27 and Frugal

Since incomes are relative, my recaps are in percentages instead of dollar amounts.

Income

I received an income tax refund but also had to pay some taxes, however the refund did make for some nice extra income this month. This is fortunate since I forgot to factor it into April’s budget.

Fixed Expenses

I am still adjusting to the new apartment utility expenses which are, thankfully, much cheaper than at the last apartment.

Total April Fixed Expenses: Budgeted – 44%; Actual – 35%

Variable Expenses

I became a bit too excited about updating my summer wardrobe and spent far too much on clothes. Also, I did my annual hair highlights and should have factored that into my budget from the beginning. Thankfully my tax refund helped to balance out this over spending.

This was the first month I tracked my alcohol expenses individually. My estimate wasn’t too far off but I was surprised by just how much I spent on alcohol alone. Really, it is more the cost of socializing with friends, but I would like to cut this down next month.

This was also my first full month of commuting from Jersey City into Manhattan. The commute was far less than I expected with a total of $63 for the entire month! I separate MTA (nyc subway) because that is for my own leisure purposes and is not related to my commute.

Total April Variable Expenses: Budgeted – 32%; Actual – 22%

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Since incomes are relative, my recaps are in percentages instead of dollar amounts.

Moved!

This was a weird month because I unexpectedly moved to a new apartment. Throughout the month, I incorporated moving expenses (and profits) into my budget and made decreases in other categories to offset the unplanned spending.

Income

I sold my car, received my apt security deposit, received an auto insurance credit and sold various pieces of furniture this month. This resulted in an additional $2,000 to my monthly income. For this reason, the percentages are not a direct comparison but still useful to know.

Fixed Expenses

I cancelled my auto insurance when I sold my car and received a refund for what I had already paid. I went over on my texting again, however, I have decided to increase my monthly plan by $5. I have the room in my budget to do this and it makes more sense than paying the overcharges every month.

Total January Fixed Expenses: Budgeted – 62%; Actual – 35%

Variable Expenses

When I learned I was moving, I immediately added an “apt/move” category to my budget and made adjustments in other categories accordingly. Thankfully, I over-estimated my moving expenses!

Total January Variable Expenses: Budgeted – 62%; Actual – 50%

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Since incomes are relative, my recaps are in percentages instead of dollar amounts.

Fixed Expenses

All good this month! I ended up skipping two therapy sessions due to scheduling conflicts this month, so I did not spend as much on that as predicted

Total January Fixed Expenses: Budgeted – 62%; Actual – 59%

Variable Expenses

I am embarrassed – I did terrible this month. I went waaaaay over my entertainment budget. However, most of the purchases are for shows/races/events that are occurring later in the year. I need to decide if I should spread these purchases out better or just get them all out of the way at once, as I did this month.

I caved in and finally bought a winter coat (on clearance!) after living in NJ for four years without one. Unfortunately, I did not budget for that.

Every month I budget low for groceries with the good intentions of buying less, but it is so difficult for me to do this. I need to be more realistic about this. To balance it out, however, I was under budget for eating out, which always makes me happy.

Total January Variable Expenses: Budgeted – 22%; Actual – 40% (eeeeeeek!)

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I have written about my dad several times now. Since our last episode, I have learned that he will receive less government assistance if he has any money in a savings account.

Savings accounts are not allowed

The amount of government assistance a person can receive is based on lots of financial factors like income, investments and bank accounts. The more money you have in investments and bank accounts, the less government assistance you will receive (if at all).

However, the problem here is, without being able to build up a savings, how can someone stop being dependent on … Continue reading »

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Since incomes are relative, my recaps are in percentages instead of dollar amounts.

Fixed Expenses

Once again, I went over my texting plan. This happens from time to time but still not often enough for me to up my plan to unlimited.

However, other utility bills were under budget this month, bringing my total fixed expenses under budget.

Total January Fixed Expenses: Budgeted – 63%; Actual – 62%

Variable Expenses

This was the first budget where I broke “entertainment” out into three separate categories: miscellaneous, clothing and entertainment.

I also made the new category “misc transportation”.

Creating these additional categories really helped me to gain a better idea of my spending, without over-complicating the budget.

By breaking “entertainment” out into other categories, it’s noticeable that I really don’t spend that much on actual entertainment at all.

I really over-budgeted that this month since I was not sure of my actual “entertainment” expenses. For February, I will adjust accordingly.

I did realize that I spend more on “misc” than I had thought, since I was previously including this into “entertainment.” I went over budget in this category, but not enough for a percentage change. I will increase my budget in this for February.

Total January Variable Expenses: Budgeted – 25%; Actual – 20%

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I have previously written that my father lives on a fixed income in Wyoming. I have also mentioned that he borrows money from me.

It’s A Slippery Slope

Perhaps, I started it all. Every month or so, I would send my father a phone card so he could stay in touch. The $30 or so a month was not too much of a burden for me to help out my father who has a limited income. When I visited him two years ago, I bought him some groceries and asked if he needed anything else while I was there. Now, I do not have that much disposable income myself, but I do have more than my father and know that it is my responsibility as a daughter to take care of my parents.

Then, earlier this year, his old beat-up car really started having problems and he asked to borrow $600. I use the word “borrow” as he did but I am not expecting the money back very soon (if at all). I sent him the money.

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I have previously written about tracking your savings within a budget just as you track your expenses. However, this is assuming that you already have a savings account, savings goal and long-term financial plan in mind. So, this time, let me start from the beginning.

Why Save?

1. Emergency Fund: This savings is essential for financial stability. Unexpected problems will always come up in life that cost money. Car issues, home problems, medical emergencies, job loss, computer malfunctions and family emergencies are all things we must plan for, even if we hope they never happen. The experts suggest saving 6-8 months living expenses.

   To get started, let’s set a reasonable goal of 3 months. Using your budget, calculate your monthly fixed expenses (only) and multiply by 3. At a minimum, this is how much you need to survive for three months.

2. Travel Fund: Everyone wants to go on a guilt-free vacation! Start saving early so you have enough “splurge” money to not dread coming home to credit card bills.
3. Car Fund: If you are thinking about purchasing a car, start putting some money in savings now for it. Set your goal to be the down payment.

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My new roomate saw me in the kitchen the other day and said she was impressed with my cooking skills. When I asked if she cooked, she replied, “by necessity.”

“By necessity” is exactly how most of us learn to handle our finances. Very few people have been taken step-by-step through balancing a budget, reviewing a check book, tracking bills and managing a savings. Instead, we are expected to figure this out for ourselves. It is no wonder so many people fall into debt.

Invisible Money

There are a plethora of cooking shows on tv. Every cuisine, style, and cook time is shown with complete details and visual instructions of how to prepare each dish. Then you have personal finance, which is rarely mentioned on television.

When money is shown in the media, it is often because someone won or lost a large amount of it. Sitcom couples are rarely shown balancing their budget or saying they cannot afford something (without it being the joke of the episode). In fact, the only time money is usually discussed on television is during a credit card commercial.

Society in general tends to hush conversation about money. Salaries are never to be mentioned among friends, budgets are a boring topic, and no one wants to be the one who “can’t afford it” in the group.

As a child, money is invisible. It is not until your first job that money becomes relative and even then, it is merely disposable income as most 16 year olds live at home without many bills.

Without being taught how to handle money or given real life examples of proper budgeting, along with being surrounded by credit card companies, it is no surprise that we make financial mistakes! Continue reading »

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Alton Brown may not be a frugal expert but his kitchen-item buying advice is dead-on: “Do not purchase uni-taskers.”

However, there are items that we eventually need to purchase. Here are some of my personal recommendations, items which I could not cook or bake without!

Magnetic Double-Ended Measuring Spoons – These are far better than any metal spoons on a ring. Being able to use one spoon for both dry and liquid ingredients is extremely convenient. You will never lose the spoons either due to their brilliant design.

Cheese Graters/Containers – I love that these containers make it so easy to grate cheese without making a mess. When you have extra, just put the lid on top and store it in the fridge. Continue reading »

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Since incomes are relative, I have decided to go over my budget recaps in percentages instead of dollar amounts.

Fixed Expenses

My electric bill decreased and car insurance increased just enough to balance each other out.

Total May Fixed Expenses: Budgeted – 50%; Actual – 51% Continue reading »

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I did much better on my May budget than I was expecting!

Fixed Expenses

I went over on my text messages, again! It’s a shame no one uses email anymore because it really would help!

Total May Fixed Expenses: $1,532.70 Continue reading »

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I did much better on my March budget than most people did with their tournament brackets! It was an odd month because I only received two paychecks due to starting the new job. I am looking forward to April being a normal month so I can adjust to my new commuting expenses and weekly paycheck.

Fixed Expenses

I was under or even with all of my monthly bills (yes, even my cell phone). I was very happy to see my gas/electric bill come to only $63.95/each this month. I had $90 budgeted because … Continue reading »

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How’d I do this month?
Bars: $0/$20
Bills & Utilities: $114/$200
Car Payment: $0/$300
Cell: $77/$80
Entertainment: $49/$50
Gas: $156.36/$190
Gifts: $39/$300
Groceries: $15/$200
Personal Care: $0/$20
Restaurants: $18/$70
Shopping: $11/$100
Student Loan: $0/$162
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Making a budget is tough! For starters, you can’t just go out and make your budget. Why? Well, how are you going to know what to budget if you don’t know what you already spend?

Be Realistic

See, this is usually what happens with budgets. You make your budget. You estimate $100 for groceries and $50 for eating out. By the second week, you’ve already exceeded both of these budgets. Not wanting to starve yourself, you declare budgeting to be “stupid” and “a waste of time.”

A budget is only successful if it is realistic. So, let’s start with my Beginner’s Budget template that I’ve already created just for you. (Yes, you!). Continue reading »

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