Good morning, Thriftaholics! Welcome to the first installment of our monthly budget breakdown. I’ve never shared our monthly budget details before but was inspired to do so after sharing my monthly income for the first time in June. In case you missed that post, you can read it here:
From now on, I’ll be sharing a monthly cash money income update as well as my monthly budget details for all of the world to see. Isn’t that exciting? Of course it is!
So, before we get started, I thought I would share a little background on were we are financially at this point. First, of all, I quit my job in May in order to pursue blogging and freelance writing full-time. If you want to read more about how and why I quit my job, you can read about it here. In addition to my career change, Greg decided to leave his job in the funeral industry and start a career in life insurance and investments. He just started training for his new job last week so we’re in somewhat of a transitional period at the moment. Since his new job is 100 percent commission, we’re not really sure how much money he’s going to make. Therefore, we’ve decided to go a little light on our spending. In addition to being on FALL FINANCIAL LOCKDOWN, we’re only paying the minimum toward our mortgage and children’s college funds. Once Greg starts earning an income, we plan on upping our mortgage payments and contributions to our children’s 529 accounts accordingly.
August 2013 Budget Breakdown
In case you didn’t know, we use a zero sum budget to track our spending and keep track of our monthly bills. And since I became self-employed, I just write myself a check (out of my business account) for the amount of money that I need to meet our monthly expenses. Exciting stuff, huh? Anyway, here is our monthly budget for August:
- Mortgage: $1426
- Electric: $175
- Gas Bill: $25
- Groceries: $500
- Daycare ($125 per week): $625
- Internet: $35
- College Lydia: $25
- College Vivian: $25
- Gas/Misc: $200
- Credit card rollover: $100
- Cell phone (Greg): $55
- Life Insurance (Greg): $86.25
Since Greg has been off work for a month or so, we bought a temporary health insurance policy until his new policy kicks in. We think we can get our family enrolled to start the new plan on September 1st, but we’re not sure yet. So, there’s a possibility that we’ll have to purchase another month of coverage for an additional $377. I should find out this week.
Other Things About our Budget
You probably noticed that I’m not currently saving for retirement in my monthly budget. No worries, I’m still saving for retirement! Since Greg switched jobs and will soon be selling life insurance and investments, I’ll obviously be moving all of my financial stuff over to him. I’ve got the $5,500 ready to plop down in my Roth IRA and I’m just waiting for him to finish getting licensed so that I can do it. I also plan on transferring my old 401K and likely setting up a new SEP-IRA to contribute to. Like I said, I’m just waiting on my man to get licensed to do all of those things. Fortunately, it’s only going to take a few more weeks.
More Riveting Budget Details
Since some of my bills are paid quarterly or biannually, I just pay those bills on the month they are due. For instance, this month Greg’s life insurance is due. Next month, my life insurance and our trash bill is due. I just paid our car insurance bill in July so we don’t have to pay it again until January.
You probably noticed that I don’t have a cell phone bill right now. Thanks to a recent promotion with Republic Wireless, I’ve been able to accumulate a lot of credit in my account for the coming months. I’m not sure when I’ll have a cell phone bill again, but it’s going to be a long, long time. If you’re interested in getting an inexpensive smartphone, read my review of Republic Wireless here. Better yet, use my referral link and sign up for Republic Wireless today!
So, do you have any questions about our monthly budget breakdown? How does my budget compare to yours?