A Look Inside Our Monthly Budget

Last week, a reader asked if we would be willing to share the details of our 2018 budget. Sure, I have no problem with that. We’ve shared our budget several times over the years as we’ve worked toward various goals. With that being said though, every budget is unique to the lifestyle and income of the individual or couple and ours is no exception. As you read this post, please keep in mind that the financial choices we have made, may not be right for you (and vice versa).

A few years ago, I read an article called “The 50/20/30 Rule for Minimalist Budgeting”. At first, I was excited. I thought I’d finally found a definitive guide to help me – a minimalist – create the perfect budget. Believe me, I tried to follow the rules:

  • 50% of your income for essentials
  • 20% to savings
  • 30% to personal

It wasn’t long though before I realized this budget did not fit our lifestyle. Don’t get me wrong, the 50/20/30 rule is a great guideline. I highly recommend starting with these percentages if you are new to budgeting or are having trouble getting your discretionary spending under control. For us though, 30% of our income seemed a rather large chunk to allocate to personal choices, even with our love of travel and fancy dark roast coffee beans included.

Trying the 50/20/30 rule led us to an eye-opening discovery though. We found that we could successfully live off approximately 65% of our (then) income, without compromising our savings or our personal goals. This was all the permission we needed to spend less time working.

Today, we are a single-part-time-income couple (with a cat). After taxes, insurance, and other standard deductions, we will bring home $29,778.72 this year (not including any proceeds from side hustles).  Our current budget is based on this income and follows more of a 72/18/10 rule:

  • 72% of our income is spent on essentials (rent, utilities, insurance, groceries and gas)
  • 18% is directed to savings, investments, and charitable giving
  • 10% is spent on fun (Netflix, baseball games, movie nights, etc. and funding our travel account)

Our monthly budget looks something like this:

Here are a few things to note.

  • Rent is our single biggest expense and that’s not likely to change this year. We’ve accepted that in order to have a safe place to live within a reasonable distance of my mother’s house (we moved here to care for her), we have to pay a higher rent. Believe it or not, this is the mid-range rent for our area. Other apartments start at $1079 and up for a one-bedroom. Who knows what next year will bring though!
  • I have 5 payments left on my last student loan. Woo-hoo!!
  • This budget shows a “zero sum” but sometimes we have a carryover balance between $40 – $160, depending on our actual electric bill and our flexible spending categories (gas, groceries, entertainment, and cash). It is a rare month that we actually spend $80 on entertainment since most of our favorite pastimes are either free or cheap. Any money left at the end of the month is allocated to general savings.
  • Side hustle income is not counted in our budget because we don’t always want to work a side hustle. Sometimes it’s fun, sometimes it’s a hassle. When we are saving for a specific goal, like a vacation, we hustle, but only up to the point in which we reach our goal. Our side hustle income has been about $4,000 so far this year, which is unusual for us, but it has allowed us to cover some unexpected expenses, like vet bills.
  • We use an American Express Bluebird card for groceries and household spending. This is a prepaid debit card that you can pick up at Walmart for $5. There are no annual fees or usage fees. We have $250 debited from our main checking account to the Bluebird account on the 15th of every month. This has been extremely helpful to us in staying within our grocery budget.
  • Our non-IRA investments include $5 per week in micro investing via Stash. Stash allows you to purchase stocks and ETFs (exchange traded funds) in increments of just $5 or more. Since 2016, we’ve earned a little over $110 on our micro investments (plus we’ve learned a lot about investing in general by reading their weekly tips).

For better or worse, this is the budget we created for the year and the one we are trying to stick to. It’s subject to change at any time though, as we’re always challenging ourselves to find new ways to live with even less.

4 thoughts on “A Look Inside Our Monthly Budget

    1. Right!! I graduated in 2005 with barely any debt. Afterwards, my then employer talked me into going to an expensive grad school for a degree that would “advance my career”. With only a few months left until graduation, I quit, and I quit my job too. I went on a 2-month camping trip with my 9-year -old niece and decided the only things I ever wanted to climb again were mountains, not career ladders. It has taken me a decade as well to knock out this student loan and I will probably do the wildest happy dance you’ll never see when I send that last payment on December 17th.

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  1. Thanks for sharing your budget. You guys do an awesome job of managing your money. Your rent is crazy but worth it for the security you want. Great to see the end of those student loan payments! I am definitely going to check out Stash and the American Express Bluebird card. I recently tried Greendot- they charge way too much, dang it. I ended up paying for two months before I could cancel the darn thing. Ticked me off.

    Liked by 1 person

    1. Oh yes, we are very familiar with Greendot! We got one for our niece a few years ago and nearly fell over when we saw all the fees. We have had Bluebird ever since and never a problem or a fee.

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