At the end of every month I check bank & retirement accounts and update my financial records. I have an EXCEL spreadsheet to keep track of savings, so it motivates me to see how the savings add up a little by little. I also have another EXCEL spreadsheet to track monthly expenses. Because I was trying to live on 50% of the income, I was looking forward to seeing the final figures on the spreadsheets.
First, the good news. My total monthly expenses in October came to 48.5% of my income! 💃💃💃
I was a little off in some categories. For example, my electric bill was $15 over the budgeted amount, and the grocery bill was also over by $21. But I didn't spend the budgeted amounts for water, vitamins and 'other' categories, so the total is still under 50%.
The not so good news is that my internet bill is going up by $25. I called the provider to see if they can lower the price, but they didn't give me any discounts. So maintaining expenses at 50% is going to be difficult.
So, I asked myself, am I going to continue living at 50% of the income? I looked at all my expenses this month. Though I didn't feel deprived, while I was at the store I really had to keep in mind how much I had left for groceries. Because I used my credit card, it was a bit difficult. If I had cash it would have been easier to track. I was a bit more disciplined; I wanted to buy Hungarian paprika for a recipe and decided not to because I have a cupboard full of all sorts of spices and I didn't need another bottle of paprika. Without the 50% challenge, I would have bought it. But then I splurged on organic ice cream and fresh oysters, so not too disciplined. Ha!
Everything I saved went to different savings and retirement accounts, and donations. I also paid extra $250 toward the principal of my mortgage. So living on 50% made it easier to meet the saving targets. Now I know I can tighten the budget and live on half the income I have need to, because I was actually able to do it. But I think it is more realistic to have a 55-60% range, so I have a little more freedom. This will allow any increases in bills such as internet.
This challenge really made me look at my expenses very carefully. I will continue to be frugal so I can pay off the mortgage as soon as possible.
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Nil
This challenge really made me look at my expenses very carefully. I will continue to be frugal so I can pay off the mortgage as soon as possible.
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Nil
That's fantastic! I am so impressed with your financial discipline and tracking. Congratulations, Nil.
ReplyDeleteWay to go Nil 🎉🍷🎈. That is great. It sounds like you are being very mindful of your spending (as opposed to disciplined or not.) That can be a difficult habit to develop but you rock!
ReplyDeleteWell you know you can certainly do it if you have to which is good. You’ve done so well and should be proud of your commitment. 55-60% sounds perfect as it will give you that little more freedom however can still save.
ReplyDeleteKylie
Love that you splurged on oysters and ice cream! While it's good to watch your spending, stick to a budget and save, it's good to have some fun with your money too, after all,you work hard for it. Your new plan to be flexible to 60% will allow you plenty more oystets :)
ReplyDeleteGood on you, Nil. Well done. Our house was paid off in a couple of years back in the 1970s as we used to save in order to pay extra lump sums off our mortgage.
ReplyDeleteYour commitment to saving and paying off your mortgage is great, Nil. Knowing you can do a 50% challenge when you need to is wonderful also, there might be the odd month in the year when that would be of benefit even with your new 60% goal. Well done to you! Meg:)
ReplyDeleteCongratulations on coming in under 50 percent! Yay! If you go to 55-60 percent, that's still mighty admirable considering a lot of us live on 105 percent of our income. That's how so many of us ran up debt! It took decades to figure it out, but Dear Husband and I are finally living WITHIN our means. I truly admire you, Nil, and I thank you for your inspiration!
ReplyDeleteThat's brilliant, you have proved you can do it, keep at it, the results will speak for themselves xx
ReplyDeleteThank you all. XX
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