Sunday, September 1, 2013

our budget

In addition to the obvious 'income' column, I sat down with Jon in an attempt to figure out where our money went should go each month. This is a breakdown of the items we figured we would certainly need:

personal expenses
hair cut danielle
hair cut jon
make-up
shower products
shampoo
body wash
face wash
deoderant
dental care
toothbrush heads
toothpaste
mouth wash
gifts
lady products
toilet paper/paper towels
dining out
entertainment
special dining out
jon/danielle fun money
marsala
elden
daycare
diapers
diaper genie/hygiene
wipes
clothes
bills/utilities
water
electric
gas
internet
cell phones
ADT
home insurance
mortgage
home equity loan
student loan
groceries
tithe
car insurance
car gasoline
life/LTD insurance
health
medical expenses
dental expenses
jon
danielle
elden
 
It's worth noting we did not include any emergency funds, particularly for the house or our cars. We opted to go this route because that is just far too unpredictable and with the little bit of money we have left with the above budget each month that likely wouldn't cover it and we'd have to tap into savings anyway. So, we just figured whatever's left each month will go into savings and towards those unexpected but inevitable expenses. We already have enough in savings that should (knock on wood) cover a pretty sizable emergency, but with our luck things will go wrong in threes...

It's worth pointing out that the bills/utilities are our obvious expense coming in at 65% of our monthly income. The Elden category counts towards 19% (thanks, daycare), personal expenses are 4% and health expenses are about 1.7%. For you mathematicians, that leaves just over 10% of our monthly income to stash back towards savings. It's not the greatest number in the world but it's better than the red we were ending up in each month before we decided to really hammer out these numbers. We didn't shoot for any particular percentage in each category, just looked at our incredibly neglected mint.com account at some of the trends and narrowed it down to the more critical ones. We know this budget is fluid and numbers will likely change as we go, but for now we feel comfortable with what we've done (including our $10/each "fun money" that we can do what we want with - this helps keep us accountable for things like an impromptu pumpkin spice latte run that I have thus had minimal self control over). So, these were the categories we used. It will also change when Jon graduates in May and we face either additional income and/or additional student loan or daycare costs. But ya gotta start somewhere, right?

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