The Budget Breakdown aims to broaden the conversation on money and offer insights into various approaches to spending, saving, and investing.

✨ Want to share your monthly budget breakdown with us? Please fill out this form here and we will get back to you (can be posted anonymously 😉).

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💰 Income

Monthly Gross Income: $16,348.22 (Husband and I combined income)

Monthly Net Income: $11,550.46 (Husband and I combined income)

🏡 Monthly Fixed Expenses

Mortgage: $2,878.00 ; $500.00 (principle only)

Utilities (Electricity, Water, Gas): $366.00 (varies due to the electricity varying from month to month)

Internet: $55.00

Car fuel $300.00

Health Insurance: $387.98 (for the whole family)

Car Insurance: $127.00 (we paid off my husband’s car insurance for the year through his business)

Life Insurance: $143.00 (for the whole family)

Debt: $0.00 (No debt, except for the mortgage for our home. Paid off $80,000 worth of debt in 2021)

Software subscriptions: $16.00

Cell phone: $600.00 for the year (this is how we pay it through my husband’s business, so technically, it's free due to a write-off)

🛒 Monthly Variable Expenses

Groceries: $600.00

Eating Out (Restaurants, Bars): $200.00

Entertainment (Movies, Events, Hobbies): $200.00

Clothing: $200.00

Personal Care: $375.00 (Play money for my husband and I)

Travel: $500.00 (Vacations), $166.00 (Weekend or Visiting Family Trips)

💸 Monthly Savings and Investments

Emergency Fund Contributions: $0.00 (we have $32,400.00 in our HYSA for our emergency fund)

Retirement Savings: $1,166.00 (IRA/Roth IRA)

Investments: $533.50 (Stocks), $350.50 (Index Funds)

Add more money to stocks and index funds if we have money left over for the month.

🎁 Monthly Miscellaneous

Gifts and Donations: $50.00 (We also have a sinking fund of $1,000.00 to give to others who are in need or if we want to buy a person a gift randomly, etc.)

Health and Wellness: $60.00 (Therapy)

⚖️ Final Balance

Total income: $11,550.46

Total expenses: $8,723.98

Final balance: $2,326.48 (whatever is left over is split between investments, eating out, and sinking funds)

💭 Money Reflections

1. How much does tracking your personal finances influence your spending, saving, and investing habits?

Tracking our personal finances has a profound impact on our spending, saving, and investing habits. When my husband and I actively monitor our finances, it influences us to spend more wisely, invest consistently, and save adequately, helping us stay on track with our financial goals.

However, when we neglect to track our expenses, we tend to spend more carelessly, invest less, and save less, which ultimately hinders our progress towards achieving our financial objectives within our desired timeframe.

Additionally, open communication about our finances is crucial; without it, we find ourselves spending more impulsively. Therefore, both meticulous tracking and regular communication are essential to our financial success.

2. Is there anything you wish you would spend less money on?

I wish we could spend less money on eating out. Although there's nothing wrong with enjoying great food, my husband and I tend to spend the most money when we get lazy with cooking. To make cooking at home more motivating, I've created themed nights for each day we eat at home. For example, Monday is Meatless Monday, Tuesday is Taco Tuesday, and Wednesday is We Grill Wednesday.

Making it fun has allowed me to be creative with our meals and encouraged us to try new dishes. Pinterest has been an invaluable resource for finding inspiration and recipes. This approach not only helps us save money but also makes cooking at home an enjoyable experience.

3. What do you consider important to spend money on?

I consider it important to spend money on experiences, health, and personal care. Being financially prudent has opened up opportunities we never imagined.

For instance, this year, I've been able to receive the best care for my health, leading to weight loss and improved well-being. Traveling has been prioritized, allowing my husband and I to explore new places at least twice a year; this year, we are excited to spend three weeks in Europe. Additionally, I have been investing in my mental health, which is crucial in today's world. Lastly, I have been getting facials on a monthly basis, which is a nice way to regroup.

These investments not only enrich my life but also ensure my overall well-being and happiness.

4. Do you have any short-term or long-term financial goals?

Yes, I have both short-term and long-term financial goals. In the short term, I aim to have at least $50,000 invested in stocks by the end of 2024 and for us to pay down at least $50,000 on our house by the end of 2025.

Long-term goals include paying off our house completely, building our investments to at least $800,000 within the next five years or sooner, and purchasing our first rental property. These goals help us stay focused and motivated, ensuring that we make strategic financial decisions that contribute to our future financial stability and growth.

5. Are there any specific saving or investment strategies you follow?

Yes, I follow specific saving and investment strategies. For my retirement accounts, I invest in index funds, adopting a "set it and forget it" approach to ensure steady growth over time. In my brokerage accounts, I maintain both a buy-and-hold portfolio and an options trading portfolio. I use the gains from options trading to fund my buy-and-hold investments, allowing me to build a strong, long-term portfolio while also taking advantage of short-term trading opportunities. This balanced approach helps me manage risk while maximizing potential returns.

6. What was your relationship with money like growing up? Did you talk about it with your parents/caregivers?

Growing up, my relationship with money was not good. While I learned that saving was important from what I saw from my mother, I never learned how to properly view and manage money. My mom and I never spoke about money, and as a single parent, she didn't teach me about investing, real estate, or other financial strategies because she herself hadn't learned those lessons.

I remember a time when she was doing well with money, but as she spent more time with people who had poor financial habits, her spending increased, she stopped saving, and she ended up living paycheck to paycheck despite having a good income.

It wasn't until I got older and started dating my husband that I began to see money differently, thanks to the resources he provided. This experience taught me that succeeding with money requires the right associations, whether through books, TV, or the people around you. It also showed me that it's never too late to become successful with money; it all depends on how badly you want it.

7. Did you receive any formal or informal financial education growing up? If yes, where did you learn to manage your personal finances?

When I went back to college two years ago, my degree required two finance classes, which provided some formal financial education. Before that, I relied on Dave Ramsey's teachings to learn the basics. His guidance helped my husband and me get out of $80,000 worth of debt in just 1 year and 8 months, beating our goal of two years. As my financial knowledge grew, I started seeking insights from other experts to enhance my understanding of investing.

8. Do you feel well-versed in personal finance? What resources have you used to educate yourself?

I feel like I am getting there. The more I read and learn, the better I become. I love reading books about finance, such as "Rich Dad Poor Dad" by Robert Kiyosaki, which helped me understand the difference between investments and liabilities. Another great book is "The Millionaire Next Door" by Thomas J. Stanley, which provides insight into the psychology behind money and why some people are financially successful while others are not.

Currently, I am reading "The 30-Day Money Cleanse" by Ashley Feinstein Gerstley, which is quite insightful and reinforces the basics of personal finance. YouTube is pretty awesome regarding finances as well. By continuously educating myself through these resources, I am steadily improving my financial knowledge and skills.

💡 Ask the community

What aspect of personal finance have you always wanted more guidance on? If you have successfully achieved that aspect, how did you do it?