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 like this one 😉).
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💰 Income
Monthly Gross Income: $15,917
Monthly Net Income: $8,284 (net of withholding taxes, health insurance, FSA contribution, life insurance, IRA and pension contribution, all deducted through employer)
Dependents: 1 child
🏡 Monthly Fixed Expenses
Mortgage: $3,043
Utilities (Electricity, Water, Gas): ~$150
Internet: $90
Public Transportation: ~$30
Health Insurance: $593 (Self plus 1)
Car Insurance: $183
Pet Insurance: $31
Debt: $430 (zero-interest credit card financing payment)
Streaming Services and Software Subscriptions: ~$125 (Spotify, Google Workspace, Apple iCloud, HBO, NYT)
Cell Phone: $0 (never got off my parent’s family plan :D)
🛒 Monthly Variable Expenses
Groceries: $400
Eating Out (Restaurants, Bars): $250
Entertainment (Movies, Events, Hobbies): $50
Clothing: $100
Personal Care: $150
💸 Monthly Savings and Investments
Emergency Fund Contributions: $830
Retirement Savings:
$366 (401k)
$366 (employer matching)
🎁 Monthly Miscellaneous
Childcare: $2,400 (expected starting February 2025)
Pet Care: $700 annually (~$60 monthly)
Online Workout Subscription: $16
Vitamins: $40
⚖️ Final Balance
Total income: $8,284
Total expenses: $7,450
Final balance: $830
💭 Money Reflections
1. How much does tracking your personal finances influence your spending, saving, and investing habits?
A lot. I do my finances once a month to make sure I understand what I am spending my money on. I also recently had a baby, so that changes a lot of my consumption and saving patterns.
2. Is there anything you wish you would spend less money on?
Sometimes, I still feel a bit guilty for spending on items my parents would consider too expensive or 'luxurious.' But to me, these are high-quality purchases that allow me to enjoy the money I’ve worked hard for. I think it’s a natural result of growing up in a household where my parents were reluctant to spend.
3. What do you consider important to spend money on?
High-quality food and goods (organic, non-toxic, natural, environmentally friendly).
4. Do you have any short-term or long-term financial goals?
Long-term, the dream would be to be self-employed and not tied to a work schedule!
5. Are there any specific saving or investment strategies you follow?
Auto saving and financial tracking in a spreadsheet once a month. As long as I’m aware of my budget, I try not to worry about money for the rest of the month. Also, I try not to react emotionally to swings in the stock market.
6. What was your relationship with money like growing up? Did you talk about it with your parents/caregivers?
Growing up, we didn't have a lot of money, so I learned early on to save and be mindful of my spending. Starting in college, aside from tuition and board, my parents provided little financial support. For a long time, I had a negative view of money, believing it was wrong to have too much or spend on 'expensive' things. But over the years, I’ve come to understand that money is a tool, and it’s okay to spend on things that bring me joy.
No, I didn’t talk much about money with my parents growing up.
7. Did you receive any formal or informal financial education growing up? If yes, where did you learn to manage your personal finances?
My undergrad is in economics, and I have a PhD in Finance.
8. Do you feel well-versed in personal finance? What resources have you used to educate yourself?
Yes.
My learning process was mostly through trial and error. To be honest, in today’s world, I’d recommend using ChatGPT! It’s much easier to learn when you can ask all your questions and have an interactive conversation. Then, if you’re planning to apply what you’ve learned, it's always a good idea to verify the information before moving forward.
9. What advice about money would you give to your younger self?
Don’t sweat the small purchases, but be mindful of your overall budget. Your time and energy are too valuable to spend constantly worrying about money.
