Part I: What I Cut
When other people write about stuff like this, to be honest my eyes glaze over. It’s your budget, why do I care? I think. But I realize that occasionally as bloggers with a take on personal finance, we have to look at our budgets. It’s a way of keeping ourselves honest.
I’ve famously said that you should give yourself a few months to get into your budget, not as a way to procrastinate but as a way to be realistic and fair to yourself.
Now I moved about three months ago into my new place which meant, among other things, a new budget. While I’ve worked hard to keep costs low, living on your own is inherently more expensive. So it’s been a balance for me between keeping costs low and stepping up work outside of my 8 to 5 weekday job. Part One of this (today) is about my cuts. Part Two will be about stepping up my extra curricular jobs (this will run Thursday, since tomorrow is Too Cute Tuesday and Wednesday is my Writer’s Series).
New Budget (Final Draft—Three Months In The Making)
Needs (First Draft Budget: $790, Now: $735)
$500 rent (includes heat, gas for stove, and electricity)
$50 gas for car
$100 food
$55 car and renters insurance
$30 car repairs
_____
50% of my primary income
Wants (First Draft Budget: $453, Now $402)
$55 cell phone
$35 internet
$50 my dog Sadie
$100 gifts
$50 clothes/personal care
$37 Y membership
$75 entertainment
_____
29% of my primary income
21% of primary income into retirement and savings
So a few dollars saved a month. Big deal right? Well folks every little bit helps!
How I cut down on my needs:
I have a new commuting buddy. I’ve cut down on fuel costs by giving someone a ride into Ellsworth everyday. My commute is now mostly paid for with the gas money she gives me plus she regales me with interesting stories of her life. (G’s a hoot!) I am still keeping a flyer up at the laundromat though because I could fit another person in my car easily (and in case commute buddy doesn’t stick around the area).
I’ve cut way down on laundry. Since when does it cost $2 to wash a load of clothes? I’ve went from two loads of laundry a week to two loads a month. I have a lot of clothes so this development just means everything in my wardrobe gets into the rotation (excluding ball gowns, of course). To get through, I sometimes do a little handwashing once a week. And once a month, I lug my clothes to a friend’s house and use their washer. So I took laundry right out of my budget!
I previously renegotiated my car insurance and got a further discount by paying for the whole year ahead. Glad I took the time to do that last month because an extra $15 is still an extra $15, right?
How I cut down on my wants:
I watch my cell phone useage like a hawk. Initially, I fell into that cell phone trap where I used too many minutes the first month and got a huge bill. Ouch, but lesson learned. Now I monitor my use on my carrier’s website and stay within my monthly minutes.
I am putting aside less money for my dog. Sadie is actually doing really well despite the fact she’ll turn 15 this year. I have some friends who are really great at helping me out with her care, meaning I don’t have to pay someone to let her out at night when I have to work late. These same friends also used to be vet techs and/or also have dogs themselves so I can talk to them about issues she’s having rather then hauling her into the vet when she has a little something wrong.
Socializing is now done at friends’ houses or at the gym. Not a lot of nights out for drinks or seeing the newest movies for me but good company and a chance to leave my little house is fine with me.
The biggest change to my situation, however, is I now have about 50% more additional income coming in. How am I managing that? That’s for Thursday my friends!
Meanwhile have you been fine tuning your budget lately?