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August Net Worth and Budget Report

Spending has been getting a bit carried away this summer – and I need to get it back in check as I begin to seriously contemplate a very drastic career change (requiring a major paycut and possibly additional schooling.)

In August, my net worth was relatively flat at $394k (this includes my car worth estimate, so I’m really considering my net worth to be $386k.) My goal for the year is $400k, which leaves 4 months to save $14k. On my current income, if I stop being SO HORRIBLE at giving in to overspending, that should be very do-able. However, I will likely leave my job in October or November, meaning that most of the saving has to happen in September. This month can’t look like last month. I’m embarrassed how much I spent!

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August Budget Breakdown

  • $1350 (rent $2500 split 50%-ish w/ HECC)
  • $304 – gas, taxi, parking
  • $284 – car registration
  • $96 – $192 – bills & utilities (split 50% w/ Mr. HECC)
  • $46 – entertainment (1 movie ticket, netflix, itunes)
  • $18 – fees (BoA fee from account I  need to shut down + 401k fee)
  • $1274 – food ($2548 – split 50% with Mr. HECC)*VERY BAD
  • $274 – gifts/donations/other weddings (missing gifts I owe people)
  • $558 – health – therapy mostly
  • $561 – personal care – mostly Sephora + $100 spa day *VERY BAD
  • $241 – hobbies, website
  • $112 – dry cleaning/alterations
  • $520 – shopping – home items mostly for kitchen
  • $108 – electronics
  • $322 – travel – mostly flight for sept weekend trip
    ————————————————————-
  • $6028 total spending 🙁

Income $9576
Remaining $3508

I AM SPENDING WAY TOO MUCH MONEY AND IT HAS TO STOP.

Yes, I’m saving/investing $3500 a month on top of my frivolous spending, but I’m serious about changing jobs and not being so focused on earning a high salary that I quite frankly don’t deserve. I want to be good at my job and I’ve realized that part of that means making less money. This also means learning how to live on A LOT LESS — I’d like to for a few months live on under $3000 a month. I should be able to do this because I don’t really need anything. Yet life adds up even when you’re not blowing hundreds of dollars at Sephora.com. Here is a breakdown of my planned budget for September:

  • $1350 – rent: no way to reduce this until lease is up in May
  • $200 – transportation: reduce costs by walking to train station vs $10 a day uber!!!
  • $100 – bills & utilities, hard to reduce by much
  • $20 – fees, I need to cancel my Bank of America checking account by October
  • $200 – entertainment, have a weekend trip to vegas booked already, free hotel and some free food, but want to leave room for a little splurging here if I can fit it
  • $800 – food and dining. This is a huge cost and both Mr. HECC and I are horrible at spending on food. I can’t believe we jointly spend $2500 last month on food/drinks alone. That’s ridiculous. I’d like to get my food spending under $800 for the month. That is still a huge budget for one person, but it’s a start.
  • $400 – gifts & donations – wedding gifts owned to two people
  • $400 – health & fitness  – therapist (2 sessions) + doctor visit
  • $100 – personal care – haircut
  • $100 – travel vegas cabs
  • $300 – wedding, thank you cards
    ——————–
  • $3970

So even with that budget, I need to cut another $970 out of it to get to my goal of spending <$3000 per month. So I think my goal for September is going to be to spend under $4000 a month — it’s a start, anyway. After tax I’m taking home about $10,000. I won’t be once I lose this job but I think I’m stable for September. I’d like to save $6000 this month, which is not the $14k I need to save to hit my net worth goals for the year, but it definitely gets me closer.

Spend Goals:

September: $4000 ($6k save)
October: $3000 ($7k save)
November: $4000 ($6k save)
December: 3000 ($7k save)

… if I keep my current job until the end of the year. It would be very nice if I was able to do that because then I’d have $24k to save over the next 4 months. I’d invest $14k and save $10k for my emergency fund – which I’ll need since it will be a miracle if I can keep my job through December.

In any case, right now I need to focus one month at a time. $4000 still feels like WAY TOO MUCH to be spending in one month (on my expenses alone, not counting MR. HECC’s expenses) but it is what it is. I don’t think I can get much under than for September.

 

 

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One comment

  1. Norm says:

    Funny, I was just checking in with our net worth. My goal for 2015 is $375k. This month we are at $359k, which is flat from last month, all because of the stock market. So hitting our goals might not be up to us. Good luck!

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