So, I’ve been gone for a few weeks. I will follow-up on why soon.
But before I do that, I wanted to follow-up about my budget for February 2014. It was a wacky month with a bunch of changes during the month.
Keep in mind one of my budgeting philosophies: “Even though this is what I have budgeted for February at the start of the month, I give myself the flexibility to move money from one budget category to another. What is budgeted at the end February is likely to be different.”
And different it was…
My Actual Income for February 2014 (Earned in January 2014)
I made two adjustments. One because I screwed up. I had an additional $204.58 in my HSA account that I simply missed.
The second adjustment was made because we sold some of our kids’ clothes in February. The wife and I wanted to go ahead and use that money for clothes in February. Since this is money coming in, I count it as income.
|His Income #1||The breadwinner. Accounts for more than 75% of our household income.||$2,284.09|
|His Income #2||My side hustle(s). Currently, just tutoring (didn’t earn any money in January). Hopefully, more side hustles to come!||$0.00|
|Her Income #1||The wife doesn’t have a full-time job. This is from her wedding planning part-time job.||$485.00|
|Her Income #2||She also watches two kids in the morning and afternoon.||$275.00|
|ESPP Income||Actually, in a convoluted way, comes from my primary income. I sell my ESPP stocks for more than $9,000 every 6 months. I “pay” myself $1,500 every month.||$1,500.00|
|Other Income||Interest, dividends, contributions to our HSA, all other income.|
|Total Income||Money, money, money…!!!|
My (Revised) Budgeted Expenses for February 2014
From the income listed above, this is how I have budgeted for my expenses.
|Charity||Really, just our tithes for now. Seems disproportionate to our take-home income but is 10% of our gross.|
|Child Care||Day care (mostly; day care is expensive!), baby/toddler supplies (small portion of budget).|
|Gifts||Birthdays, Christmas, etc. (Umm, Valentine’s Day… oops, forgot about this!)||$0.00||0.0%|
|Health & Fitness||Medicines, prescriptions, office visits, gym memberships.|
|Housing||Mortgage, insurance, pest control, maintenance, repairs.|
|Miscellaneous||Ah, the miscellaneous bucket. Includes allowance for the kids and “his and hers” spending cash.|
|Personal||Clothing, hair care, financial planning, life insurance, taxes, organizational dues.|
|Recreation||General entertainment, birthday parties, kid’s activities, vacation.|
|Savings||College, emergency fund, retirement… above and beyond automatic deposits into the dedicated (separate) checking account.||$0.00||0.0%|
|Transportation||Insurance, gasoline, license, registration, maintenance, repairs, car replacement.|
|Utilities||Cell phone, electricity, TV, Internet, water, sewer.|
|Total Expenses||The whole shebang…||100.0%|
Primarily, our Health Savings Account had all sorts of system issues, and I didn’t have debit card access to the account. So, I ended up charging our February medical/prescription expenses to our day-to-day checking account.
I could reimburse my checking account from the HSA, but I think it’s too much hassle to keep up with a ton of paperwork for a few hundred dollars. Our budget took a beating, but we can handle it financially, so that’s that…
Secondly, we’re enrolling our daughter into Pre-K and registrations fees were due in February. Sadly, I neglected to account for this at the beginning of the month. Again, a few adjustments to the budget fixed this problem.
Some Final Notes
As I mentioned in my previous post, I run a zero-based budget, which means two things:
- If I made a mistake and “discover” money during the month, I need to put it into the budget. I account (as a budgeted expense) for every last dollar and cent that is considered income.
- Sometimes, what I estimate at the beginning of the month is different than where it ends up at the end of the month. Yes, I still make mistakes. Ultimately though, I remain flexible and give myself the room to make changes.
If you make a mistake or a few, make the necessary adjustments and don’t dwell on it! Happy budgeting!