goals:

  • Pay $30,000 Toward Debt. This may seem like no big deal since we had this same goal last year and met it, no problem. But this year will be different because our salary is going to decrease a bit. Hubs is going back to school and mid-way through the year I’ll be leaving my part-time job. I’ve kept hinting that I have some news on the job front but I’m still not in a place where I’m able to share it. Probably within the next few weeks I’ll be able to elaborate on this. Overall, though, our salary will be down this year compared to last year.
  • Fully Fund A Roth IRA. Our first two years of debt payment were narrowly focused on debt payoff at the exclusion of all else. When I started my full-time job in August 2015, a 7% retirement contribution was required (and is matched by my employer). In the past year (we’re almost at the 3-year mark for our debt payoff journey), I’ve tried to add in a little extra balance. That means more of a focus on savings for retirement and on spending a little bit for fun (e.g., monthly date nights, kids’ activities, etc.). I’m still continuing to do my mandatory pre-tax retirement contributions (it goes into a 401(k) type thing, but the education equivalent…I think it’s a 401(c) or something??) I’ve also tried to separately put a little money into a Roth the past couple years, but we’ve only managed to do about $1,500 or $2,000ish each year. This year the goal is for us to have 1 fully funded Roth at the maximum allowance (I believe it’s still $5,500). In the future we’ll work toward having 2 fully funded Roths, but I think just having 1 will be a good goal for this year, as we still work diligently to reduce our debt.
  • Mom & Dad Getaway. This is still a very new and not fully fleshed out goal but one that has been floating around in my mind for quite awhile. For newer readers, hubs and I have twin 4.5 year old girls. One of our favorite (pre-baby) passions was to travel. We used to travel a LOT. In fact, that’s one of the reasons we have in our mind for why we want to be debt free: so we can have the freedom to travel! In February 2015 we set a goal to go on a cruise for my Mom’s 60th birthday and we did! We saved up for over a year and in April 2016, we went on a family cruise. It was a lot of fun and I’m glad we did it. But it kind of re-kindled this flame in my heart – this desire to travel with my husband! In the past nearly half-decade since we’ve had kids, we haven’t had a single overnight away from them. Not one. We love our kids, but I also think we’re now at the point that it would be healthy and good for us to have a little mini-getaway solo. It likely wouldn’t be for long (we’re thinking 4 days/3 nights) and it likely wouldn’t be extravagant (maybe drive out to San Diego since that’s only a few hours drive). So I’m sure it won’t be as costly as the cruise was. We don’t have defined or “set” plans in place, but we’ve talked to hubs’ mom about it and she’s volunteered to come out to Arizona and watch the girls for us so we wouldn’t have to be paying for childcare. I don’t know when this would be (maybe over summer; maybe not until fall), but it will happen sometime in 2017. It needs some work to make the goal more defined, but it’s a definitely goal we have for this year.

 

I know this is a get-out-of-debt blog, so some of the things I talk about (e.g., savings, spending) may be a little controversial. I am proud, overall, on how frugal we have been and how much we’ve been able to reduce our debt. I think ours is a success story. If we had less debt, we may have just been able to go gung-ho the whole time (we did for a solid 2 years!!!) and just eliminate the debt in its entirety. But with the amount of debt we’re grappling with, I didn’t think it was possible for us to be “gung ho” for a solid 5-6 years. I knew we would end up falling off the wagon. Therefore, we’ve purposely built our budget in a way where we can SUCCEED. That includes building in a little “wiggle room” for a monthly date night, weekly dance class for the kids, and having friends over for dinner every couple of months. These “life” things are important to us and we wouldn’t be able to make it through to the finish line if we didn’t allow them.

It’s been so encouraging to watch our debt shrink. We now owe $75,000 according to our most recent debt update. Here are our long-term goals:

2017: $30,000 toward debt payments

2018: $30,000 toward debt payments

2019: DEBT-FREE by the middle of the year!!!!

2019 still seems so far off! But then, we started this journey in 2014 and that feels like it was just yesterday! So I know 2019 will be here before we know it. We’re over half-way there!!! I hope you’ll continue to stick around while we’re on our journey. And I wish you luck on your journey as well.

 

What are your 2017 financial goals? Do you set annual goals for yourself and/or your family?


2017 Planning

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Hi friends! How is 2017 treating you so far? So far, so good over here! Just trying to balance work and childcare (always!!) The kids have been out of school all last week (they go back to preschool this coming Monday) so I’ve been drowning in work-related tasks while I’ve been trying to juggle childcare with hubs. Yikes!

Speaking of hubs – a quick work-related update:

Remember when we spoke about hubs going back to school full-time and closing the doors to his business?? Well, slight change of plans…

He IS going back. He’s starting with 9 credit hours; his classes meet on Mondays and Wednesdays. That leaves him with quite a bit of spare time still on his hands (though, to be fair, his classes are basically ALL.DAY on M/W, so he’ll need to spend quite a bit of time on the other weekdays actually studying, doing homework, etc.).

Anywho, hubs landed a really big contract around October-ish that was supposed to be completed by the end of 2016. For newer readers, hubs is a wood floor contractor & installer. Unfortunately, the contract was for a big “new build” condo complex and anyone who is familiar with new build knows that they are rife with setbacks and delays. The same was true here. Floors are one of the last things to go into a new home, so hubs’ schedule kept getting pushed back more and more and more while other contractors were working on their parts of the project.

I think you can see where this is going.

The project was not complete by the end of 2016. Not even close. In fact, hubs had only just barely begun! (again – this was due to no fault of his own – this is just how new builds sometimes go).

At this point in time, hubs has a two-man crew still working for him. Rather than renege on the contract he had signed, he’s having his crew continue working for him on this big project. He’ll be able to check in on days he’s not in class to make sure all is running smoothly and according to schedule, but it shouldn’t be a big time commitment for him since the work is actually being completed by his crew.

After paying salaries, he obviously wont’ be making as much as if he were doing the work himself (which was the initial plan when we thought it would be done by the end of 2016), but he’ll still be making a nice little chunk on the side which will help add a bit of a buffer as we transition into the land of no-more-work. I think this is a great thing, though. It will be nice to have a month or two of additional side-income (from hubs’ business) before we transition into me being the sole earner in the household.

Speaking of, I’ve been running numbers over and over again trying to make our 2017 budget “work.” I think it’s just going to require a bit of flexibility because right now with our debt-payment goals and everything else….if I were the sole earner it just wouldn’t work. I wouldn’t be making enough to cover our budgeted items.

To be fair, this is with a budget that is dolling out $3,000/month for debt payments, alone. It may be that some months we are unable to make such a large debt payment. As I’ve alluded to, I also have some employment changes in the future, too, so there are lots of balls up in the air and lots of considerations at hand.

I currently have a few blog post drafts going (one with a 2017 budget and one with 2017 financial goals). I’ll do my best to try to get one of those posts up this coming week. I’m just counting down the days/minutes until we have regular childcare again! Whew! Especially now with the girls being older (4.5 years) and not napping – there is not a single break during the day in which I can get real work done. I do a good job of attending to emails, etc. but anything other than the basic necessities is pretty tough to squeeze in! Yikes! Any work-from-home parents out there?? How do you do it!?!? The kids each have little workbooks so I’ve tried to have “work time” for all of us (like, we’ll all sit down to do “work” together), but the interruptions are constant and, while that’s okay when I’m just doing emails, it makes it challenging to do any serious work that requires extended concentration, etc. I’d love any tips (though, hopefully this problem will dissolve once preschool is back in session!)

Have a lovely weekend!!


Teacher Christmas Gifts

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Hi all!

I hope you’re having a happy Thursday! The girls and I are headed to Texas on Christmas Day. We are flying (on Christmas because its much cheaper) instead of driving because hubs has to stay back and work. He’s still planning to quit and go back to school in the Spring (he’s all registered and ready to go), but he has a couple big jobs in the meantime that need to be wrapped up by the first of the year. It’s great, too, because it will give him a final big payday before that source of income dries up. I need to write a post on our 2017 budget soon, because it will be looking pretty different given all of the major income/outflow changes coming soon (e.g., hubs quitting work, some job changes with me in the works, etc.).

This is my first time to ever fly alone with the girls (we haven’t flown with them at all since they were 4 months old – we flew back for a wedding I was in). In general, I think traveling is much easier with young children versus infants, but I’m still a little nervous. Send your best tips and happy travel prayers my way (I’m planning to pack backpacks for the girls with things to keep them occupied, etc.)

In the meantime, today is the girls’ last day of preschool. They have their class party and gift exchange with the classmates (everyone was instructed to wrap a book to exchange). I also wanted to share our teacher gifts this year!

For the gift, itself, we took the easy-way-out by getting a gift package thing from Costco. Our store was selling two-packs of Starbucks gift sets for $20 each ($10 per gift). I got the green paper bags from our local Walmart for 33 cents each (it was 3 for $1). The rest of the gift bag items (craft stuff, construction paper, glue, and tissue paper) was stuff we already had on-hand.

I drew a Christmas tree shape on construction paper and let the girls cut it out themselves (we actually did a ton of Christmas trees so we could also put some in cards to family members – I think we did 10 total?)

After cutting out the trees, the girls decorated them using craft materials we already had on-hand. I then glued them in place on the green bags (and wished I’d bought red bags instead) and outlined them with thick black sharpie. Put the Starbucks gift set inside, stuffed tissue paper around it, and called it a day!

 

Teacher gifts for about $10 a piece, complete with a personalized custom-made kid craft : )

IMG_4542This was actually a little more expensive than our typical teacher Christmas gift. In past years we’ve done $5 gift cards, a kid-drawn picture, and Christmas card (as an example, see here). Even so, I was happy with the price-point. We still stuck within our budget and bought a thrifty gift that I hope the teachers will enjoy.

What do you do for holiday teacher gifts? What is your Christmas budget typically like for teachers, neighbors, etc?

 



Ashley’s June Budget + 2016 Goals Update

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As a reminder, we have 3 concrete financial goals that we’re working on in 2016:

  • Save $10,000 for a down payment
  • Save $5,000 for an emergency fund
  • Put $30,000 toward debt.

Even amidst some obstacles that have caused us to have to withdraw money from our EF (for expenses related to the death of our beloved dog and a plane ticket home for my Nana’s funeral), we’ve still managed to make some progress for each of our savings goals.

In total we have now saved up: $6,000 for a house down payment, and $2,100 in our emergency fund.  In May we weren’t able to contribute to any savings at all, but in June we were able to save a good chunk and July should be good in this regard (and for debt payments), too.

Originally, we were hoping to start house-hunting in mid-summer but we decided to push our timeframe back just a tad so we can save up more money. We’re now hoping to have both of these savings goals met by August or September, and plan to start the house-hunting process in early September. I’m itching hard on this!

What about the $30,000 debt goal?

After last month’s $3500 debt payment, we’re almost exactly half-way to our overall 2016 goal of paying $30,000 toward debt! In full transparency, it’s going to be tough to hit our goal since we’re still working on stocking our savings accounts, too (we’d hoped to be done with the savings goals by mid-year). Even so, we’re currently on track and making good progress. For reference, here’s the table I made of goal debt-payments compared to actual payments for 2016:

Month 2016 GOALS 2016
January Goal: $3500 $4013
February Goal: $1000 $1261
March Goal:  $1000 $2134
April Goal:  $2000 $1521
May Goal: $2000 $1325
June Goal:  $4000 $3500
July Goal: $4000
August Goal: $2500
September Goal: $2500
October Goal: $2500
November Goal: $2500
December Goal: $2500
Total Goal: $30,000 Actual: $15770.00

 

Currently, we’ve paid $15,770 toward debt out of the total $30,000 we have planned (though it’d be great to beat our goal, too!) Right on track!

And here’s how our household budget looked for June 2016:

 

Place Amount Spent
Rent 1200
Down Payment Savings 2000
Electricity 128
Water 65
Natural gas 36
Cell Phones (2 lines) 105
Cable/Internet 100
Trash 35
Preschool (babysitting) 880
Gift-Giving 9
Restaurants 334
Kids Activities 136
Groceries 505
Gasoline 159
Household Goods 41
Clothing 74
Work Expenses 105
Rainy Day Savings 2023 (minus deductions, see below)
Savings Goals 500
Debt Payments 3500

 

Comments:

Electricity: Our electric bill from June was moderate, but I already received the July bill and it’s shooting sky-high. This is to be expected given that the temperatures are in the one-teens (as in 115 degrees!!!) and the girls have a babysitter at home all summer so we need to keep the A/C running since kids are at the house all day.

Restaurants + Groceries: I feel like you can’t consider one without knowledge of the other. Our overall food spending this month wasn’t too terrible when you consider that these figures include some of the food for the girls’ birthday party, along with the food we had to buy on our multiple trips this month (remember, I went to Austin for a funeral the first week of June + the whole family went to Utah the third week of June. Particularly during the Utah trip, we had to eat out basically the entire time since we were clearing out my Dad’s house and didn’t have the ability to cook).

Babysitting: The only perk about our travels is that we had less childcare. During the regular preschool year we have to pay a set price regardless of whether we travel or not (for instance, we still had to pay the full week of childcare when we were on cruise 2016). But with a babysitter, we don’t have to pay if we aren’t utilizing her services. So our childcare costs were pretty low in June.

Kids’ Activities ($136): I had cancelled swim lessons for about a month while we were busy traveling, but I started back up again in late June. I think I’ll carry it through the duration of summer and in early September I’ll probably cancel again and start them in a new activity. For new readers, swim lessons is the only paid activity we’ve ever done with the girls. But now that they’re 4 years old, I really want to let them start trying some new activities. We have lots in our area to choose from:  dance, soccer, martial arts, gymnastics, music lessons, etc. etc. etc. I’m committed to only having them in a single activity at a time (at least for the time being). They’ve made great progress in swim lessons so far and I’m really proud of how far they’ve come. But I also can’t wait to get to watch them in little tutus or soccer cleats or whatever the “uniform” is for the next activity we decide to do!

Clothing: This includes a mix of clothes for all 4 of us. I got a new cardigan for work, hubs got some new basketball shorts, and I got some darling outfits for the girls from my favorite app, Wish (side note: I’m still loving how cheap and easy it is to order through Wish, but I’ve seriously reduced the frequency of use. I can see how people could get addicted and overspend on crap).

Work Expenses:  This month I had several work-related expenses:  a new ink cartridge for our home printer, reordering checks and address labels, and $30 worth of gift cards for people who helped participate in a huge project I’m working on (that amounts to 3- $10 gift cards). Even though I had to pay for it personally (the department said “no”), I feel like it was warranted because these people have invested a HUGE amount of time into a project I’m spearheading.

Rainy Day Savings: I’d deposited $2023 into my various rainy day funds (though some money was also withdrawn from these accounts.) See below:

  • 3-6 Month EF: $1,000. The goal is to get to $5,000 and we currently have $2100 (note, this is down from my last budget update because we had to use emergency funds to cover my $$$ last-minute flight to Texas for my Nana’s funeral; we also had to withdraw some money for end-of-life expenses for our dog, who died last month. We withdrew money for an ultrasound, lab tests, and his final cremation and disposal. http://www.bloggingawaydebt.com/2015/12/2016-tentative-financial-goals/
  • Car Repairs: $50. I also withdrew $10 to wash it. Our overall account balance is at $113, but I know we need to add more because my breaks have been squeaky and there are a couple routine maintenance issues we need to get done soon. Why are car repairs always so $$$???
  • Birthdays: $523. I also withdrew the full $523 for kid birthday expenses. I lumped some expenses here that would otherwise have gone into different budget categories, but I included them here due to their nature. For instance, both of our moms came to town for the birthday, but we only have one guest bed. So this number includes money for a new air mattress. It also includes all of the food costs associated with the party AND a dinner out when we treated our moms to Italian food while they were in town. In addition to that, this covers the bounce house, a pop-up tent we got to shade the yard, and all kinds of party odds-and-ends (decorations, goody bag treats, piñata & candy, etc.). I’d guesstimated our party costs to be about $600, so I wasn’t too terribly far off.
  • Travel/Christmas: $100. The full account balance for this category is at $150. It always helps when Christmas time rolls around to have some of our travel and gift expenses subsidized a bit!
  • Health/Dental/Vision: $0. Generally, this gets auto-deducted from my paychecks so we can pay for healthcare out of pre-tax money (it sits in a flexible spending account earmarked for health-care related expenses.) However, I pre-pay healthcare expenses in the spring semester to cover the summer (this is normal at my university), so I didn’t add anything to the account this month since its summer time. Instead, I get a higher paycheck since this money isn’t withdrawn. : ) I did have to make a deduction this month, though. I deducted $25 from our FSA to pay for a prescription. Current account balance sits right at $2300.
  • Annual Fees: $300. Deducted $68 for vehicle registration. The total current balance is $482. I like to have it around $500ish, so we’re almost fully funded here.
  • Girls’ College Savings: $50. We save $25/each (x 2 girls) for college that’s automatically transferred monthly to designated 529 accounts.

Savings Goals ($500): This is all money that was saved for our 2016 Roth IRA. As a reminder, I have 10% of my paycheck auto-deposited into pre-tax retirement accounts, but I also like to put a little bit of post-tax money into a Roth each year. It’s never a big priority (especially since I’m already saving 10% of my income), but every little bit helps.

 

Debt:  I gave a full debt update here.

 

Overall, June was a good month! Here’s hoping July is just as fruitful!

 


Happy Independence Day!!!

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Happy 4th of July to all our U.S. readers and friends!

I wrote up a full budget update, but since my normal blogging day (Monday) happened to fall on a national holiday, I decided to push it back so it’s scheduled to go live tomorrow morning. Check back for that content post.

In the meantime, I want to wish all our American friends a happy 3 day weekend that is hopefully full of the 3 F’s:  family, friends, & food! : ) Have a safe and happy holiday!

For non-U.S. friends, have a great Monday! I’ll be back tomorrow morning with our budget update from the month of June!


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