My goal was to be able to live on 45k a year. That way, in my mind no matter where my job took me, what happened, I would be okay. Now, I make close to double that, (we will say minus taxes about 60k) but I hate to be so dependent on a salary this size when I'm not confident on how long it will last. I have been keeping a budget for the past year, and have been (generally) pretty much on target with what I planned for. But now, I think I need to re-assess my planning.
With the path that I have laid out, I will have saved/invested/donated 14,400 dollars this year. NICE! But if i'm aiming to live on 45k, where is the rest of my salary going?
I calculated my fixed expenses for the year (student loan payments, car, insurance, rent, phone) and I need 28,880 a year to cover fixed expenses. Sooo...
14,400 savings
-28,800 fixed
43,280 total
60,000
-43,280
16,720 yearly unaccounted for - or biweekly - 696 dollars.
So that means, in an average year, I will spend quite a bit on food, eating out, shopping and other needs. WHAT THE HELL??? Where is that money going? Seriously, straight into my stomach, it looks like. That is horrific. And one would think I was about 400lbs with this kind of eating budget.
No more. I need to get a handle on this. Lets review my "categories" of splurge.
clothes:
Okay, yes. I am a girl. I enjoy clothes. And shoes. And underware. And getting my hair done. I love a sale and can't say no to a good shopping trip. I have gotten substantially better since moving in with BF, but still. Not good enough! I just read Dave Bruno's 100 Thing Challenge, and it was really interesting. I don't pretend to want to do that, but I could apply a TON of his principals to my own life.
grocery shopping:
Now, BF and I split the grocery bill, but right now my personal half is 180 every two weeks. INSANE I tell you. I would think I would be having caviar every night. But the source of the drain is really simple: booze. I love good wine and good cheese. Neither of those are cheap, nor really good for me. I would be doing much better not to be buying that stuff all the time, health and budget wise. Another source of splurging..distracted shopping. The "oh that looks good" while on the phone and doing other things I'm SURE adds up.
dining out:
BF and I love to go out to eat. Sushi, especially or really good deli stuff. Again, not easy on the budget.
other:
What IS this category with no consequences? From now on, I'm tracking everything that I put into the "other" and maybe need a justification. I think I have been abusing this quite a bit.
With the BF gone, this is my chance to really regain some self control over my spending. (He is actually a really good spending influence, but I think my big short fall areas are ones that I create on my own). I think I can probably take some very simple steps to regain my control of my spending, all of things which I would tell anyone else who I was talking to about budgeting. They are:
- Delete my clothes budget. I have a ton of clothes and shoes - updating is not really anything I need to be doing right now. Move that money into my savings, and then if I REALLY feel the need to shop, I can move the money around.
- Meal plan. One big shopping trip each week to determine what I need and want, and then MAKE it, which will keep the last minute substitutions to a minimum.
- Purchase one big bottle of wine for the week. Including weekend. More water, tea, less wine. (This will be the toughest)
So, with the new numbers moved around in my budget to reflect these plans, my new savings is right under 20k, and my biweekly mess around money is 514 dollars.
That, my friends, is a MUCH better number. New goals in place!
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