2016 Budget version 1

Before I put out my March update I thought I should share with you all my 2016 Budget and any goals I have for the year.

First let's take a look at my adjustments I made to the budget.  These were either because of my monthly average increasing for the line item or adding or removing new items.




Item
Difference Vs. 2015
Notes
Mortgage
2

Water
17
#1 Utility combined with Sewer
Phone
-15

Sewer
20
# Utility combined with Water
Gas
-18
This should go down further next year with my new HVAC
Garbage
-5
City formed new agreement with waste company
Electric
-1
When I bulb burns out I replace it with LED
Cable
-115
Only using it for internet now
Loan
-350
Loan was forgiven.  However it did affect my 2015 taxes
Auto Fuel
24
Should go back down now that I work close to home
Auto Service
-9
No major repairs last year
Personal Care
20
Larger family, more soap
Miscellaneous
-6
Better categorization I guess??
Household
190
Now saving for home repairs
Healthcare
11
This will go down next year now that I have better insurance
Food
-200
Attempting to drop this down
Clothing
-30
Doesn't include kids
Kids
213
#1 expense behind house, who would have guessed
Home Insurance
11

Guilt Free Spending Money (Wants)
50

Emergency Fund
1000

Vacation Fund
400

Christmas Fund
65


Overall my budget is lower this year than last (-191).  With the savings from that and increase in salary I was able to formally create savings goals to track against.  So far I have been able to hit most of the savings goals each month (except January.)  January was a miss because of the higher credit card bill from holiday spending in December (and this why I need a Christmas Fund.)

The Kids line item continues to increase every year.  This was expected with the new addition to the family.  It will be several years before this drops back down (potty training).  All in all kids are a good investment for the future of the human race.  The more kids I have and raise to the best of my ability the better off the world will be.  A friend of mine was telling me we need a test like a driver's test to get a license to have kids.  Interesting concept but I don't see any presidential candidates pursuing that one.

The downside is it leaves about $50 for investing.  Once I have my emergency fund at the 3 month expenses level I can then turn that into the Investing Fund.  This still will not align with what I should be investing each month so I will have to look at further ways to shrink the budget.

With that said I am looking to combine my Auto and Home insurance (especially since my son will start driving this year).  Also my healthcare line item will adjust as my new health insurance has a deductible that is several thousands of dollars lower than my previous insurance.  When my one year of savings with DirectTV runs out I will also switch down to a lower packages to save there.  After the 2 year contract is up we may even get rid of that bill.  With the internet we can watch what we want when we want.

Last but not least is my final attempt to reduce the water/sewer bill will be installing  water efficient toilets.  After the new washing machine failed to reduce it the only other item left is the toilets.  The ones I have now are 24 years old and probably use 5 gallons a flush.  By comparison new toilets use only 1.2.

I welcome additional ideas on frugality from those with many kids.

Have a good day all,
Dividend Family Guy

Comments

  1. Looks like you have it pretty dialed down. Living leaner than I am as a single guy with no kids.

    ReplyDelete
    Replies
    1. Just to be clear that is just the change vs. last year and not the total/actual. Those are way higher ;-)
      Cheers,
      DFG

      Delete
  2. Hi DFG,

    Great update on your budget! It's always good to see the miscellaneous category come down because of better categorization. Putting money aside for travel & Christmas is sensible too. Most important I think is that you're proactively planning how you'll spend your money and adjusting/updating the plans regularly.

    Do you think you'll be required to dip into your Emergency Funds in the next 6 months? Otherwise you could consider reducing the contributions slightly as the amount increases e.g. 1000 until you've saved 1 month expenses, then $800 until 2 month expenses then $500 or similar strategy.

    Best wishes,
    -DL

    ReplyDelete
    Replies
    1. Not a bad idea. I may also do like you and invest that money in a fund. The industry I work is good as I have never been laided off in 18 years. That is why I never really needed an emergency fund. Now that I am gettting older I think about it more and want a plan in place.
      Later,
      DFG

      Delete

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