The Year of Living Frugally - Week 4

[sumdumsurfer]

One Month Budget Checkup
Two years ago, I was living in a 4-bedroom 3-bath 2600 square-foot home in the midwest. The last year and a half, my home was down-sized to a 850 square-foot cottage in far northern coastal California (strangely enough, the rent on the cottage was the same as the mortgage on the Minnesota house). Now, I’ve downsized again - into a [ame="http://www.flickr.com/photos/chainsofbabylon/2311365905/"]frugal_room on Flickr - Photo Sharing![/ame]with a 8′x5′ storage unit (~150 square feet).

I hate moving.

Not all aspects of moving… moving can represent fresh starts, new places, new living situations.

I hate the fact that moving the first 90% of your stuff takes 10% of the total time needed - while that last 10% (and cleaning) seems to take forever.

The pre-check-out cleaning seemed like it would never end… (because I’m not going to pay someone 25$ an hour to clean for me). The bleach, the soaps, the simple green (which is neither simple nor green), the windex. My skin has been completely stripped of all of its protective covering - but the work is finally done.

Just in time, too - it’s time to see how much I spent this month (now that I’ve had a couple days to recover and get my computer set up).

If you recall from the “Baseline Budget“, which was taken from the average monthly expenses for 2007 - my budget looked like this:

Monthly Expense, 2007

Total Housing & Utilities $1036
Total Debt Maintenance $636
Transportation Total $337
Total Dog $200
Subscriptions Total $33
Food total $390
Webpage Total $22
Emergency Fund $100
Vacation $300
Misc Total $170

Expense Total $3224
Income Total $2675

Hemorrhaging $549/month

The “normal” expenses for the month of February went as follows:

February 2008 Expense, Simple

Total Housing & Utilities $1119
Total Debt Maintenance $636
Transportation Total $107
Total Dog $141
Subscriptions Total $15
Food total $227
Webpage Total $17
Emergency Fund $100
Vacation $0
Misc Total $54

Expense Total $2398
Income Total $2675

Savings $277/month

My housing expense actually went up last month. This is due to having all of my initial monthly expenses, and adding a storage unit ($34/month plus deposit), and a Skype account ($60 - paid for one year). Next month my housing costs should show a huge reduction - primarily because my rent went from $850/month to $275/month.

My debt maintenance remained the same. Actually, I sold over $700 worth of items on craigslist, and I made a $700 extra payment on credit card #1.

After a dedicated effort, my food costs were much lower. I made my lunch more. I tried to use up the food in my pantry (so I wouldn’t have to move it). The only eating out in February was associated with the “dog-dinners” and not counted there.

Other costs showed some slight decreases. The dog costs were slightly lower - due to the fact that I took my friend to dinner only 3 times during the month. The subscriptions only reflect a payment to Netflix (which should be my last payment at that plan level), and I let the Surfer magazine expire without paying for another year.

Finally, I did receive my final overtime paycheck - which I promptly spent on a plane ticket to Central America. I need to go on vacation, otherwise I start losing vacation time in the summer (I am nearing my accumulation cap). Perhaps the plane ticket is not frugal - but the vacation destination can be frugal (as you will see in upcoming installments).

Above, I presented February in the context of a “normal” month. Adding in the additional income and expenses it looks like:

February 2008 Expense, Total

Total Housing & Utilities $1119
Total Debt Maintenance $636 + $700
Transportation Total $107
Total Dog $141
Subscriptions Total $15
Food total $227
Webpage Total $17
Emergency Fund $100
Vacation $521
Misc Total $54

Expense Total $3619

Normal Income $2675
Overtime Income $749
“Sell my Stuff” Income $700

Income Total $4124

Savings $505/month

I am stoked that I came out over $500 ahead for February. I’m thinking of making an additional credit card payment, but I need to do my taxes first and see if there is a surprise waiting for me.

It is also important to note that I had very little in the way of “yearly payments” to make in February. The yearly budget was easier to make because all expenses could be averaged over the 12-month period. It is much more difficult to account for those expenses one month at a time. There could be some surprises in the future if two big payments fall on the same month. I imagine that those more organized than I save money each month to cover those payments…

I’m glad that moving is out of the way - one month down, eleven to go. My living space may be much smaller now, but moving forced me to examine what I held as important in my life. I’m glad I took the time to re-prioritize my hobbies, possessions and lifestyle - it is too easy to become comfortable in our ruts. The biggest shock is not having central heating… but I’m already starting to acclimate (and in a month it won’t matter).

As my dog would ’say’ with head cocked to one side looking expectantly - “What next?”

[TheRootedNomad]

What a nice dent in the debt reduction area from the extra income. I don't have much to comment on these weekly entries but very much enjoy reading them. They make me think through different things with my own monthly budget. Keep 'em coming.

[Scattymum]

you are doing great! well done!

Im really enjoying readiong about your journey

[julieb]

I like reading your journey because it helps me examine my own priorities. You are an inspiration and know you have a midwesterner here cheering you on.

[forHISglory]

Keep us posted. Sounds like your are SumSmartSurfer!

[imforpeace]

Good for you!

[Darlene]

I really like your attitude.

[Jenna]

Finally, I did receive my final overtime paycheck - which I promptly spent on a plane ticket to Central America. I need to go on vacation, otherwise I start losing vacation time in the summer (I am nearing my accumulation cap).

Did you "need" to buy that ticket? or "want" to buy that ticket? Sure, you can take vacation time - but can your really afford to go on a trip?

[Jenna]

That OT check would have been a nice chunk of change to toss at your Visa debt.

[Cricketlegs]

That OT check would have been a nice chunk of change to toss at your Visa debt.

True and being frugal that would be the first option most of us would consider but IF the OP has "dug" out of being in the "hole" each month. Has changed his attitude about how he spends his money,and he is actively putting money on debt AND in savings, then why shouldn't he decide to go on vacation if he CAN afford to go?

I think if the priorities, the willingness to work and stay at it are there then he didn't make a bad choice.

[sumdumsurfer]

Thank you everyone for the support, encouraging words, and questioning!

I come here for inspiration.

My life, I realize, is fairly easy. I have just my dog and myself to take care of. I read about everyone else's challenges and success here, and I am humbled and inspired to find some of this success for myself. By reading the forum entries here, I could create a template for getting my budget under control.

The reality is - there is no good reason why I should be running a monthly deficit on my paycheck. None.

One of the bigger reasons why I got myself into this mess was due to the influence my Monkey-Brain has on my life.

The ticket to Central america in May? I'll justify it ten ways til the cows come home - but it was a Monkey-Brain purchase. My "Sell-my-Stuff" fund? I almost decided to buy a new surfboard with that money. I even thought about buying the surfboard - then not claiming the money or the purchase on my blog...

The Monkey is conniving. The Monkey will be my undoing when I only have to fend for myself (it is easier for me to be responsible when I feel directly involved in other's well-being).

Surf-travel is the one frivolous thing I would pick over all others, so I did justify the purchase of the ticket. It will keep me healthy, let me de-stress from a very tense work environment, and motivate me to pursue my long-term goals.

There is a method to my madness.

This project is slated for an entire year. This first month was just a baby-step. I have a long-range plan - and perhaps next week I should detail the end goals for this project. I have the feeling that looking at the goal, and charting the steps along the way - I will continue to look here for more inspiration to live a more frugal lifestyle.

This first month was like picking the low-hanging fruit, and just the beginning.

Aside from that - this is my first experience in sustained writing for entertainment - and I am enjoying this immensely!

Thanks again for your help!