Budget for Better Living 2018


The spreadsheet says I am saving!
With the new year came a new budget.  I base my budget on 2 paychecks a month.  My current employer pays biweekly so I get a bonus 2 paychecks a year that go directly to savings.  This works in my favor not only because of those bonus paychecks but because it is helping me learn to live on less than I make.  That is always the way to a better life.  Live on less.

So what did I change in the budget?


2018.1 Budget

Category
Change
Notes 
Housing/
Insurance
$0
Still paying extra principle. 9 years to go
Investments
$0
Still maxing out 401k and IRAs
Utilities
-$110
Cell phone plan change
Transportation
$109
Cars are getting older so setting aside more cash
Education
$70
New category to save monthly for school fees when the kids start school.
Travel
$17
No travel plans yet but still saving
Gifts/Charity
-$25
That is on the gift side, still giving
Home Maintenance/
Supplies
-$161
Less mulch/more hardscape
Food
-$100
Less frozen/more homemade food
Less eating out
Less junk food
Healthcare
-$175
Budget was too high, based new on my average monthly spend
Shopping
$150
Most of the budget is for clothing for the ever growing children.  We still buy all clothing from clearance racks except for socks, etc.
Personal Care
$55
Now include toiletries in this part of the budget
Kids
-$50
Only buying diapers/no more baby food.  This category will probably go away soon!
Everything Else
$50
This is a new catch all for things like blog expenses and  broker/bank fees, etc.

Based on the new budget I will have a whopping $52 left over each month to put into my brokerage account.  I also keep a buffer in my checking account for bills that are quarterly and have separate savings accounts for travel and gifting.  If I go above the buffer threshold that money would also be transferred to my brokerage.

Taking into account only 2 paychecks a month and the new budget the DFG savings rate is forecasted to be 34% a month.  Not too bad and pretty much the same as last year.   Like I mentioned in my year end summary that rate won't get me to freedom until I am old and grey.  The goal was always to retire from the cubicle by 55.  More drastic changes are needed at the DFG household (and are in the works).

Do budgets really matter if your goal is to spend as little as possible each month?

For me they do.  I enjoy crunching the numbers and see how we are progressing to financial independence.  It also gives me a tool for talking about money with my spouse and kids.  While the conversations aren't always easy they are necessary for a good marriage and will teach my kids how to achieve what they want in life by saving a little dough.

What do you think about budgets?

Peace,
Dividend Family Guy

Comments

  1. dividendgeekFebruary 18, 2018 at 8:54 AM

    Question: In your Dividend page I don't see your 401(k) is that by choice? Are 401(k) and IRA contribution not treated as saving? Do you have an account with Robinhood? they provide free trades. You could invest $52 into a dividend paying ETF i.e. get diversification and dividends. I love budgets.

    ReplyDelete
    Replies
    1. Dividend Family GuyFebruary 24, 2018 at 1:41 PM

      I do need to include them (just haven't received any dividends yet from them.) I have my accounts with BoA and because of my balances I get 100 free trades a month! Thanks for stopping by DG

      Delete

Post a Comment

Popular posts from this blog

Will Dividends Teach My Kids to Work Hard?

After reading an article about education and learning from Mr. Money Mustache last week I starting thinking about my kids and their upbringing vs. how I was raised.  There was lots of discipline but also a tremendous amount of freedom.  That combined with loving parents taught me many lessons in life that I believe have led me to a great career and the joy of raising a large family.  The one thing that worries me the most is a fear that my children do not value gifts or money they receive as much as I did as a child. As a child I remember talking with my sister days before my birthday.  We share the same birthday one year apart.  We would spend the time talking excitedly about what we might get for our birthday.  Gifts were usually only on birthdays or major holidays.  Easter baskets filled with candy, or presents on Christmas or birthdays. Growing up with one TV that didn’t get the best reception left us with plenty of time to day drea...
Read more

What to write about when you have no money to invest?

Image
Without any money to invest from January all I could do is screen and learn about some new stocks that came up this month.  It is my hope still to save enough where I can actually invest on a regular basis again.  Part of me wants to start using loyal3 or computershare.com .  Buy for free and sell for free on Loyal3 or for a fee on Computershare.  That way I can continue to invest in some of the strong dividend payers these companies allow you to buy.  The other part wants simplicity and is willing to pay the fee to keep all my money in one place with one tax document.   The third part just reminded me my goal is to first rebuild an emergency fund.  That part is such a downer and is no fun.  The fourth part is my wife who wants me to put any free money into home improvements.  I avoid that conversation at all costs.   The house will hold up and last longer than me.  My time is what I want not a nicer house. I cou...
Read more

The Cost of A Vacation for Six

Image
All investing and no fun can lead to a happy me but a not so happy family .  I am the only one who actually doesn't mind managing the finances and money matters in my family.  The kids are slowly learning and my wife leaves it to me since I use my computer and online services.  Both systems work but my system allows me to get things done faster and produce reports I enjoy studying. Here is the breakdown of our 7 night trip to the beach and a 2 day visit with my brother: Lodging $1,966 This was the largest expense.  We stayed at hotels during the trip there and while visiting my brother.  Luckily we have a relative that works at a major hotel chain and is able to pass a discount on to us.  The remainder of it which was the big chunk was the condo on the beach that we stayed at.   I found it as one of the deals on Kayak.com .  Overall the site was easy to use and compare different places.  Unfortunately I should have listened to ...
Read more

Investment Disclaimer

This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. If you have any questions please feel free to contact me at dividendfamilyguy at gmail dot com.