A blog about dividend investing and financial independence for a person supporting a 7 person family on one income. My goal is to be retired at age 55 to pursue other passions in life and rely on a passive income stream generated from dividends.
Wednesday, April 13, 2016
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.
Difference Vs. 2015
Utility combined with Sewer
Utility combined with Water
should go down further next year with my new HVAC
formed new agreement with waste company
bulb burns out I replace it with LED
using it for internet now
was forgiven. However it did affect my
go back down now that I work close to home
major repairs last year
family, more soap
categorization I guess??
saving for home repairs
will go down next year now that I have better insurance
to drop this down
expense behind house, who would have guessed
Free Spending Money (Wants)
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.