Wealth Building Goals:
- Be eligible to be an Advanced customer with my primary bank by July 2017 – Completed July 2017
- Have a fully funded emergency fund by March 2018 – 96.1% of the way there
- Have a net worth of $150,000 by March 2019 – 65.6% of the way there
- Be eligible to be a Premier customer with my bank by March 2020 – 10.9% of the way there
During the month of July, we went on vacation to Philadelphia. The purpose of this trip was to visit family and to do a little shopping. We had been planning this trip since February 2017, so I put aside $160 each month. This allowed me to take $800 for spending money. Even though I had that much, I was very conscious of my spending. I didn’t want go overboard and end up swiping my credit cards. Before we left for Philly, my parents gave us an anniversary gift of $200. We ended up using the gift money for food expenses.
During the trip I ended up spending a total of $452.65. I purchased clothing for $268.33, facial products for $137.72, miscellaneous items for $37.70 and food for only $8.90 (Remember the $200 from my parents). Getting the unexpected gift, allowed me to come home with $350 and I am really appreciative. I am really glad we visited because I really enjoyed hanging out with my father and brother-in-law (even though I ended up getting sick three days into our trip) and I know my husband really missed his Dad and brother.
Next on my goals for July, was trying to spend $250 or less on groceries, but that didn’t happen. Although I went over by $150, I was bothered because I normally budget $500. I was just trying to experiment with the grocery budget and meal plan. I now know $250 is not an adequate monthly budget for two people if your fridge/pantry is completely empty.
Also, I really want to save 60% of my salary but couldn’t get there. I did save 49% of my salary plus the $350 I brought home from our trip. Saving almost half my income helped my net worth increase by $4,585 or 7.64% of my $60,000 goal for 2017.
Net worth changes for July 2017:
Social Insurance (+344.70): Since July had five Mondays, the contribution was $68.94 higher the June’s. This account balance is solely based on contributions. No interest is gained on this account and the benefit you receive when you retire is based on how many contributions you make.
Job Pension (+1,936.08): For the month of July, I contributed and additional 10% of my salary. During the month of June, I thought I would have to contribute the bare minimum, however everything worked out and I was able to keep the amount the same. The increase is from the monthly contribution and a gain of $401.08.
Emergency Fund (+502.99): I didn’t have to use any of the funds in my emergency fund this month and was able to add $500 to the balance. I also earned $2.99 in interest. It is not a lot, but I am hoping to earn at least $3.00 each month for this account. Hopefully, August will go by without incident.
Cash (-873.97): In addition to the normal transactions that are in transit to their appropriate accounts, I like to keep the grocery budget in cash and have a coin jar for all the loose change. We will be going to Amsterdam in October, so I am also putting a few dollars aside for that.
House Fund (+3230.30): I have been putting aside $3k each month with the hopes of saving enough to purchase my first home by the end of next year. The change in this balance is due to the contribution from June 2017 and interest earned on the account.
I do not have any kinds of debts. I do however, use my credit cards for everyday expenses and I also ensure that I pay them off in full at the end of every month. I normally get around.
August 2017 Strategy
This is more of my strategy for the rest of the year. I plan on keeping my spending to a minimum because I want to make sure I hit all of my benchmarks for 2017. In order to hit all of them I will not be purchasing any new shoes, clothes (except for the ones I planned on purchasing at the beginning of the year) and will try to do my hair myself. I will look for other ways to cut expenses as well as ways to increase my income. The other half of my August strategy is my normal monthly goals:
- Save 50% of my salary
- Spend $500 or less on Groceries
- Brown bag it everyday
- No more soda
- Track all expenses