My new year's resolution was to document every single purchase for 2020. So far here's what I have, dates are from Dec 30 2019 (date of paycheck) to May 23 2020.
Background info: 25, single female, living in a large city. No pets, no children.
12 months ago I was roughly $20,000 in debt, lived in a one-bedroom apartment that cost almost 2 grand a month, and was spending recklessly. I was making good money, but had nothing in savings and was only contributing $75 a paycheck to retirement.
In an effort to reduce my monthly expenses, I cancelled my lease and rented a bedroom in a house with 2 other roommates. This freed up over $1,100 in monthly expenses, allowing me to increase my retirement savings, open an IRA, aggressively pay down debt, and actually contribute to a savings account. I also began a very profitable Poshmark account selling items in my closet that I won't miss.
Today, I have nearly halved my debt. My car and student loan debt are paid off. I currently have $1,000 remaining in credit card debt and $9,450 in personal loan debt, both at very low interest rates.
It's been incredibly eye opening to document every purchase. I think twice now about everything I spend.
Yes, I still splurge on some things, but that is only after contributing to my retirement accounts/savings/investments and paying off my bills.
I use personalcapital.com and a homemade spreadsheet to track expenses.
| Year-to-date amount | Monthly average | An outliers or explanations | |
|---|---|---|---|
| All income (salary, last year's tax refund, stimulus check, Poshmark earnings, etc) | $41,207 | $8,241 | |
| DEDUCTIONS: 6% of total income | |||
| Federal tax | $2,572 | $514 | |
| State tax | $0 | ||
| ESSENTIAL PURCHASES: 19% of total income | |||
| Life insurance | $125 | $25 | |
| Rent/utilities | $4,000 | $800 | |
| Phone-related expenses | $1,037 | $207 * | My monthly bill is only $55, but I purchased an iPhone SE out of pocket due to water damage in my last phone. |
| Renters insurance | $106 | $21 | |
| Car insurance | $895 | $179 * | Car insurance in my area is extremely expensive. I drive a 5-year old inexpensive vehicle and have no accidents. |
| Gas | $116 | $23 | Fuel efficient vehicle + not driving car much. |
| Groceries | $1669 | $338 | |
| NON-ESSENTIAL PURCHASES: 21% of total income | |||
| Misc. parking fees | $156 | $31 | Unavoidable in my city. |
| Restaurants/take-out | $1,750 | $350 | |
| Travel | $2,857 | $571 | Vacation to Brazil + several out-of-town trips (hotels) |
| To-go coffee | $290 | $58 | |
| Personal care (hair products, makeup, razors, etc) | $1,011 | $202 | |
| Salon (nail and hair) | $658 | $132 | |
| Monthly/annual subscriptions | $237 | $48 | Online newspaper annual subscription $120, Norton annual subscription $50 |
| Miscellaneous | $1,350 | $270 | |
| Gym pass + home gym equipment | $365 | $73 | Stationary bicycle + weights purchase = $220 |
| Clothing/bags/purses | $0 | ||
| Internet/cable | $0 | Included in rent | |
| DEBT PAYMENTS: 16% of total income | |||
| Credit card debt principle | $3833 | $766 | Aggressively paying this off. Only $1,000 remaining! |
| Paid credit card interest | $52 | $10 | APR rate is 4%. |
| Personal loan principle | $1979 | $396 | Minimum payments $360/month. |
| Paid loan interest | $130 | $26 | APR rate is $2.99% |
| Student loan payments | $606 | $121 | Completely paid student loan off in February. |
| RETIREMENT: 19% of total income | |||
| FICA | $1596 | $319 | |
| TSP Roth Contributions | $3144 | $629 | Employee match adds an additional $216 a month. Not factored into the listed amount. |
| 2019 Roth IRA contributions | $1500 | $300 | |
| 2020 Roth IRA contributions | $1450 | $290 | |
| SAVINGS & INVESTMENTS= 18% of total income | |||
| Savings (sum of deposits + withdrawals) | $4812 | $962 | |
| Stock investments | $2186 | $437 | |
| Current checking account balance | $556 |
Submitted May 23, 2020 at 01:52PM by bakersdozn12 https://ift.tt/3bZDY9D
