We officially survived our second month in our new house. Our spending did decrease a bit from last month’s craziness – but definitely not as much as I was hoping for! I am still confident that our spending will drop further as we finish out the house and the expenses that go with it and just start to enjoy living here. If not…well, I’ll be forced to get another job to pay for everything I think!!!! Living frugally isn’t really happening right now – and at times financial independence seems further and further out of reach. I know that things will turn around, but I’m hopeful that it’s sooner rather than later!
This month’s income and expense categories are heavily revised compared to previous months – so take a look and let me know what you think. Thanks for stopping by, I look forward to your comments!
Job 1 +$768 – My annual raise was effective 7/1, which bumped my income up by a hefty amount for the month! I received an above average raise this year, so I’m definitely pleased with this increase in income. Unfortunately, this amount will decrease in September as health insurance premiums will start to be pulled out of my paycheck.
Job 2 +$0 – Still the same, but this is almost the end for Mrs AB’s regular income – at least at this level. She finished work at the beginning of August, so this category will go down pretty soon.
Interest -$9 – Since we keep spending money (mostly on the house) our interest income keeps going down…unfortunately. Hopefully we’ll start to build this up soon – but I’m not holding my breath for a huge increase.
Extra Income +$0 – Nothing to report again, but Mrs AB starts her teaching gig for the fall semester soon, so we should see something in an upcoming income and expense report. We did receive our security deposit back from our rental house – which was approximately $1,500 – but I didn’t think it made sense to include it here!
Mortgage -$245 – Alright, so here’s what I did. Our current principal and interest payment is $630/month. On top of that we have taxes, homeowner’s insurance, and HOA dues – which are annual expenses. For these, I just turned them into monthly expenses (you can see the breakdown here) which accounts for the other $625 of this category’s spend. That way, when I write my check for taxes, insurance, and HOA – I’ll have been accruing for it each month…perfect!
Utilities (Formerly “Home”) +$231 – Things are still changing here – first off, the name. I decided to change this to “utilities” – as that’s mainly what’s included here – electric, gas, water/sewer/trash, internet, lawn mowing, and then randomly – jewelry insurance. So I bundled it all together and that’s what you’ll see in this category going forward. I’m not sure what the correct spending amount will be here…but hopefully it will start to even out and come down from where it is now.
Household (Formerly “Groceries”) -$1,433 – On one hand, we spend almost $1,500 less this month…on the other hand – we still spent over $2,000 in this category!@#!#@ . It’s definitely not an apples to apples comparison though, as we’ve consolidated some additional categories into this new “household” category. It used to be the “grocery” category, but it ended up becoming a dumping ground for a lot of stuff. So from now on, this will be all our food, household items, entertainment, gifts, Netflix, splurges, electronics, etc. This includes all Wal-Mart, Sam’s Club, Costco, Kroger, Home Depot, Lowe’s, etc purchases that we make. I know I’m getting a little less granular on the detail, but I think it’ll be ok.
Cars +$718 – Car insurance sucks – mostly because it’s expensive! Also, our rate went up by about $200/year when we moved….yikes! I guess I need to start shopping around. I have Geico right now – any suggestions on other value priced options???
Gas -$114 – This is down a bit as we had more reimbursements this month, but it should really start to drop next month once Mrs AB is done with work. Soon I’ll stop driving as much too…hopefully – so that should bring it way down.
Eating Out -$80 – We were pretty busy and had a lot of family obligations during July. Because of that we spent more on groceries and ate at home/other family member’s houses instead of eating out.
Personal +$447 – We had some dental (OUCH!!!!) and pet expenses this month. I guess everyone needed their checkups at the same time!
Vacation +$0 – No vacations during July to report.
Misc -$236 – We added boat expenses to this category. I haven’t added the boat purchase price in anywhere though, and I think I’ll leave it out until I’m sure of what to do with it…I may just ignore it and hope it goes away J
Well, that’s it…I think. I’m still torn on what to do with the expense of purchasing the boat. Part of me thinks it just needs to be included in the expense section, and another part says it should be separate. I’d be really interested to hear your thoughts – so readers, let me know what you would do with this expense. It’s about $2k, so it will make a difference! Thanks for stopping by!
AB Around the Web
I’ve been featured in some pretty cool places around the web recently. I hope you’ll take some time to check some of these great sites out!