Each month I will post an update on my finances to both give you, the reader, some insight into my situation and to give me markers of my progress on my financial journey. My updates consist of two parts:
- Financial Progress Table – Tracks net worth progress.
- Spending Table – Compares monthly spending to an average (for me) “bare bones” budget, keeping me accountable for additional expenses.
For now, monthly updates include only my personal net worth and spending. As my fiancé and I combine our finances, updates will shift to cover going values instead.
Each net worth goal in the Financial Progress table is broken down into undisclosed units of money. My current goal is to reach “Financial Freedom.” By the time I reach this goal I will have:
- A retirement account that can support us when my fiancé hits 65
- Two college savings funds funded for four years of in-state public university tuition, room, and board
- An emergency fund for six or more months of living expenses
- Sufficient liquidity for my fiancé and/or I to make a career change with one to two years’ runway
- A mortgage less than two times my gross salary without bonuses
Once “Financial Freedom” is achieved, the focus will then working be towards “Financial Equilibrium”, where the income from investments covers all our ongoing expenses.
I’ve created a “bare bones” budget which represents the average minimum amount I can expect to spend each month. This is the minimum amount I need to comfortably live in case of a job loss, emergency, etc. I expect to frequently go over my “bare bones” budget in a number of categories (here’s looking at you, “Groceries & Dining”), but I want to remain accountable to myself when I do so.
For privacy reasons, there are two things I do not include in my spending updates: my monthly mortgage and charitable donations (pegged at 10% of my net income).
I had a whole thing here and then WordPress ate my entire post. Grumble grumble.
Anyway, this month I did okay in spending. The biggest overages were hotel reservations for our honeymoon and ordering various group deliveries for our hosted game nights and the like.
I’ve been in the progress of doing a lot of little financial moves to get our money in order before we get married. I’ve had to call so many customer service lines and I hate it every time. Bleh. Hopefully I’ll get most of the rest done in August so I don’t have to deal with it between our trip and the wedding.
In the non-financial department, life is kind of weird right now. I’m still kind of struggling at work and have yet to develop any sort of proto-friendships there. Meanwhile, there are some things going on in the background with regard to our friends and family that are out of our control but still kind of concerning. And, you know, the world is crumbling apart and our country is still actively abusing migrant children. I feel pretty saturated with despair and worry and sometimes hope. Very, very exhausted.
Notable things that happened this month include:
- First month at the new job
- Picked berries for the first time and learned how to make fresh raviolis with friends
- Went to the Cape for a quick summer vacation
How were your finances in July?