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).
$140–Bonus and Spiffs
Total Income: $2,434
Expenses from July 2011:
$36–Fast Food and Pizza
Total Expenses: $1,212
*-The Everything Else category includes things I don’t have a regular budget for. In this case, it was an application fee for an apartment complex I am likely moving to. I will talk about this very soon, but basically I’m trying to cut down my rent costs and also move closer to the bus stop for public transportation. Double whammy.
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 believe this is another successful month in terms of budgeting. My income was WAY down, and this was due to a number of circumstances. First, this is off-season in southwest Florida, and typically the auto business is way down during the summer months. I expect things to ramp back up in late August and segueing into September. Second, I took some time off in June, and while the vacation was completely free, it did have an impact on my bottom line. I am on a 100% commission pay-plan at work, and when I don’t sell work I don’t earn income. Oh, well. Time off is well deserved and needs to be taken when necessary.
I’m extremely pleased with the expenses. Although the income was off, the expenses were right in line with what I had anticipated. The only non-recurring expense was my application fee to a leasing agency. Without that, I would have been below $1,200 for the second month in a row. Overall, this is a fantastic expense line. Food costs were a little high, but I ate healthier during the course of the month. I ate less ramen noodles and more meats/cheeses for lunch at work.
I managed to save 50% of my net income this month. That’s actually pretty good, considering how far down my income was. I’m hoping to get that number north of 60% for the rest of the year. We’ll see how successful I am with that, as a few planned expenses will be soon approaching such as purchasing a small moped.
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 52.4% 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