July 2017 Spending

spending report

Tracking spending is a good way to stay on track for FI and make sure nothing gets out of control. It’s a way to evaluate your decisions and make adjustments for the next month, as necessary. I like to ask myself each month:

  • “Did this purchase bring me enough happiness to justify the amount I spent?”
  • “Can I do something differently to save more money?”

I use a combination of Mint and Personal Capital to track our finances, and I update everything monthly. You can find past spending reports here, and an ongoing summary of our net worth here.


golden(This was originally published on 8/3/17, but I had an issue with my domain registration and this post got deleted.)

Welcome to the first Trail to FI spending report and net worth update! I guess I should call it a “debut” rather than an update since I’ve never posted it before.

It’s a little unfortunate that my first spending report is for July. This past month didn’t help out our FI progress as much as we would have liked.

A trip to Colorado and another trip to Michigan meant our spending was higher than usual. THEN add on top of that tuition for my wife’s master’s classes over the summer aaaaaannd…

It’s not good. It’s kinda embarrassing, to be honest. Here I am talking about how important it is to reduce spending so that you can invest more. I feel a little hypocritical, like I’m not walking the talk.

But it also doesn’t help to pretend that we don’t have periods of high spending. It happens, and you just gotta role with it. I want to be honest with you, dear reader, out of respect for the sacred art of FIRE blogging. You can trust that, for better or worse, I will be transparent about our finances in the pursuit of financial independence.

The other highest spending months on record (I didn’t start tracking our spending until we got married last July) have been August 2016 and January 2017. Why? Tuition: both my wife and I are working on master’s degrees. And what was the highest spending category this month? Tuition. So give me a break, Jake.

Anyways, on with the July details.

Income

As I mentioned, we went to Colorado and Michigan in July. My wife was teaching a class for smart middle-schoolers in Colorado (at our alma mater), and I drove out to meet her and enjoy the mountains.

She has been in between jobs this summer, so our income has been lower than usual. Luckily, her new job starts in August. The drought will soon be over!

Total income: $6,371

  • Total IRA contributions: $543
  • Total 401(k)/HSA contributions: $1,956
  • Total investment rate: 39%

Of our total income, we directly (and automatically) invested 39%. Retirement accounts are one of the easiest ways to access free money. Our taxes are reduced, and my employer contributes a portion (3%) of my salary. We contribute the maximum to both IRA’s ($5,500/year each) and the maximum to my 401(k) ($18,000/year).

Spending

And now for the fun part! (I guess?) Our total July spending was…

Total spending: $5,685

It’s not too bad when you consider $2,310 of that went toward tuition for my wife’s classes. $450 of that was spent while we were on vacation.

Here’s the break down:

July 2017 spending

Here’s a quick run down of each category.

  • Tuition: Summer classes for my wife.
  • Rent: We moved in June, and our rent is now a little higher. The value in this category includes water, sewer, and trash.
  • Groceries: I throw anything that is bought at a grocery store or Costco into this category, so it’s not necessarily food. We did stock up on staples toward the end of the month, but this is higher than we want it to be.
  • Bills & Utilities: Rental insurance, cell phone plan, internet, electricity, Hulu (we pay for Hulu and my in-laws pay for Netflix), a haircut for me, and the annual safe deposit box renewal fee.
  • Restaurants: This is our biggest weakness. We eat out once per week (!), and we shoot for less than $200.
  • Gas & Fuel: I’m not too worried about this, considering we were driving to and from Colorado AND Michigan from a Midwestern city somewhere in between the two.
  • Health: Doctor visits and a couple of prescriptions.
  • Shopping: Miscellaneous! School supplies for my wife’s class and a new toilet plunger, among other things.
  • Travel: Light rail to and from the Denver Comic-Con (lit), tolls driving to both Colorado and Michigan, and Uber to the airport (but not a plane ticket – miles, baby!).
  • Alcohol & Bars: we had a lot of alcohol in Michigan…
  • Gifts: Birthday gifts for my nephew and mother in-law.
  • Entertainment: We stayed with my aunt and uncle in Denver, so we took them out to Wonder Woman as a thank-you. This category also includes an afternoon to a local museum.

And here’s how it looks compared to the previous year:

net income july 2017

The goal is for net income to be increasing, or at least staying steady. Next month we should see an uptick in net income, both due to higher income and lower spending.

Things to work on

Now that I’m doing these spending reports, I would like to have a better idea of what we spent money on so that I can accurately report. My philosophy has been to organize by where the money was spent rather than what it was spent on. I still plan to do that, but it would be nice to have receipts to check what the money was spent on.

Since we now have higher rent, we promised ourselves we would find ways to make up the difference. I guess we’ll start than in August…

Net Worth

I recently added our FI Progress where I will be updating our net worth and asset allocation each month.

And! I’m now officially on the Rockstar Finance directory! I’m basically a celebrity now.

Here’s a quick run down of how our money was allocated in July:

July 2017 accounts

One big thing that sticks out is how much we have in “savings.” This is entirely cash. We are considering getting into real estate soon, so we are saving up for a potential investment opportunity. More on that later…

Here are some more charts!

assets update july 2017

8 thoughts on “July 2017 Spending

  • August 14, 2017 at 10:28 pm
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    Nice savings rate! Good summary of your spending and your investing rates. Good job, keep it up!

    I look forward to hear your journey into real estate.

    Reply
    • August 15, 2017 at 1:18 pm
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      Thanks! I tried to be thorough, so I appreciate the feedback.

      I was think about doing a post about it next week, so stay tuned!

      Reply
  • August 15, 2017 at 6:10 am
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    Found it! Hopefully your domain issues are behind you, Dylan. What a pain…
    Curious where in Michigan you guys visited. I’m from there, and we’re visiting the grandparents in Charlevoix next week. Looking at your numbers, I’m curious what cell plan you use. Also, have you thought about haircuts at home?
    Peace!

    Reply
    • August 15, 2017 at 1:26 pm
      Permalink

      Holland – Western MI near Grand Rapids. I’m not too familiar with MI, but I’ve enjoyed being introduced to it through my wife’s family.

      We use AT&T, which is currently $40 per line, but I’m considering changing to a budget plan. Not sure about the haircuts…I’m pretty particular! I might try it in the future. I wanted to start out the blog as a baseline and then whittle things down as we identify potential improvements.

      Reply
  • August 30, 2017 at 10:41 pm
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    Im pretty excited to have found your blog so early on – it will be really interesting to watch your FIRE progress in real time rather than trying to play catch up as I do with so many sites.

    I just started my blog this month and now have a real appreciation for how much time and energy this takes, so I have to add that I am super impressed with how much you have done in such a short time!

    Reply
    • August 31, 2017 at 6:56 am
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      Wow! Thank you very much for your kind words 🙂 it does take a lot of work, but I have enjoyed it so far. I found your blog, so I’ll be following you too. Are you on Twitter? Or the Rockstar Finance forums? Lots of bloggers hang out in both places, and there is even a secret category on the forums for bloggers only. http://forums.rockstarfinance.com/

      Reply
      • August 31, 2017 at 6:09 pm
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        Not on Twitter yet, but maybe eventually. I have been following Rockstar Finance posts on facebook for ages, but just joined the forums a few days ago. I just had my blog added to their directory, but I didn’t realize their was a special forum. I’ll have to check that out.

        Reply

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