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%

Savings

Last month, I took money from my emergency savings to cover the security deposit of my new apartment. I made sure to replace that this month.

Total April Savings: Budgeted – 17%; Actual – 15%

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Readers…

How did your April budget look? What unexpected expenses did you have?

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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%

Savings

This month I set-up categories for multiple saving funds in my budget. Instead of only adding to my emergency savings, I want to be able to add a little bit to an entertainment fund (races, concerts, etc) and a travel fund each month I included them in my budget to start a routine of adding to them.

I took money from my emergency savings to cover the security deposit of the new apartment. When I receive the check from the old place, it will immediately go into the emergency fund.

Total January Savings: Budgeted – 8%; Actual – 5%

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How did your March budget look? What unexpected expenses did you have?

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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!)

Savings

Again, I did not put as much into my savings as I would have liked to. I need to better enforce this.

Total January Savings: Budgeted – 14%; Actual – 11%

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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 this check. The person is forced to live paycheck to paycheck because if they save any of it, they are punished.

The solution is: there isn’t one

Unfortunately, there is not a good solution for this. It is a shame that money in a savings account is considered tangible instead of seen as an ”emergency fund”. However, if this were allowed, it would most likely be abused sooner or later.

When rules don’t apply

What this means, is a whole lot of people who really need help with their personal finances, are not learning any of it because they just cannot relate.

All personal finance advice mentions having an emergency savings as an integral part of controlling your finances, but that simply is not an option for those living on government assistance. Saving anything is deemed bad. How can you get your finances under control when you are encouraged to spend every penny you receive?

My dad saves what little he can in a figurative shoe box in his home. It is something, but unfortunately it does not earn interest and, more importantly, is not safe.

Readers

I have given this a lot of thought and cannot come up with any viable solutions. I would love to hear what your brilliant minds can come up with!

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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%

Savings

Confession, I poorly planned a lack of paycheck this month and had to emergency withdrawal from the savings. I put all of it back and then some, but not enough to make up the 10%. I plan to make up for this in February.

Total January Savings: Budgeted – 10%; Actual – 7%

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How did your January budget look?

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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.

Responsibility Vs. Obligation

It is no surprise that his beat-up car is still having problems to the point that I really feel it is unsafe for him to drive. Combined with him being so far away (2,077 miles to be exact), I would like him to have a more reliable car.

I had thought about buying him a cheap used car but would have to finance it and had not decided if that was a wise decision. Also, I do not trust my father’s taste in cars and fear he will purchase a cheap, used car that will just have further problems.

On the phone with him tonight, he mentioned badly needing a new car and that he was going to look at some within a certain price range. Then he flat out asked me for 2/3’s of the cost.

Sacrificing Your Financial Stability for Others

I have spent the last year and a half focusing on my debt repayment. Just earlier this year I finally paid off my last high interest loan and have since been focusing most of my extra money into my student loan. I have a small emergency fund but have not been able to set up a separate savings yet.

The amount of money my father originally asked for was actually more than I have in my emergency fund. I am afraid that the years of sending small amounts of money to help him out, made him think I am swimming in money like Scrooge McDuck.

He did not seem to believe me when I said I did not have that amount so he asked how much I could give. I caved in and said half of my emergency fund.

Familly Guilt

Immediately I began worrying. What if something happens to my car and I don’t have the money? Am I willing to risk going back into debt to help my parent? Am I responsible for taking care of my father like this, as he took care of me when I was a child? Is my father’s safety my responsibility?

On the phone, I felt like I couldn’t say no. I still am not sure I could say no, even though at this point, I do not feel it is my responsibility and if he cannot afford a car then he will just have to make-do like everyone else. But how do I say that to my father?

What are your experiences with lending money to family and dealing with the guilt associated with it?

photo source, photo source

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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.

How Much To Save?

It is difficult to know if you are putting too much or too little into your savings account. You do not want to spread your money too thin but you also want to make your savings goal in a reasonable amount of time.

My general rule is to use some percentage of your income. Start with 10% of your monthly income then increase to as much as you comfortably can.

Whether you manually transfer this to your savings or have an automatic payment is up to you. Just make sure to think of it as a payment, so you continue to pay yourself every month.

Creating A Savings Goal

There is little point to having a savings plan if you do not have a savings goal. It is best if your first savings goal is reachable within a year. We can use the calculator below provided by forex traders to determine how long it will take us to reach our goal. Also, this tool will help to determine how much to put into your savings monthly.

Staying On Track

Even if you are making automatic payments to your savings account, it is best to keep an eye on it. I use a savings worksheet included in my budget template. This allows me to see my savings balance, interest accrued and how close I am to reaching my goal! Seeing the percentage saved is a huge motivator! If I am 40% away from reaching my savings goal, I will try my hardest to transfer more money so I can reach my goal sooner than expected. There is a huge feeling of accomplishment once you have completed your first emergency or travel fund.

Where To Save?

There are numerous resources and other personal finance blogs that address this thoroughly, so I will just share my personal experiences. I use ING mainly because I like the lack of access to my savings. I never want to be tempted to use it and with a 3 day wait on transfers, I never am. Another high-interest rate bank is Ally. I have never used them, though some friends do. I suggest doing thorough bank research before choosing a savings account.

When To Save?

Now! Immediately! This month! As soon as possible, open a savings account, set a goal, make your first transfer and start tracking! Set up a payment system that you are comfortable with. Some people make savings transfer every paycheck, some just once a month. It really does not matter at all as long as you do it! You will be well on your way to not only having a solid emergency fund, but also to financial stability.

Readers, at what age did you open your first savings account?

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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!

You Have To Learn Somehow

We learn by making mistakes! This is okay! Since money is such a taboo topic, once someone is struggling with debt and finances, it is difficult to know where to go to find support. The only “support” I have heard advertised are the scammy “debt relief” commercials, which are clearly not very helpful. It is okay to admit your mistakes. All of us have made them! We all go over budget sometimes or forget to pay a bill until the day it is due. You cannot beat yourself up over that. There are numerous incredible stories online of people sharing their tales of conquering mountains of debt. It is possible to be debt-free.

Personal Finance

This is why “PF” stands for personal finance. We all have different values, priorities, wants and needs. Spend your money, intelligently, just the way you want to. What worked for one person’s debt elimination strategy may not work for you. This does not mean that you cannot be debt-free. This does not mean that you failed. It just means you need to try something different.

Once you have educated yourself financially, conquered your debt, and established a savings, it is now time to spread the word. Be more open about finances. If a social activity is over budget, speak up. If you have younger family members, teach them about money. Heck, the older family members could probably use a lesson too.

Readers, what was your very first financial mistake?

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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.

Bendable Cutting Boards – I love using these for chopped veggies and chocolate. Makes it so easy to dump chocolate pieces into the mixing bowl.

Rice Cooker – I never even bothered with rice until my roommate brought one home. I definitely couldn’t live without it now! Being able to pour three ingredients into the bowl then walk away, is the easiest side dish I can think of.

A Good Knife – Until I received this knife as a gift, I was using dull blades that took forever to chop through anything. A good knife means preparing food is not only quicker but is also more enjoyable and less tedious.

KitchenAid Mixer – Sorry but it’s true! I know this is an expensive one, but if you bake often (say, once a week) the amount of time this will save you is immeasurable!

One Measuring Cup – A set of measuring cups is not necessary. This all-in-one measuring cup is all you need.

Set Of Mixing Bowls – A good set of mixing bowls can be used for everything! Serving salad, holding potato chips, along with cooking and baking.

George Foreman Grill – This is another time saver. I can season chicken breasts and throw them on the foreman grill in just a few minutes. Several minutes later and they’re done. As a bonus, it does not take up much counter space at all.

Food Chopper – I love this for chopping up nuts, vegetable, oatmeal, anything! I consider this a decent substitute for a food processor.

Flexible Prep Bowls – I thought these were silly at first but I have found them to be very useful. They are a perfect size for dipping. I use them the most for making my spice mixes. I can measure out the spice into the bowl, then squeeze the bowl into a funnel to pour into a small spice container. Works perfect without making a mess.

Fleximat – Think of this as permanent parchment paper. It does make a difference for my cookies. I use it as a cheat actually, instead of upgrading my cookie sheet. Granted, if you never bake this will be useless to you.

Pampered Chef Stoneware – I love stoneware. For cookies, potatoes, breads, brownies, casseroles and other yummy foods I cannot think of, stoneware will bake them perfectly every time!

Readers, what are your favorite tools in the kitchen?

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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%

Variable Expenses

I went over in groceries! This happens time to time but I really need to get better on watching it. I certainly do not need more than $115 worth of food a month for myself.

Thanks to my Lipsy dress debacle, my entertainment expenses came in way under budget. I was credited $165 for the dress, which means my entertainment expenses were practically negative this month!

Total March Variable Expenses: Budgeted – 42%; Actual – 41%

Savings

I helped my father out with some car issues he was having. Unfortunately, I had to take that money out of savings, so I challenged myself to replace it by the end of the month. And I did! I saved 19% more than I had planned to. This certainly teaches me that I definitely can be putting more money into savings. I like the idea of learning my financial limits. What starts out as a sacrifice, soon turns into you realizing you don’t miss it at all.

Total Savings: Budgeted – 5%; Actual – 24%

Readers, how did your July budget turn out? I would love to hear!

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