Monday, July 1, 2019

June 2019 Financial Update-Mid Year


Despite tapping heavily into prior savings in June when we decided to go above and beyond our original home improvement budget, June was strong enough to get us back on track-a bit. We will have some hefty costs still on the VISA to be paid in July including about 1/3 the party costs and multiple months of car insurance. I also have quite a few non-reimbursable expenses from my work trip and DH and DD2 racked up some take out and meals out charges. I plan to be tighter on other budget items in July like entertainment meals out, and groceries to help make up for June extravagance. 

Here was our annual plan. 

College
$21,000
Show Choir Trips
$1,970
Graduation Party
$900
Move in Weekend Trip
$175
Parents Weekend Trip
$175
Choir Concerts Trips
$350
Home Improvement
$5,430
Total
$30,000

DH had a rather positive June month. I think all the home improvement items to date were on the card last month, though he still needs to change out the faucet. I believe al the small items like the pieces of sod and mulch were on the last, but now I am second guessing myself. Ugh-this is what I hate about DH's work style. He doesn't plan properly, and then we have random costs that jump around the budget and budget periods. l the small home improvement purchases, but the sum below is for the floors, the appliances, the new front door, and the new kitchen faucet. There have been other purchases that cumulatively add up such as plaster, paint, caulk, and other things that can nickel and dime a budget. 

($0)  Borrowed from Savings
$   800  Cash Deposit
 $2910  Show Choir Trip #1,#2, #3 + Nashville (we are over in this category by $940)
 $   100  College Deposit
$8,600   Home Improvement (Over in this category by $3,170)
 $12,410  Net Result 

Last month I took out the $2,600 that we used from savings towards the home expenses to calculate the average monthly savings/goal spending rate of $2,322. I'm deciding to put that back in (or take out) so I get a true expenses/savings rate. With June being relatively positive, we averaged $2,068 savings spending rate a month towards our priorities, despite twice tapping into prior savings. With one more third paycheck month, the 401K max change by October, this rate of savings/spending on priorities will bring us to saving $29,020 by the end of the year. Even with the over spending in tw0 categories, show choir travel and the house, we would only need to tighten our belts $82 on average to still hit the $30,000 target. I sense another challenge coming! 


We might not be done dipping into savings. If we decide to complete another costly project this year yet, for instance the back deck replacement with a patio or the upstairs bathroom, we wouldn't have enough to cash flow the costs. It's tricky deciding when to do the work and incur the expenses. We don't have an endless supply of cash and it felt good getting the savings replenished when I didn't think we would be able to for a while. Still, we are living in the house now and if we do the projects yet this year, there is more time to enjoy. Decisions, decisions. If you are tracking, how is your mid point for 2019? Are you ahead, on track, or have catching up to do? 



6 comments:

  1. We are doing "okay". We are in the phase right now where I am not making any money during my sabbatical, and we are completing a bunch of expensive proects. This was known & planned for, but it means we are drawing down savings & will need to rebuild in September when I'm once again getting paid.

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    Replies
    1. No doubt it has to feel a bit edgy despite all your planning. Remember to enjoy every moment, and let the months you have off help you focus to where and what will bring you long term happiness.

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  2. We took money out of our savings to fund most of our home improvement projects this year - but since we are staying in our home versus selling it it only made sense to do so. We did fund about 1/3 from our regular paychecks. You are doing really well and lots of your financial uncertainties are done at this point in the year.

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    Replies
    1. Since SH is commission, we always have uncertainties, but you are right, we've dodged a few big holes in our plan so far. We know what tuition will be, and we really have very little wants right now but to enjoy our home our family, and time with friends.

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  3. It is hard to keep track, as remodeling always has so many variables. But you are through a very busy time and things will get easier.

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    1. As I wrote the other day, I feel lie we can begin to norm in so many part so our life. College tuition is the new normal for a while, but then that will pass, and we will move to the next phase of our financial lives.

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