The month of January was an exciting one. I switched jobs and left the corporate world. Because of unused vacation days, my income for the month of January was quite high. This allowed me to put extra money towards my student loans.
I did incur some extra costs that I typically didn’t have. As of now, I have elected COBRA continuation health coverage. It is quite expensive and ate up more of my income than I had initially planned but no worries. Life insurance is another category that I have to take on now as well.
After I had met all of my expenses for the month of January, I had a remaining $45.22 balance. This amount I used to make an extra payment on my student loans. My income for the month of February will most likely not be as high as it was for the month of January. This means that the amount I have to spend and use to pay down debt will be less. Every dollar, every penny is accounted for. Take a look at an in-depth review of my January 2015 budget. There is no perfect science to budgeting your income and expenses. Everyone has their own way they like to do it. The purpose is to hold yourself financially responsible and take steps towards your financial well-being.
| Earned Income (After-Tax) | $5430.94 |
| Mortgage | ($660.00) |
| Rent/Utilities/Cable | ($528.99) |
| Car Payment | ($300.00) |
| Car Insurance/Cell phone | ($121.46) |
| Gas | ($69.68) |
| Groceries | ($100.00) |
| Eating Out | ($142.54) |
| Roth IRA Contribution | ($300.00) |
| Miscellaneous Expenses | ($321.82) |
| Student Loans | ($2545.22) |
| Life Insurance | ($33.98) |
| Health Insurance | ($307.25) |
| Final Amount | $0.00 |
Budget Smart, Invest Wise
I saw your net income after tax and was shocked for someone in their twenties. I compared to mine and notice I have a lot of before and after tax deductions that are supporting retirement funds. I have a company pension that is pulling 6% of my income which is matched and bonused to 14% total and after tax stock options of another 5% deducted before I get the pay check in the bank. Leaves me less to work with on a monthly budget in my twenties but planning for long term I guess.
Hi Matt, as noted there was extra income through unused vacation days. Also, at 25 I have managed to create multiple sources of income. It sounds like you have a great savings plan through your work. I encourage you to keep it up and continue budgeting and saving!
COBRA can be incredibly expensive, especially if you have a family that needs to be covered. However when you are trying to bridge the gap between your previous job and the time that insurance kicks in at your old one or you make other arrangements, you just don’t have many options to choose from.
To me, budgets are a way to give me control over every dollar that I spend. They allow me be purposeful in my spending, savings, and investments.