Our budgets, ourselves
February 27, 2008 by wellheeled
After being inspired by this early retirement extraordinaire, I decided to take a closer look at my budget to see if there is an area I can cut or trim.
I operate on a $2,000/month budget - it’s a pretty good plan for ME. (I’ve followed it fairly well since the beginning of this year). A $2,500 budget would be very comfortable, a $3,000 budget would feel (and is) positively decadent. A $1,500 budget would be very, very tight - tight enough to make me throw my hands up and chuck the budget to the side because I’d be setting myself up for failure.
| Fixed | Per Month | Per Year | Comments |
| Rent/Internet | $735.00 | $8,820.00 | Yay for roommates! |
| College Loan | $160.00 | $1,920.00 | 0% interest loan |
| Car Insurance | $125.00 | $1,500.00 | Monthly installments from $118-$123 |
| Prescription | $25.00 | $300.00 | No generic available |
| Irregular | Per Month | Per Year | Comments |
| Medical co-pay | $25.00 | $300.00 | Doctor visits, medication co-pays |
| School Donation | $2.50 | $30.00 | Alumni Fund – will increase next year |
| Gifts | $15.00 | $180.00 | We don’t exchange gifts in family |
| Car Repairs/Fees | $85.00 | $1,020.00 | Reliable old car w/ 200K+ miles |
| Vacation | $160.00 | $1,920.00 | May have to visit family overseas |
| Massages | $40.00 | $480.00 | $80 a pop – but oh so worth it |
| Computer | $77.50 | $930.00 | May replace 5-year-old laptop |
| Education | $35.00 | $420.00 | Memberships/dues/classes |
| Variable | Per Month | Per Year | Comments |
| Utilities | $30.00 | $360.00 | Electricity only |
| Gas/Parking | $150.00 | $1,800.00 | $4/gallon gas coming? Bah humbag! |
| Groceries | $110.00 | $1,320.00 | One-stop-shop at Trader Joe’s |
| Eating Out | $100.00 | $1,200.00 | Restaurants, fast-food, & Starbucks |
| Shopping | $25.00 | $300.00 | Clothes, cosmetics, books, etc. |
| Entertainment | $50.00 | $600.00 | Movies, theme parks, museums, etc. |
| Household | $5.00 | $60.00 | Furnishings & cleaning supplies |
| Laundry | $5.00 | $60.00 | No units in apartment |
| Miscellaneous | $40.00 | $480.00 | Everything else |
| Total Budget | $2,000.00 | $24,000.00 |
It looks very reasonable to me, but maybe I’m not seeing something. Let me know what you think - are there any areas that I should reconsider? (I’m inclined to leave it as is.. but that why I’m asking for your opinions!)
Good job not having cable! It’s so expensive, i can’t imagine paying $600/year+ just to watch tv. Cutting out TV more than pays for your massages.
Also, good job on holding off 5 years to replace your laptop. I admit I’m saving up to replace my desktop that’s only 3 years old, but that is partly due to my line of work (and other valid excuses as well).
I don’t calculate explicit budgets, but I looked at my last three months of expenses and it averaged out to $2270/month, and I’m also a CA native, I’m guessing we live in comparable areas based off of previous posts. Maybe my short term goal will try and get my monthly spending down to $2000 as well, it’s a nice round number. Also, I could use that extra money to put towards a down payment as well as a car.
You only spend $5/mo on laundry? That’s dirt ass cheap, especially if you’re doing coin-op. I think I figured I averaged between $15-$20/mo when I had coin-op. So it was worth a bit extra in rent for the convenience of having it in house. Everything else seems pretty reasonable.
You can do all your laundry for $5/mo? I don’t think I can!
If I had $2000/mo, I would die just because of rent! Sometimes it makes me wish I’d have gotten a roommate or two, but… It’s such a trade off for me. Privacy, my own space, or 700/mo…. When I put it that way….
Everything looks really reasonable–sticking to $25 for shopping is awesome!
I noticed the same thing as everybody else–laundry. I averaged $5-$8 a WEEK when I rented. At $1.25 a wash, and $1.50 a load to dry, it adds up pretty fast. You may want to re-look at that line.
Otherwise, really very liveable. You’ll do fine.
Good Luck!
I hand-wash alot of my clothes - or I dry clean (which goes into the Misc. section). I also do laundry at home or at my bf’s. So… the $5 really isn’t all that big of an accomplishment.
Re:SJean
Yeah, the privacy thing is a tough one, the trick of putting something into a yearly dollar amount really helps me.
If it’s $700/month you’re saving, would you rather have a roommate or $8400/year. There probably reaches an income level where it makes sense for each individual, but I’m not sure what it would be for me. $8400 is past halfway to my new car!
Ah tricky, cheating on the laundry…. So can you tell me more about handwashing? Can you handwash anything? How does it work??
Sorry, I’m a bit dense when it comes to the susie homemaker stuff.
SJean - I just handwash things that says delicate or some things that might say “dry-clean only” like wool & fine knits. Honestly, I don’t know if I’m doing it right, but my clothes still fits.. so.. :). Oh, and I only dry clean pants & suits.
Regarding the roommate situation, I’m only a year out of school, so it’s natural for me to live with people. And I think I’d get too lonely to live by myself at this point.
I think this is a good budget. I’m living on a bit less than you (about $20K per year), and it’s so tight that sometimes I flip out and spend a lot of money on frivolous things. It’s DEFINITELY a burden, so if what you’re doing allows you to save a lot and you don’t feel *too* pinched, you’re in great shape.
I usually spend about 80/month on groceries. You could probably cut back a bit there especially if you have a dining out budget. Usually when I eat out, I always have leftovers and that saves one lunch day of needing supplies.
Otherwise, it looks good to me.
oops-one more thing, you pay for your medical every month after taxes? That seems expensive, although mine is taken out pre-tax, so I don’t count that in my budget.
Do you tip on the massage? I thought you were supposed to give like a $20 tip on an $80 massage, one of the reasons I haven’t had one in years…
Mmm. Massage….
This looks pretty sensible to me–though the grocery number looks a little low. And man, it’s expensive having a car!
Whoa…. this is excel crazy! So intense.
Looking at this, it makes me want to get my life in order
I’m inspired!
I have my budget broken down in a similar way, but now I want to post it.
Like everyone else, I’m jealous of your laundry expenses–I spend about $20 a month, but because I hoard quarters, I only budget $10/month…the rest of it I can usually come up with in my coin jar.
dogatemyfinances:
A $20/tip on a massage is waaaaaayyy too much. I usually give $4 or $5. Maybe I’m skimping, but after paying $60-$80 for a massage, it seems ridiculous to cough up a huge tip.
Wanda — are there any places called Massage Envy or Massage Harmony where you live? They’re these new places that have sprouted up all over Texas, and perhaps elsewhere…it’s basically a massage chain store. You pay only $30- or $40-something for a massage, but the catch is you have to have a membership, which binds you to buying at least one massage a month. But you get deeply discounted massages, and while some massages are better than others, I’ve never actually had a bad massage. Something to look into!
Peachy: I’m afraid $80 on groceries is setting myself up for failure…
English Major: You know, I never really sat down and figured how much money operating a car costs. In my town you need a car to go anywhere.. so not having one is really not an option.
Strangebird: I think $20K a year would make me flip out ocassionally as well. And knowing what area you live in… you are my hero!
so24: Thanks for stopping by! I hope this blog isn’t too boring for you…
Dog Ate My Finances: The $80 includes tip. I may have a budget but I’d never skimp the woman who makes my back feel so good!
Emily: I go to this massage therapist at a chiropractor’s office. I know I can get a massage for cheaper but with her, I get consistently great massages. So… I don’t want to switch.
Good job and thanks for sharing.
Did someone say that medical payments were expensive?! I pay $150/month in private medical premiums through work, my employer pays the other $150/month. Ouch hey.
My only observation was that $25 for shopping might be low. If that means clothes, for instance, you wouldn’t be able to buy much. But I think I remember you saying you have a lot of clothes, in which case it would be okay. But otherwise $25 is like, what, a shirt?
Looks fine. Also, just curious, the computer and vacation parts, those must be whisked away into a savings account?
Your blog is completely inspiring! Thanks for all the great info. One question though - what widget are you using for your Save-O-Meter?? I am starting a blog on wordpress and love that thing!
Thanks so much!
What stood out to me was the shopping budget. That $25 won’t get you very far… maybe a t-shirt or a couple of tubes of drug store makeup. What do you do if you need new shoes, a new jacket, a new dress for a fancy event or a new pair of jeans? If you ever use department store makeup, just running out of foundation will put you over your budget for the month.
Same deal on the gift budget - that may be enough for your ‘regular’ events (birthdays, mostly) but what will you do for weddings, baby showers, etc.? If none of your friends are engaged yet, this may seem far off to you, but trust me, at some point in you mid to late 20s it will seem like everyone you know has something like this coming up.
I think you’re doing great, but if you’re looking for ways to cut back, I’ve got some suggestions.
First, shop around for the things you’re buying. You might find car insurance, parking, massages, or plane tickets somewhere cheaper.
Second, prepare more meals at home and/or bring your lunch to school/work to save on eating out. Bringing the grocery budget up a little will bring the eating out budget down a lot.
Third, look for cheaper entertainment options. Picnics in the park, board games, books from the library, free public events or museums, etc.
I hope that helps.
I created a budget just like this a couple of months ago, and I applaud you for including massages in there! I also included massage as a category because they are indeed $$$, but worth it (especially because I’m an athlete). I don’t get them as often because of the price, but I know it would be beneficial to cut something out of my budget to be able to go every other month or so.
Anyway, one thing that I discovered was eating up a chunk of money is my hair. I tallied up how many times I got my hair cut and highlighted last year — not many, and the total cost came to $530 with tips! This is for four haircuts and three highlights, at not even very expensive salons and when I was trying to go a long time between each salon visit. This also doesn’t include hair products — on which I don’t always buy the drugstore versions, but I do wait until I can get a deal (a Redken buy two get two free special was the last one!) and then stock up. I have thin hair that is very hard to make look nice, so basically my philosophy was to do as much as I could to make it look good…
So…I hope I don’t sound like a snob here. Most girls I know spend WAY more than this on their hair. What do you think? Thanks!
[...] I’m increasing my $2,000/month budget by $100 to $200 a month - eating out with friends, going on day trips (and vacations) and buying [...]