Our Budget – December

Total Income: $5,136.34

Expenses:

Mortgage – $1013.66

Electric – $152.45

Car Insurance – $137.95

Water – $54.36

Weekly Misc. Cash – $1520

Health Care – $186.20

Next Car Fund – $298.71

Phones – $75

Internet – $81

Entertainment – $15.98

Student Loan – $84

Total – $3619.31

Net – $1517.03

We do not track every expense to the penny.  At the beginning of each week I go through the ATM and withdraw $380.  That is then split between my wife and I.  This cash is to go towards any small purchase throughout the week.  Any money left over is then put back toward future expenses, such as vacations, presents or unexpected expenses.  This results in a very steady monthly budget.  As money saved during the less eventful months is counted as spent and put toward the more expensive months.

The goal for the net on each month’s budget is zero.  This month our income was unusually high, due to when our paychecks are deposited.  My check is weekly, while my wife’s is bi-weekly.  This was a rare month where I had 5 checks deposited and my wife had 3.  Any extra is put back for expenses expected in the near future.  While some would consider this saving, we prefer to act like it has already been spent and simply have the cash set aside.  We have been doing this for close to two years, and has yielded the best results of anything we have tried.

Rental Property:

Income – $760

Mortgage – $413.65

Net Cash Flow – $347.35

Any income from the rental property is put in a separate account.  My hope is to continue to roll over any income from the property into future purchases.  We are also currently paying down the mortgage 79.80 for this month on top of the $347.35 cash flow.  For a profit for the month of $427.15.

Retirement Contribution:

My Simple Plan – $1080.74

Mrs. Bluegrass Dividend 401K – $1086.19

Total – $2166.93

We each received an extra check this month, but the extra contribution will not go in till next month.  As a result of this $2166.93 our expected income goes up by $86.67/year.

We had a very solid month.  We were $1500 under budget, with a solid $350 cash flow from the rental and over $2000 pushed into our retirement accounts.  While the needle doesn’t move a lot each month in terms of saving for freedom, stack successful months like that on top of each other and progress is inevitable.

Savings Rate: 52.69%

 

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