Each month I will post my income/expenses for the previous month. I track every dollar in and out, so what you see is exactly what I earned and spent (rounded to the nearest dollar).
Income from June 2011:
$100–Bonus and Spiffs
Total Income: $4,270
Expenses from June 2011:
$54–Fast Food and Pizza
Total Expenses: $1,155
As always, in the interest of full disclosure I like to display my income and expenses from every month for public view. This will catalog my journey to financial independence and prove that it is possible to achieve early retirement on relatively modest means.
Well, I’ve had my best month ever. This budget was the culmination of a journey I started last year where I became determined to cut expenses anywhere I could. This budget shows the result of cutting out my car and riding my bike/bus to and from work. It shows how I have made cuts in food, cable and the cell phone. It isn’t easy to bring my expenses to below $1,200 for a full month, but the end result is very satisfying.
I’m pretty proud of this budget, overall, and really don’t know where I’d make many more cuts. My food costs were a little high this month as I’ve been a little less strict about food and generally just enjoying my meals more. The small increase in food costs results in an exponentially higher quality of life for me. The small movie tab was due to me taking my significant other out to see a movie, and paying for slight costs over and above the free movie tickets I used from Coke Rewards. We went to see The Hangover 2. Not bad. I also had a small fuel charge due to borrowing my parents car while I was visiting up in Michigan.
I managed to save 72.9% of my net income this month. I’m extremely proud of this figure, although I don’t know if I can keep it quite this high due to the fact that my income was a little high this month. I took a week off work to visit some family and participate in some training for work. Due to this, my commission check in July will be low, and I received a small sum of vacation pay in June. Therefore, June’s income is slightly inflated and July’s will be down quite a bit.
I hope these numbers are inspiring for any frugalists out there who are determined to keep a high savings rate and invest for their future. It’s challenging, but extremely rewarding.
My goal is to average a 50% savings rate of my net income, monthly. So far, I’ve hit rates of:
I am now at an average of 52.9% for the year. I’m ahead of my goal and am confident I will meet and exceed a 50% savings rate average for the year.
Thanks for reading.
Photo Credit: RambergMediaImages