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: $6,495
Expenses from August 2013:
$532–Rent & Utilities
Total Expenses: $1,746
*The Everything Else category includes expenses I don’t have a regular budget for. This month, I had to purchase some headphones for the new podcast ($44), an air mattress for visiting family ($35) and I also had to reinstate my driver’s license ($156). I apparently had my driver’s license suspended quite some time ago because here in Florida if you cancel registration on a car and don’t turn in your license plate the state will suspend your driver’s license. That sucks, doesn’t it?
Income was simply fantastic this month! I didn’t go through all of my old budgets, but this has to be my highest month ever. Everything went just right here. I had a huge month at work, with my income for the month being far above what I normally earn for the month of September. In addition, I had a fantastic month of dividend income. Finally, my online/bonus income was superb. Most of this ($695) was income generated from this blog. The rest was extra bonus income I made at work for certain achievements.
Expenses were higher than I would have liked. Specifically, food was quite a bit higher than my average. This was due to the aforementioned fact that I had family in town for a weekend during the month. Two of my sisters, along with my new brother-in-law came for a weekend in August to spend time with me. It was a great time, but unfortunately there was quite a bit of extra food expenditures involved. For instance, I decided one night to take all six of us out to a great Mexican dinner which was $145. That’s a month’s worth of restaurant costs for me. In addition, I got pizza for us one night and that was $40.
The pharmacy expenses were also higher than normal. I had to stock up on bathroom supplies this month, in addition to laundry detergent and some kitchen utilities. I don’t have entertainment expenses every month, but there were a few Redbox $1 movie rentals in the budget this month. What can I say; I’m a cheap date!
The rest of the expenses were fairly normal. I was quite happy to keep transportation costs down to a minimum and there weren’t a lot of surprises. However, this wasn’t a particularly frugal month. I’m a bit disappointed by the amount of money I spent, but I’m hoping to improve on these numbers in September as I don’t have any big expenses coming up.
I managed to save 73.1% of my net income this month. I’m very pleased with hitting such a high savings rate, as I consider anything above 70% the product of maximizing opportunities as often as possible and the type of savings rate necessary to achieve financial independence at an extremely early age.
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
57% – March
71.4% – April
64.2% – May
64.6% – June
71.4% – July
73.1% – August
I’m now at an average of 65.7% for the year so far. With only four months to go, I’m extremely confident I’m going to smash this goal! I’m really excited, as I believe it’s my ability to maintain a high savings rate rather than my investment returns that will dictate my chances for an early retirement.
How did things work out for you in August? Stayed true to your budget? Any unexpected expenses?
Thanks for reading.
Photo Credit: RambergMediaImages