Income/Expenses For November 2013

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 November 2013:

$3,892–Regular Paycheck
$902–Online Income/Bonus
$187–Dividend Income

Total Income: $4,978

Expenses from November 2013:

$537–Rent & Utilities
$190–Student Loans
$143–Health
$179–Groceries
$93–Restaurants
$88–Fast Food/Pizza/Takeout
$78–Auto Insurance
$67–Fuel
$40–Mobile Phone
$34–Pharmacy
$30–Gym
$19–Internet
$901–Everything Else*

Total Expenses: $2,392

*The Everything Else category includes expenses I don’t have a regular budget for. I had the oil and filter changed in my Frugalmobile early in the month for a total of $41. The remainder of these expenses were directly related to clothing. I recently discussed my need to upgrade my wardrobe for the first time in about a decade. I’ve been largely wearing the same clothes since my college days, but I’m a bit smaller than I was back then due to my increased focus on cardio and circuit training and less on heavy lifting. In addition, the clothes were just plain worn out. I’m a bit disheartened to spend so much on clothing ($860), but the great thing is that this was below my self-imposed budget of $1,000. I don’t have discretionary spending very often, but this was one of those rare cases. Hopefully, it’ll be another ten years before I have to buy clothes again!

Income was great yet again. I’m blessed to be able to pull down a very solid income in a tough economic environment. My day job net income of just under $3,900 was very strong. December is shaping up to be pretty weak in that department, so I take it when I can get it! The online income was simply wonderful. Only $60 of the income in the Bonus category was related to programs we ran at work this month, so the rest, just over $841, was directly related to this blog. Thank you all for supporting my journey and stopping by. It means the world to me! The dividend income was also most welcome, even if it was below my running monthly average.

Expenses, besides the clothing expenditures, were largely normal. Food was high, however. I spent a total of $360 on food this month, which in my opinion is ridiculous. I can only say that part of it was due to an anniversary dinner early in the month, as my girlfriend and I shared a 4-year anniversary. Besides that, however, I just spent and ate too much. I’m eating a lot healthier these days and it’s paying big dividends in terms of how I look and feel. And I don’t care what anyone out there tries to tell you, eating healthy is more expensive than eating cheap. When I first started this journey I was eating ramen noodles and PB&J almost every day. Now I’m eating whole foods and a lot more protein. There are costs involved, but I’m glad that I’m healthier than I was just a couple years ago. However, with this being said I need to curb the spending. I’m going to make it my goal to spend less than $250 in total food costs for December and continue watching my food spending going forward.

I’m currently shopping for car insurance, as what I’m spending to insure a 1997 Ford Escort is insane. I know it doesn’t have anti-lock brakes, but this is still crazy. I haven’t made any moves yet, however, because I have the potential opportunity to purchase another car. My current plan is to drive my beater until it has a major mechanical breakdown that wouldn’t make economical sense to fix, but I have the opportunity to pick up a 2006 Toyota Corolla with 20,000 miles for $5,400. As it usually turns out, it’s not what you know but who you know. My girlfriend happens to have a friend that knows a caretaker of elderly people here in Sarasota. One of the caretaker’s clients is 87 and unfortunately has cancer. Furthermore, her driver’s license has been suspended. Due to this, she’s selling her Corolla. I’m going to look at it Monday. I don’t want to spend that kind of money on a car, but if it’s in excellent shape (as it should be) I have a tough decision to make. I’ll keep you guys posted!

I managed to save 51.9% of my net income this month. Another ugly month, but most of this was due to one-time discretionary spending rather than a fundamental issue with my ability to control my spending or budget.

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
61.3% – September
50% – October
51.9% – November

I’m now at an average of 62.6% for the year. Looking ahead, December looks to be another expensive month due to holiday spending, so I’m going to do my best to exceed my goal. I’ll be honest, it’s going to be really close. Although, even if I don’t make it I’ll still consider saving 58% or so of my net income for an entire year to be really strong. We’ll see. I’m hopeful that I can just barely eek out a victory here.

How as your November? Did you have a great month for your budget?

Thanks for reading.

Photo Credit: RambergMediaImages

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35 Comments

  1. I understand your anguish over spending money on new clothes, but hey, as you point out, you’ll be set for the next 10 years. At least you got to address that problem now while you’re working.

    The food category is always hard to control. I’m hoping my wife and I can stay below $400/month in food expenses after we call it quits.

  2. 51.9 % savings for one month is more than 99% of the population does. The cost of foods keeps going up and up. One of the reasons for me investing is to be able to eat more healthy.

    When you go look at the corolla and it looks good, think if you can sell if for more if you are not going to keep it.

  3. Solid month! And even though 50% may seem rather low to you, comparing to majority of others, 50% is a huge savings rate to accomplish. Great year!

  4. Tis that time of year Jason. November was expensive for us too. My wife is in “full on” nesting mode, so I was painting and hanging lights/fans. Tomorrow I pick up the crib, so yeah, it’s been expensive lately. But she’s pretty reasonable, and it’s not like we’d let the little guy sleep in a box or something. One time expenses, as you said. Our grocery budget is $400 per month for the two of us, but we never spend that much. We probably grab a sandwich and watch the sun set a couple times a month also. I like creative date nights. You should be able to ramp up savings again after the new year. Have a great week.
    -Bryan
    -Bryan

  5. I find it really really impressive to be able to buy clothes for 860$ and still be able to save around 50%!!! Thats insane 🙂

    I follow this blog on a daily basis and you are one of the reasons I have worked out a new budget for myself. I was one of those living paycheck to paycheck with expenses being a big part of my wage. You got me thinking more about it and I have also sat a goal to save 50% of my wage. Its really hard in the beginning but im starting to get there. I own an appartment myself and am the one that stands for the mortage etc, so my wife only pays a part of the montly fee to the owners. Once we move, she will pay 50% of the costs for rent/loans etc so I expect my expenses to come down even more then and hopefully one day I will be as successful as you 🙂

    The best part about your blog is your honesty and the fact that you also where around the age of 28 when you started rethinking. It keeps me motivated that if you could turn around your life, then why cant I? Since we basically have the same situation at age of 28.

    Keep blogging and I’ll keep following you on your progress. Doing a damn good job so far!

    Cheers from Sweden 🙂

  6. insourcelife,

    That’s something I’m definitely thinking about. Although, the Corolla purchase would suck up most of the available cash I have on me right now. Still, it seems like a great deal. It’s well below blue book.

    Thanks for the suggestion!

    Best wishes.

  7. Spoonman,

    It’s funny. I can definitely see how people get caught up in the rush of spending. I was trying out clothes and everything I was trying fit me really well. It was really refreshing to put on clothes that weren’t all stretched and worn out. I’m the complete opposite of a typical consumer, and even I was getting caught up in it all. I could have easily spent more than I did, but I was keeping tight track of the receipts and adding everything up as I went.

    The funny thing is that this is pretty much my entire wardrobe. Everything else was given away to Goodwill. Other than a few polo shirts, a sweater and a coat, this is my entire wardrobe. I would suspect a lot of people spend a lot more money than that on all of their clothes.

    I’m sure you two can keep the food budget low. You’ve expressed some interest in possibly living cheaply abroad. There are many places where $400 would be living positively luxuriously. There’s some blogs I follow where people live in Thailand or Ecuador and spend less than half that much – and they eat out for every meal. Crazy stuff.

    Best regards!

  8. Pursuits,

    Thanks. I still had a great month when comparing myself to the rest of society, although it’s still not up to my standard. I hope to improve on these numbers going into 2014. It’s tough to save as much as I used to, however, due to having additional expenses these days like a car and health insurance.

    Yeah, I’m excited to see the car. If it’s really clean I might have to just buy it and see if I want to keep it or sell it for a profit.

    Cheers!

  9. DividendVet,

    Thanks for the support!

    50% is still pretty solid. It’s tough these days because I have a lot more on my plate, like health insurance and a car. I’m also eating more healthy than I was this time last year. It’ll probably be tough to hit 70% savings rates on a regular basis going forward, but you’re right: saving more than half of my net income is still great, relatively speaking.

    Thanks for helping me keep perspective. 🙂

    Take care!

  10. Bryan,

    This is an exciting time for you guys! Even though it’s expensive, it’s a good thing. 🙂

    I hear you on creative date nights. We live not far from Siesta Key, so just walking down the beach near sunset is an awesome way to spend the night. Cheap, too!

    Best wishes.

  11. Dividend Champ,

    Hey, thanks for stopping by. I’m really glad you have found some inspiration here. That’s exactly why I write and do what I do. 🙂

    You’re exactly right. If I can do it, anyone can. I’m nobody special. You just have to want change, and then put together a reasonable and challenging plan. Stick to your guns. The progress starts slowly, but ramps up over time. I’m proof of that.

    Thanks for the support. I hope you stay in touch, and I wish you nothing but the best of luck with your own journey!

    Best regards.

  12. If the Corolla is in good shape, definitely go for it! These cars have a reputation for running forever (well almost!)! And great going on the side income. It is also an added bonus that most companies this year has increased dividends.

  13. moneycone,

    It’ll be hard to pass up the Corolla if it’s in great shape. A Toyota Corolla of this vintage and mileage is exactly what I was originally going for when I was car shopping, but they were all way out of my price range. Many of this age and mileage were all near $9k. It was just way too much money.

    Thanks for the support! I hope all is well on your side as well. 🙂

    Best wishes.

  14. DM,

    For the love of all that is holy, do not wait on that Corolla. Back 2004 I bought, with my folks helping me cause I was still in school, a ’98 Camry for $6000 (and a similar situation at a neighbor’s house). I had it up until a few years ago. I took it from 48K miles to over 200K, and then gave it to my cousin (for free, in a family car swap). That it is still going with minimal maintenance. That thing also has taken out 2 deer with no damage (a Corolla might have trouble with that). Considering the year, the mileage, the lasting blue book value, etc. that is a steal.

    Otherwise, great save %, if only I could convince my fiancee that is a good idea…

  15. Yeah looking good! I think I save about 40-50%, but that’s with a family of 4 and my wife’s home looking after the kids 😉

    My expenses look like this:
    Rent – 826
    Food – 238
    phone/internet – 80
    Fun – 13
    Car – 9
    For my wife – 70

    The rent is pretty high now but we’re looking to buy our own place next year so it would probably drop with 200-300. And after 3-4 years the kids go to school so we can start sharing expenses as my wife gets to go to work so then I’ll be able to up the ante and fasttrack a bit.

    Hope you have a killer December!

  16. Fun $13, Car $9 Could you elaborate please. I’m trying to think of a month’s fun at $13 or what kind of car, insurance, gas & repairs cost $9

  17. Great month Jason! As many folks have said, the clothes are an investment and the car is a bargain at that price and mileage. I’d jump on that no matter what, even if only to arbitrage the situation and pocket an extra 3-4k on flipping the car.

  18. Life In Center,

    Wow, nice expenses there! I had my expenses down to about $1,150 or so for quite a while there – including $190 for student loan repayment. Unfortunately, my lifestyle has crept up a bit. Namely, I now have health insurance and a car. I’d rather not have either, but I don’t have much of a choice anymore.

    Keep up the great work in keeping those expenses low! 🙂

    Best regards.

  19. Dividend Gremlin,

    Wow, sounds like that Camry held up incredibly well! My parents actually had very early 90s Camry (1991, I believe) that they drove to almost 300,000 miles. That car never even needed the clutch replaced. It was one of the best purchases they ever made. Really wonderful car. Minimal repairs.

    I think I have no choice but to pick up the Corolla. I looked at it today and I’ll make a decision over the next 24 hours. I’ll keep you posted!

    Best wishes.

  20. w2r,

    Thanks! I appreciate it. Not one of my best months ever, but I have more costs these days.

    Yeah, the car is an absolute steal. I looked at it today and it’s everything I thought it would be. It’s in immaculate mechanical condition. The car’s a little dirty and the seats are surprisingly a bit beat up, but other than that it’s a great buy. I’ll probably be buying it tomorrow. I could sell it for $9k on Craigslist in a heartbeat.

    Thanks for stopping by!

    Take care.

  21. Eating cheap may pay off in the short term, but the costs catch up to you in medical bills later in life. Better safe than sorry.

    Also, it looks like realty Income Corp (O) has had a recent price drop, are you considering investing more capital at the discounted price?

  22. DM,
    Go for the Corolla, that was my first car when I bought it in 1997 for $5000. It ran very good for a great number of years, I always like Honda and Toyota for their long term.

  23. BuySmart,

    You’ve got it right. Eating cheaply can be more costly in the long run. However, I don’t regret eating extremely cheaply for a good year or so there. That provided a bit of a springboard to where I’m at now. Plus, I learned exactly what I can get by on. You gain a lot of perspective about what you “need” when you’re living off of sandwiches and ramen noodles.

    I’m definitely considering O here. Unfortunately, I might be a bit light on capital due to the likely purchase of the Corolla. That will likely tap out most of my free capital right now. I hope I can sell the Escort quickly and replenish some of my reserves, but even then any stock purchases will likely have to be light. I also have holiday spending to account for. It’s going to be an expensive month!

    Thanks for stopping by.

    Best regards.

  24. Dividend Mom,

    It seems like buying the Corolla is the right thing to do. When I first heard of the car I literally jumped out of my seat. I was so excited to buy this car. Then I kind of retreated because I didn’t want to spend so much money on a car; I started to think about all the high quality stocks I could buy! But now after looking at the car I realize I have the opportunity of a lifetime.

    Thanks for your perspective on this. I’ve always wanted to own a Corolla.

    Take care!

  25. I hear that. Between Hondas and Toyotas, my immediate family has put 2 Camry’s and numerous Accords/Civics into the 100K and 200k range in the last decade. Since you like long term investing, I say that is a great choice.

    -Grem

  26. Car was 9€ for gas, the fun was 3 times going swimming and sauna 🙂 The fun I have is almost always free, spending time with the family(walking, bicycling, skateboard, rollerblades, guitar/music…)

    The insurance for the car is about 150€ but I didn’t count that as I pay it once per year. Also 37€ for the “katsastus”(they check if it’s still functional and you get 1 year worth of driving, not sure whats it called in english) The car works fine, what’s not broke etc… 🙂

    The expenses were low because I made an effort to save, this december I’m pretty sure it will rise a bit. But then next years a whole different cookie as I plan to save at least 17k 🙂

  27. Fig,

    Thanks! It’s been a long year, with some ups and downs. Luckily, I had more ups.

    It’s tough to save that much money over years, and not so much because I’m enticed to spend more, but rather just because expenses tend to creep in here and there. A small bill here and there can add up in a hurry. Plus, I now have a car and health insurance. I’ve become a bit of a spendthrift! 🙂

    Thanks for stopping by.

    Best wishes.

  28. Hey Jason,

    In the last post you made about your food costs, you said you were primarily eating sandwiches and ramen, but it seems like that has changed. Could you do a new post about the meals you eat and what they cost?

  29. BuySmart,

    Great idea there. I should revisit that topic here pretty soon because the information in that previous post is a bit outdated now with dietary changes. Dinner is mostly the same with sandwiches usually being the meal du jour, and breakfast hasn’t changed much. A bit more oatmeal here and there, and the cereal I eat is usually oat/grain based and low in sugar. Lunch is mostly what’s changed as I now eat Healthy Choice or Lean Cuisine meals instead of ramen, or I’ll pack whole foods like chicken and pasta with a low-fat sauce. So far, it’s working.

    Thanks for the idea. Good luck with your 2014 goals. I hope you’re able to invest the $20k you’re aiming for!

    Best regards.

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