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Posts tagged with: monthly budget

Plan #2: Change to My Savings

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As previously mentioned, I have been adamant in my savings since I started my new W2 job back in March. I have saved 10% of any money that has come in with the ultimate goal of $10,000 in savings. Now that this goal is in sight, it is time to turn my focus to my debt and cut down on my savings.

Where I’m at Now

I’ve recently posted my Monthly Budget and my overall Debt Load. Then I took a cut in works hours and added a new sport. I am LOVING the freedom of working less hours per week.  I get home and get to sit down with the kids without feeling like a weight is on my shoulders to get back to work. I get to spend some of my “down time” when the kids are at practice reading a book for fun rather than focusing on work projects all the time.

However, I do need to look and see where the money is going to come from for Princess volleyball. I do not want this new expense to adversely affect my Debt Payoff Plan. I’ve spent about an hour a day reviewing my budget line by line to see what I can cut or move some money around.

Cut My Savings

Two things stand out as the places to cut…kids’ activities and related costs AND savings.  I think most everything else is pretty bare bones; although, I am looking at that too. But for now, I have decided to change my savings plan.

Instead of saving 10% of all income, I am now going to save 10% of my W2 income only. This cuts this line item almost in half and makes up some of the deficit.

This savings in coupled with my 401K deducted automatically from my W2 income and my Self Lender account where I save $97 per month. I’m looking for a few more cuts before I finalize my new budget.

Thoughts?


Hope’s Monthly Budget – Fall and Winter, 2017

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This is my current monthly budget. A debt update is coming up next. I think most of this is self-explanatory, but I’ve added a few notes below.

Budget

Personal ExpensesBusiness ExpensesSummary
Allowance400Adobe30Total Personal3634
Auto – Gas/Main250Cell Phones286Total Business509
Auto/Rent Ins315Dropbox (annual – Oct)8Total Debt Payment1920
Clothing (bi-annual)150Internet77Total Monthly Costs6063
Electric150Microsoft (annual – Jan)8
Groceries/Eating Out600Misc100Income
Gymnastics350Total Business50910993200
Health Ins305W-23462
Life Ins (annual – Dec)21Debt Payments
Rent650Car Payment400Total Income6662
Spending200CC100
Water/Gas/Trash75Computer Equipment85Savings Goals
Spanish160Other500Emergency Savings Goal700
Amazon Prime (annual)8Self Lender (Christmas)97Couch
Student Loan307
Summer Camp/Activities375
Universal56Total Savings Goals700
Total Personal3634Total Debt Payment1920Total Extra Income-101.0

Details

Monthly Expenses – These are our day to day living expenses. Many have some flex money built in, specifically gymnastics which typically runs $240 per month. I added the extra money to cover the competition costs that must be paid during competition season (Nov-Apr.) I don’t know how much they will be with our new gym, last year I paid $600 in meet fees. Spanish is new. I’ve hired a online tutor to work Princess and Gymnast 1 hour a week, this was our first week.

Business Expenses – I’ve added my regular business expenses including our cell phones, internet and so on because I thought my budget would look funny with out these important expenses. (These are associated with my contract work.)

Debt Payments – I have another post on this category coming this week. I am grateful that a lot of this debt is chosen – summer camps and activities, Universal and a Self Lender loan (a chosen debt in an attempt to help repair my credit) versus stupid decisions or debt hoisted upon me by other’s decisions.

Income – I continue to work three jobs regularly, and have recently picked up a couple of new smaller contracts so we will see how they work out. The kids are starting to ask when I will cut down on my work hours. But I am not there yet.

Savings Goals – My emergency savings is still my #1 goal. But I am starting to think of other “things” I would like, specifically a couch. I’ve put it on the budget as a holding place, but I am not actively pursuing it at this time. In my head, I’m thinking next summer for a couch.

Summary

I am in the negative as far as this budget goes. Reality is that I spend quite a bit less than this on a regular basis, but there are certainly months where it is more. I feel like this is a true representation of where my money goes on a monthly basis.

My FSA, vision and dental insurance and 401K deductions all come out of W-2 income. I have consulted with an accountant and for this year, I am in a good place tax wise due to the Adoption Tax Credit. I will have to adjust my tax rate for next year.


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