I find budgets to be boring, yet I have to follow a spending plan in order to accumulate income producing assets. I don't have an inheritance or any kind of outside help. I must do this on my own and I must live below my means. Here's the plan:
Income:
$3,350 - Take Home Pay
Expenses:
$630 - Rent
$10 - Renters Insurance
$60 - Utilities
$50 - Internet
$10 - Cell Phone
$90 - Car Insurance
$275 - Gasoline
$60 - Haircuts
$250 - Groceries
$415 - Fun Money
$200 - Miscellaneous (car maintenance, clothes, presents, etc.)
Savings:
$225 - Car Savings Account (I do not have a car note)
$250 - Wedding Savings Account
These items represent money that WILL be spent, just not right now. Since it will eventually be spent, I cannot include it in my savings rate.
Investments:
$800 - Brokerage Account
$25 - Lending Club
Savings Rate: 24.6% (825/3,350)
The income side of the equation is especially strong at the moment. This is the most money I've made in my entire life! $3,350/month net is about $50k/year gross. I'm a high roller now!
I see two areas for potential improvement: car insurance, and gas. Seeing as how I'm over the age of 25 and have a pristine driving record, 90 bucks a month seems too high for insurance. I ought to do some comparison shopping. Gas is a tough one. While my SUV does guzzle gas, I think I'll need the 4X4 for winter ski trips. I may get a different vehicle next year, it remains to be seen. Other than that I think I'm doing great. I'll have to finagle a couple larges purchases somewhere in there as I need to purchase a season ski pass and plan to buy a new firearm.
If interested, my past budgets (while I've been blogging) can be viewed here: South Korea, North Carolina
Try Safeco for auto insurance. I reduced my bill by $30/month, for 2 cars.
ReplyDeleteRock on
Thanks for the advise, I will take a look. So I far I shopped around a bit and discovered Statefarm could save me about 20%. I maintain good coverage plus in general Colorado is expensive for car insurance.
DeleteCI, you can also save on hair cut. Not sure if that $60 is monthly or every let's say three months, but I think it can be saved. It depends on what hair cut you like. I like it short (number 1) and thus I use my own hair cut clipper and do it myself. With such short hair cut, you cannot go wrong (and if so, well, in two to three months you will be fine again). So just use a small mirror in front of a big one and go for it. Great 60 bucks. You will have it paid back in one or two self made hair cuts.
ReplyDeleteI also keep similar savings such as annual homeowners tax, life insurance annual premium, etc., out of my regular saving ratio, since these are money which will be spent later. Good job!