Jan 2015 Income/Expense Report

posted in: Rental/Dividend Income | 4

?????????????????????????????????????????????????????????????????????????????????????????Well as promised I went back through my Jan. statements so that I could really see how much I was saving prior to this challenge.

It really is depressing to see how careless I was with my money!

My savings rate for Jan 2015 came in at a dismal 23.5%!!!!

Jan 2015 income

Rent: $1150

Reg. Income: $2417.7

Total: $3567.7

Invested into E-Trade: $160

Expenses:

Mortgage (PITI): $1137.01

Student Loans: $260.24

Food/Coffee: $970.17

Utilities: $90.34

Building Supplies: $271.11

Total: $2728.87

Ring: $2621.47

$3567.70 – $2728.87 = $838.83

$838.83 / $3567.7 = .235 x 100 = 23.5% Savings rate

$838.83 – $160 = $678.83

I did not factor the ring into my savings rate as I am considering it a non common event. Clearly my biggest problem here are my eating habits. But what can I say… I love to eat! Something else I am noticing is the fact that at this point in my life 60% savings rate is a bit unrealistic… but I can still try! My mortgage and my student loans are going to stay the same for a while, so they will be my fixed costs. I also know that I can budget my food and coffee to $20/day or $140/week. Utilities somewhere around $90 actually seems pretty expected to me. And as I also said building supplies will be present for a little while so I can bring another rental unit online. Just by reducing the amount of money I spend on food to 20$ per day that will increase my savings rate to 33.9%! Still not even close to 60% but it would give me and extra $370 to invest or save. Furthermore once the next apartment is done building supplies will drop to virtual $0 for a long time I will be receiving at least $650 if not $700 a month extra in income and about $50 worth of gas and electric will be switched into a tenants name further reducing the utilities. At this point my monthly income will be $4217.7 and my total expenses will be around $2037.59 and my savings will be $2180.11. This puts my savings rate at 51.7%! Damn! still not 60% haha. One final thing im noticing is that my math was off in my 60% challenge page… Ill fix that later. At this point in my life 60% seems a bit out of reach but im not going to adjust my goals. I know eventually my income will increase to the point where my savings rate will reach 60% especially if I am able to save 51.7% to put towards future investments.

Im glad I did this, it really gave me some new perspective on what I need to do to get the job done!

I encourage you guys to do the same! I think you will be shocked at what you come up with!

4 Responses

  1. Setting realistic goals is extremely important. Don’t be afraid to revise your objectives to better match your life. You want goals to be motivating, not discouraging. Getting that third unit up and running will be a great boon to you, so that’s where I’d prioritize my time/money at this point.

  2. Even though you are pretty unhappy with your savings rate for the month at least you can see where your expenses came from. The key to improving a savings rate always comes down to expense management and not income. Kudos for detailing each expense line by line so you know where you can save even more going forward. That’s all part of attaining a goal… be specific about your goal with by seeing real numbers and not some obscure statement such as, ‘I want to save more.’ Say, ‘I’ll cut $30 from coffee,’ or some other specific number. Thanks for sharing.

  3. It’s good that you realized that 60% savings rate is quite unreasonable but if you can cut some expenses, maybe that’ll allow you to go to 30-40% savings rate. 40% savings rate would be pretty good. Another way is to look into increasing your income.

    • Yeah, once I started using real numbers it became clear what I will be capable of at this time. And youre correct increasing my income will kill two birds with one stone! The nice thing is that I am able enough to save enough to start working towards those goals and increasing my income.

      Good day!

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