Month: January 2018

On December 26th, 2017 I went on a walk with my mom and sister. The high for that day was -4 degrees Fahrenheit, with a low of -15 degrees and the wind made it feel another 10 degrees colder than that. According to the National Weather Service, frostbite can occur within 5 minutes at temperatures between 0 and -19 degrees Fahrenheit.

After a few minutes of being outside, I could feel my eyelashes sticking together every time I blinked. Out of the corner of my eye I could see a coating of ice forming on the inside of my sweatshirt, the moisture from my breath frozen within seconds after leaving my lungs. While the signs of extreme cold were apparent, I was toasty warm with every inch of my body (except my eyes) blanketed in multiple layers of clothing.

Preparation is vital when living in a severely cold and snowy place like Minnesota. Shoveling your driveway early in the morning so you can get to work, turning your car on 15 minutes before you leave to let it warm up, and spreading salt on ice so it melts before someone slips on it are common practices. These proactive measures make future life easier, safer, and more comfortable.

Likewise, preparing for your financial future can greatly improve your future quality of life. Saving 20% or more of your income, contributing to an IRA, and taking advantage of an employers 401(k) match will make your financial goals and retirement planning feel like a warm car in a snow-free driveway.

Short-term preparation can just as beneficial. If you know you are going to work on Monday, you can prepare by making your lunch on Sunday night. If you are traveling, you can plan ahead by checking out public transportation options at your destination instead of relying on Lyft or a rental car. These small preparations add up, and played a large role in keeping my personal spending under $9,000 for 2017.

How are you preparing for the future?

#MoneyGoals

Here is every dollar I spent in the last year:

Rent – $4,874.00

This breaks down to an average of $406.17 per month. Achieved by living with 4 roommates for most of the year, and 5 roommates for a few months in the summer.

Cell Phone – $152.63

Average of $12.72 per month. I use the service provider TPO, and I also didn’t buy a new iPhone (still rockin the 5c).

Groceries – $1,475.42

Average of $122.95 per month. I buy lots of bulk brown rice, beans, lentils, fruits and vegetables. I detailed my favorite go-to recipe here, and there will be more recipes to come!

Dine Out – $146.78

Average of $12.23 per month. This is the most noteworthy number to me, because 140 dollars is more than it costs to buy groceries for an entire month. Less than 10 meals at restaurants over the last year cost more than approximately 90 meals and snacks when I buy and prepare my own food.

This is why I rarely dine out. It’s almost ten times more expensive than cooking yourself, and is usually less healthy as well.

Travel – $948.39

Average of $79.03 per month, although almost all of my travel expenses came in March and May for my trip to Australia. There were other expenses that landed in the groceries/dine out/other columns that were directly connected to my traveling and I wouldn’t have spent money on otherwise. A couple road trips to Austin (July) and San Antonio (September) rounded out my year in traveling.

Other – $1,103.16

Average of $91.93 per month. I will probably break this “Other” category into more specific categories for 2018 to get a more accurate picture of my miscellaneous expenses. The big expenditures for 2017 that landed in this category were a new bike and parts (~$450), gym locker and membership fees (~$100), wedding/Christmas/graduation gifts (~$200), and this blog (~$100).

I will definitely start a “Transportation” column to track my bike and bus expenses for next year, so I can compare them to an average American’s car-based transportation costs.

TOTAL – $8,700.38

Average of $725.03 per month. This will most likely increase in 2018, as my housing situation might change after graduating, and I will be lucky to keep my housing expenses around $400 per month. I may be able to offset those costs by not taking an overseas trip this coming year, and hopefully not getting my bike stolen.

If you have any questions, comments, or criticisms about my spending habits, I’d love to talk to you about them! I would also encourage you to track your own spending, as it is a powerful way to boost your saving efforts. Thanks for reading, and best of luck to you in 2018 🙂

#MoneyGoals