Welcome to the first installment of the monthly money recap, where we reflect, learn, and grow from tracking our monthly expenses.
Tracking your expenses is a hill many financially savvy people will die on.
Call it a spending plan, a money management system, or whatever you want, but many agree all households should have one.
In this post, I’m sharing where our money went in January and some personal reflections.
Necessary expenses
Mortgage: $1,500
Electric: $221.76
Internet: $104.99
Gas (cars): $ 237.60
Groceries: $763.89
Max (🐶): $68.16
Total: $2,896.40
Notes for the reader:
Correctly managing your money means prioritizing your necessary expenses.
I always recommend ordering your budget from most to least important.
What is essential for you to live must come first.
Necessary expenses may include:
- Food, water, shelter, transportation- this doesn’t include eating out, but may include items like trash pick up, car tags, etc.).
- Requirements to make a living- cell phone costs, internet, daycare- (consider what you need to earn money).
- Dependents- People or things you are responsible for (children or pets).
- Minimum debt payments- any debt you owe and its minimum monthly payment is considered a necessary expense.
*The lower your necessary expenses, the better and more free income you will have.
January was a generally low month for our necessary expenses.
There are higher months that I hope to share in the future, representing how your necessary expenses can fluctuate.
Unnecessary expenses
Netflix: $16.73
YouTube TV: $72.99
Eating out: $113.02
Clothing: $15.69
Target: $137.20
Marshall’s: $124.15
Amazon: $9.99
Total: $489.77
*Everything else is considered a non-essential expense.
Non-essentials include wants, luxuries, and things that bring us joy. It is never about excluding categories, but ordering them correctly inside your budget.
This month’s spending:
$3,386.17
(excluding business expenses)
I often get asked how we’re able to work so little and accomplish so much. Our monthly spending is less than some people’s mortgages. That is a conscious choice. Remember the more money you have available, the more opportunities you can create.
Reflect💭:
January was an unusually low spending month for my family. After the holidays, it feels nice to regroup financially.
Most years, January is a lower spend month for us.
Feel☺️:
Proud. We intended for this month to be a lower spend month. And for that, I feel successful.
Wins🏆:
We crushed our discretionary spending.
Our trip to Target, don’t believe me if you don’t want to, was based on a list and included only things we needed.
We bought dishwasher pods, a humidifier, supplements, cleaning products, and hygiene products walking out with nothing extra.
You can go to Target and tell IT what you need, but I’ll admit this is a rarity.
I’m allowing myself to be proud of this and know I can do it again.
Discussion question: One could argue that these were necessary purchases. In my eyes, they are not. Play around with organizing these expenses and do what works best for you.
The Amazon purchase was a book, and my husband and I bought new clothes. The $15 is what we owed after using gift cards.
Marshall’s was fun money.
We bought organizational products for the house and clothing.
Eating out was abnormally low. We did eat out on two other occasions, but the meal was either bought in cash or paid for by someone else.
Loving💕:
Something fun I wanted to add to these MMRs is items and purchases I’ve been loving.
Our money serves us in three ways: saving, investing, and spending. And I don’t want to leave out the present joy that spending money creates.
This month, it’s my candle lamp. (*not an affiliate, just genuinely sharing)
Have you seen these?!
My brother and sister-in-law got it for me for Christmas, and I’m obsessed.
Although I didn’t buy it myself, I would purchase one for every room in my home.
Fun fact: the lamps are not very expensive, and I was skeptical when I learned it made your candles last longer. Guys, I’ve been burning candles every day for HOURS, nearly entire days, and there is barely a centimeter difference.
Can someone do a side-to-side comparison on how this lamp could save you hundreds in candles every year 😆.
I highly recommend it.
January was a spectacular spending month for us.
Likely, it’s the lowest of the year.
February will look vastly different; it is one of the most expensive months for our family.
I hope to continue sharing our MMR as the year progresses, sharing realistic life spending.
Budgeting can get lonely sometimes and feel isolating.
But loud budgeting is here, and I heard all the cool kids are doing it!
Talk soon,
Coach Sam