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).
Total Income: $2,649
Expenses from February 2013:
$129–Fast Food and Pizza
Total Expenses: $1,370
*The Everything Else category includes expenses I don’t have a regular budget for. In this case, it included $10 for my yearly domain registration for Dividend Mantra, $35 to file my annual income taxes with Turbo Tax and the rest was for Valentine’s day presents.
Obviously not one of my finer months, but that’s because my net income was way down due to owing the Federal government a healthy chunk of change for income taxes. I file a 0 for exemptions, but I still end up slightly in the red at the end of the year because my checks are usually very light on a weekly basis with just one major commission check per month. That seems to throw things off a bit. In addition, I had hefty capital gains and dividend income which I owed taxes on. The dividend income definitely helped!
Expenses were mainly in line. I tend to average around $1,200 or so a month in total expenses, but this month was up slightly due to Valentine’s Day. That day included a rather expensive dinner, flowers and a small present. Exclude that and my expenses were average.
Food was high due to aforementioned V-Day dinner. That dinner alone accounted for about 30% of this month’s food expenditures. Excluding that one dinner puts me slightly below average for food spending.
Everything considered I’m rather happy with how this month turned out. I wrote a fat check to the IRS and spent quite healthily on Valentine’s Day and still ended up pretty good. There were no crazy, unexpected expenses that came at me from left field, which is always nice.
I managed to save 48.3% of my net income this month. Obviously well below where I’d like to be, but still rather nice considering the annual taxes owed. I hope this is the lowest savings rate month of the year, as I really want to achieve my highest annual savings rate ever!
My goal is to average a 60% savings rate of my net income, monthly. So far, I’ve hit rates of:
75.7% – January
48.3% – February
I’m sitting at an average of 62% for the year so far, after only two months. I expect February to be one of my lowest months, so I have high hopes of crushing my goal. I do, however, have a couple of costly expenditures coming up over the next few months. For one, I plan to fly home to Michigan to see my father for his 50th birthday at the end of March. Also, I’m slightly considering purchasing a cheap car and forgoing the so-far successful car-free lifestyle. This is for a number of reasons, but suffice to say it’s a lifestyle choice rather than a financial choice (obviously). We’ll see. I do quite enjoy the savings that not owning a vehicle offers.
How are your budgets going?
Thanks for reading.
Photo Credit: RambergMediaImages