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Posts tagged with: living on last month’s income

May 2015 Budget Update

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I have been dreading this post. Like – dreading it!

This month has not been great in terms of our budgeting. I’ll show you the numbers in a second and I know they’re higher than our average numbers, but I also don’t feel like we went crazy or anything.

In basically all categories, our overspending was due to known expenses that I had failed to plan for. Basically – no big surprises came up (no crap river or emergency dental visits). Instead it was stuff like needing to buy the girls new swimsuits for their free swim lessons (they grow too fast! I tried to put them in last year’s swimsuits and the resulting atomic wedgies indicated it was NOT going to happen). Also, I mentioned that my mother-in-law and grandmother-in-law visited for four days. While here we paid to take them out to dinner one night in celebration of MIL’s birthday (and to thank them for their visit). That single dinner blew our entire month’s eating out budget. I should have increased it for the month since I knew this visit was coming up. Same thing happened with groceries. Aside from the one big dinner out, we did most of our eating at home and I hadn’t adequately planned by increasing our grocery budget.

At the month’s end we were over budget by nearly $400.

This is where YNAB comes into play and – again – why I have loved it so much (see my full review here). Going into the software I was easily able to move some monies around. I’d originally planned to put some money toward savings for dental/vision and annual fees but I re-allocated that money to different categories. Additionally, I had to tap into some of my Capital One 360 savings accounts. I didn’t want to pull all the money from my Emergency Fund (more on that in a minute), so I pulled about half from the EF and the other half from my semi-annual fees account. This move was partly psychological and partly strategic. It didn’t feel like as big of a “hit” when I spread the money out (instead of taking solely from my EF). That’s the psychological part. How was this move also strategic?

Sigh…

Here’s the part I’ve REALLY dreaded of this post. I have to tell you guys that this month did not go well for husband’s business. In the past when we’ve had lower income months I’ve gotten all introspective about it and been very public with what I think our mistakes were and how to correct them. But in the interest of keeping some things just between hubs and I, I’m not going to go into reasons this month (though he and I have discussed them endlessly, so its not for lack of analysis).

Long story short, Hubs’ business came up empty-handed this month. Completely. This isn’t the first time, though it’s the first time in a looooooong time (first time since I’ve been blogging). In the early days of his business some 4+ years ago this happened more frequently. There were even some months where he’d lose money! (Yes. As in, we’d have to take money from our personal checking/savings to cover his business losses). On the overall, his business’ trend has been upward. But this is life owning a small business. Some months are awesome! And some months you may not make anything. You hope the awesome months are more frequent and the crappy months are few and far between (and, in general, that’s the trend his business has been taking). But this month was a crappy one.

So how will we survive?

Well, fortunately, I still get paid from my job! And with the shortage we’ll be forced to raid our EF. However, we’ve also been trying to sell things to minimize our losses. Husband has sold some of his shoes (it’s funny, but he has a larger shoe collection than I do!), and has sold a nice watch he owns. Our regular pay will still be business as usual (being saved for the following month since we live on last month’s income). But with any side-money we receive from selling things, we’ll use it to supplement the current month (June) to minimize the amount we have to take from our EF to survive the month.

So there you have it. Last month’s overages and the plan for next month.

Now, onto the actual numbers.

 

Place Amount Spent
Rent 1055
Electricity 127
Water 61
Natural gas 18
Sprint (2 lines) 119
Cable/Internet 99
Car Insurance 58
Health Insurance 394
Trash 35
Preschool 1024
Gift-Giving 29
Restaurants 162
Entertainment 10
Groceries 550
Gasoline 71
Medical 11
Household Goods 100
Clothing 20
Toddler purchases 60
Work Purchases 47
Rainy Day Savings 130
Savings Goals 500
Debt Payments 1708
Total 6388

I hope your May was more fruitful than ours! Here’s to hoping we knock it out of the park in June!

Do you/have you ever had a variable income? How do you handle the fluctuations? Our variable income is one of the main reasons I loved YNAB’s idea of living on last month’s income. It’s also one of the main reasons we have a larger emergency fund than the $1,000 beginner EF recommended by Dave Ramsey. That’s way too low for my comfort level given the sometimes unexpectedly low income months we have on occasion.

 

Note: My YNAB and CapitalOne360 links are refer a friend links. If you join it doesn’t cost you anything extra but I do get a small compensation for the referral. All opinions are 100% my own and I joined paying my own money so this is not a sponsored post and I received no discount or anything for mentioning them. Particularly for YNAB, I’m just giving them a shout out because their budgeting system really has made a HUGE impact on getting our financial house in order!


A General Life Update – Rambling Style

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Accept my apology up-front for this kind of rambling update.  I think Ashley sent us her cooties (ie allergies) and it’s been a miserable couple of weeks for those of us with allergies and those of us without listening to those that do have allergies.

As of this week, I have paid all this month’s bills and next month’s bills (ie rent + utilities + insurance.)  For the first time in I don’t know how long I am not waiting nail-bitingly to see when my checks arrive and prioritizing who to pay with this money and who to pay with a subsequent payment (remember, as contract labor I have no set pay dates and am really at the mercy of my clients time table.)

I still have 4 checks that should arrive before the end of the month or soon thereafter.  I will be socking away that money for June’s monthly bills and then proceeding with debt payments (remember we only paid the minimums this month to allow me to get to a place to live on last month’s income.)

We’ve spent all of our grocery allowance for this month and I’m hoping to save May’s until after our mini-vacation in mid-May.  We will have 2 months (April and May) of our Misc money to spend on our vacation.  And frankly, living with no extra has not been so hard.  I think having the incentive of what promises to be a really nice mini-vacation has made it much more bearable.

As  I mentioned last week, I have gotten two new work jobs…one project and one on-going.  I have decided to delve into that money a little bit and give eh kids a birthday party this year.  It will still be frugal, but with us being so close to being consumer debt free, this being “extra” money that is not currently incorporated in our budget and the kids being SO, SO good about our cutting back in all aspects of life, I think this is a great way to treat them.  I’m hoping that since they are not expecting a party, I can pull off some sort of surprise party…still frugal.  So I’m sure I’ll post on this once I get more of a solid idea.

We are wrapping up our school year this week with standardized testing.  So every morning the younger two kids go to a small private school who is also doing their testing.  For a nominal cost of $25 each, they sit in a classroom with kids their age and take their tests.  We’ve done it this way since they were K and 1st grade and it’s a week they look forward too as they get to be in a “classroom” and it symbolizes the end of their school year.  (We school year round, but our summer schedule is much looser and we will take the next few weeks off until after our mini-vacation.)  The twins can’t go to this same school as it only goes through middle school, so I order their tests from setontesting.com and I proctor them. That costs me $40 per child and it will take 2-3 days 2-3 hours per day.  Just a glimpse into our homeschooling world and costs associated with it.

I think that about sums it up on the financial end.  We are still staying busy with gymnastics 3 days a week, field hockey 2 days a week, Navy Sea Cadets 1 drill weekend a month and finishing up the high school lab sciences for the twins.


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