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).
$235–Bonus and Spiffs
Total Income: $5,216
Expenses from December 2012:
Total Expenses: $1,189
*The Everything Else category includes expenses I don’t have a regular budget for. In this case I spent $9 on some oil for my 49cc scooter. It’s a 2-stroke and consumes it’s oil, and does require regular additions.
Income was pretty strong this month. I had a rather strong November in terms of sales, even factoring in the Thanksgiving holiday. I’m lucky to be in a city that is relatively vibrant in an otherwise down economy. Dividends for last month were my highest ever, and it’s amazing that the passive income covered such a large portion of my regular expenses last month.
Expenses were definitely held in check last month. You’ll notice no gift expenditures, even though Christmas has come and gone. That’s because I viewed it as an exchange in wealth, and actually the holiday event netted slightly in my favor. So, instead of adding up my gifts as “income” and factoring that against gifts as “expenses” I just excluded everything. It makes more sense, as otherwise it would skew my income and expenses unfairly.
Food was a tad high this past month. This is because of the holidays. I plan to bring this back down slightly going forward. If I can hit somewhere around $250 over the next few months I’d be pretty happy with that. You’ll notice a slightly high fuel bill. This is because I borrowed a car from my parents while I was in Michigan for the holidays to visit my best friend about an hour away. I filled their gas tank up on my way back home, as it was full when I took the vehicle.
Everything else, in terms of expenses, was pretty fantastic. I’m really ecstatic any time I can get my total expenses down below $1,200 in one single month. If you factor out my student loans, which is just old debt service, I actually spent closer to $1,000 to sustain myself. Pretty neat!
I managed to save 77.2% of my net income this month. That’s fantastic. It’s among one of my highest monthly savings rates ever, and I finished 2012 rather strong after a weak summer. Now that 2012 is complete, I can show you how the entire year looked like, month-by-month, below.
My goal is to average a 65% savings rate of my net income, monthly. So far, I’ve hit rates of:
30% – January
74.7% – February
39.6% – March
72.6% – April
55.2% – May
22.3% – June
29.9% – July
70% – August
76.9% – September
51.9% – October
79.2% – November
77.2% – December
I finished the year of 2012 with an average monthly net income savings rate of 56.6%. Pretty solid if you compare that to people my age, but way below the standard I set forth for myself at the beginning of the year. I’ll aim to improve on this number in 2013.
How are your budgets doing?
Thanks for reading.
Photo Credit: RambergMediaImages