I’m a few days late getting my monthly update posted, but that’s because July was a crazy busy month. I got a new job, am moving, and might be buying a new house. All of which should make for some good HotFrugal topics over the next couple of weeks. Stay tuned.
In the meantime, here is the update as of yesterday, August 3rd. The great news is that I have more than reached my emergency savings fund goal. Of course, I may be eating into this soon if I do decide to buy a house. I’m not sure if it’s actually wise to use part of my emergency fund to buy a house, so I need to do some serious number crunching in a rent vs. buy analysis. Naturally, all of you HotFrugal readers will see how this plays out.
For now, let’s move on to the update…
I made a good recovery on my net worth this month, bringing it up to $70,508 from $64,888 the month before. This increase is completely attributable to saving aggressively. The refunds I got on home insurance and my escrow account following the sale of my house went straight into savings.
The cool thing about this is that I didn’t feel the least bit tempted to spend that money. This is a huge mental shift from where I was a year ago. You know how you occasionally get some unexpected cash (a larger than expected tax refund, a bonus at work, etc.)? I always thought of this as “free money” that I could spend guilt-free on anything I wanted. I actually still think that this is a legitimate option and that there’s no need to feel guilty about spending money like that, especially if you have your financial basics in order. But if there isn’t anything that you truly, genuinely, deeply want or need, why spend it?
|Mad Money Savings||$2,366|
|Health Savings Account||$1,557|
|401(k) (Vested Balance)||$34,939|
|Car Value (per KBB)||$5,125|
|Net Worth (Assets – Liabilities): $70,508|
Spending over the past six months has averaged $2,498 per month, which is right on target with my goal of $2,500.
My always challenging grocery and dining out budgets were really wonky in July. I think the spending in these categories is a good reflection of how busy July was. It was a very fun and social month with lots of going out and meeting up with friends. As such, my dining out expenses were quite over budget. On the other hand, my grocery expenses were WAY under budget. As a combined total, I was under budget but it’s probably not too healthy to eat out as much as I did in July.
|Budgeted Amount||Actual Spend (July)||Variance|
|Dining Out||$160||$211||$51 over budget|
|Groceries||$238||$110||$128 under budget|
Another good month, which has brought me to an interesting new place in my financial life. I’m currently debt free and I have my emergency savings established. So what’s next? I’ve never before been in a position where I have “extra” money for investing. I’m not quite sure what to do! It’s a confusing (but completely fantastic!) position to be in. Stick with me while I figure it out… I’ll be needing the support and advice of all my fabulous HotFrugal readers!