Week Three Review: Budgeting
Despite a hectic week, I carved out some time to dive into my income and expenses with a commitment to financial freedom. Here I share my budgeting journey for January. Join me in this journey in finding balance and empowerment in the world of budgeting, where every dollar helps us move forward towards a brighter and more secure future.
The past week proved to be quite overwhelming. Work responsibilities piled up, and on top of that, I had a much-anticipated mini vacation planned with my partner and kids. Unfortunately, amidst the hustle and bustle, I found myself lacking the time to reflect on and review the goals I had set the previous week, putting me a bit behind schedule. Nevertheless, I’ve now managed to carve out a moment to share my budgeting journey with you. So, welcome! Step into my world of budgeting, where I aim to find the ultimate balance for my money.
Keep in mind that while I may not have reflected on and reviewed my goals that I set out this past week, I did dedicate some time creating my budget for the month of January. Using the power of Excel, I finally found a moment to sit down and take control over where my money needs to go.
The first step of my budgeting journey started with assessing my income. After referencing my take-home pay, I discovered that my average monthly income hovers around $5,000. Not too shabby, right? But as we all know, effective money management is not just about the income; its about where the hard-earned cash goes.
Let’s kick things off with my big expenditure – the home expense. A whopping 36% of my income, totaling $1750, goes into maintaining my home. From rent and utility bills to internet and streaming services, this category demands its fair of attention.
Next up, the wheels that keep my life in motion – transportation expenses. Accounting for 22% of my income, or $1100, the cost of getting from point A to point B feels a bit steep right now, mainly due to my car payment. I am actually on a path to paying this debt by the end of the year. From my car payment to car-related expenses such as gas, oil changes, car washes, car repairs, parking, or occasional ride-share fares, these dollars at up.
Now, the unsung hero of our daily lives – living expenses. Constituting 9% of my income, or $450, this category covers the essentials that keep me going. From toiletries and groceries to dining out, entertainment, clothing, vacations, cell phone bills, and monthly subscriptions – these are the things that make my life fun and comfortable.
Now, turning our focus to the future – savings expenses. Savings expenses are not just about stashing money away; they are about investing in tomorrow. Accounting for 18% of my income, or $900, savings ensures that I’m building a safety net for unexpected emergencies and securing a comfortable retirement.
Finally, lets address our commitment to financial freedom – debt payoff expenses. Accounting for 15% of my income, or $725, this part of my budget deals with the ongoing battle against past financial decisions. This category includes payments for credit cards and student loans, and with this budget I intend to tackle this debt head-on as part of this financial journey.
My budgeting journey required me to crunch numbers, and through that, I couldn’t help but feel a sense of empowerment. To me, budgeting isn’t about restricting oneself, it’s about understanding where money goes and channeling it toward your goals. A budget serves as a roadmap to financial freedom, allowing you to prioritize what truly matters to you. So, there you have it – a glimpse into my budgeting journey. If you’ve ever felt overwhelmed by a sea of expenses, take a deep breath and dive in. Budgeting is not just a financial tool; it’s a mindset that propels you towards a brighter, more secure future. Cheers to life well-budgeted!