Setting New Goals [May 2014]
Category : Uncategorized
Is it just me, or is it June? That means it’s time for a monthly update on my finances from May.
May was a great month for dividend growth; however, I overspent my budget.
Dividend Income: $139.60
Percentage of expenses paid by dividend income: 14.1%
My budget for the month of May was $775, or exactly $25 per day. I went $213 over budget, AND I have an additional car expense that I’m going to amortize over the next 6 months. The car expense came to $300, and I did not apply any of it to this month’s expense.
Digging deeper, I found that I was way too liberal in my food spending habits this month. Groceries for the month came to about $150, slightly higher than normal, but that’s fine. What killed me was eating out: a couple trips to Qdoba, Bagger Daves, Atwater Brewery, and One Eyed Betty set me back $180. Other than that, I didn’t really go well over budget in any category. I did buy a new polo for $18, and I regret that purchase. Lastly, I spent an extra $100 during my European Trip. That put me over the edge. Since my budget is ultra-lean, I don’t have much room for unexpected splurging.
The painless solution to this would be to forecast that next month I’m going to spend $30 per day, and thus $900 during the month of June. That would be the easiest solution, that way I can still go out to eat a couple times during the month, and I can still make a relatively aggressive goal.
I didn’t get to where I am, nor will I get to where I want to be by taking the painless solution.
A couple new goals that will help me hit June’s goal of $750:
• Only spend $100 for the month on going out to eat. Groceries will remain at $150.
• Bike to work four times during the month of June, saving roughly $15 in gas.
A budget of $25 per day equates to an annual budget of $9000. It’s a tough goal to make, but even if I miss the budget every month, the effort I put in will pay dividends… literally.