So, after my last post, I read the Frugalwoods Feb 2016 spending post, and I have to admit it made me feel embarrassed. Like, WTF are we spending all our money on??? So, the hubs and I took advantage of a morning where we both worked from home (with a sick kiddo – boo!) to review the spending and get a better idea what was going on.
First off, I’m not 100% sold on the Personal Capital spending amounts….maybe I just need to get used to it or I’m just so used to my YNAB that I’m a little attached to that, but I looked at our YNAB number to see what might be different. For one, I do love that Personal Capital lets me designate certain transactions as reimbursements. We have medical expenses reimbursed in this manner, and Mr. Fool uses our credit card when traveling for work which gets reimbursed (but yay miles!). So, in YNAB this shows up as “spending” and has to get backed out, where as in Personal Capital it gets designated as a reimbursement and therefore not included in spending. So, PC 1, YNAB 0….not that I’m keeping track or anything.
Regardless, the YNAB number was $10,387….quite a bit different than PC. But included in that number was $223 of medical and $1169 of travel reimbursements, bringing us down to $8995. Then, we also had to put $800 of our hard-earned cash toward one of our rentals (which is totally a topic for another post) for reasons I can’t bring myself to even discuss right now, but obviously not a normal recurring expense for us. So, if we deduct that just to get a better idea of more average spending, we’re down to $8195 – closer to the PC number.
Included in that number was also $434 for the outdoor project, $332 for the laundry room project (obviously true expenses but NOT normal monthly costs for us), $1199 in auto expenses (also a topic for another post ugh) and our semi-annual $271 car insurance payment. I budget $50 for that a month and therefore have a little surplus left over each time which at this point I’m just letting build up a bit.
After all that we’re down to $5959 which included $1665 of a mortgage payment ($4294 net). Still abysmal compared to others, and especially the Frugalwoods when you consider they spent $1K more than usual! And, lest you think I am calling the $5959 our spending vs the larger number, I am totally not. But I’m hoping it represents more accurate spending that once the projects are completed and we don’t have auto expenses either we can be spending that VS the larger number and therefore saving a lot more. I also realize I haven’t even gotten into that whole “WTF are we spending our money on?” question, because technically I only talked about the things we don’t normally spend our money on. But, I’ll save that for another post.
This summer I am SO lucky to have a job where they are going to let me work from home and be home with my kids, which is going to save us $160 a week in childcare expenses. That money will most certainly be stashed away into savings!
Later this month we will also be getting Mr. Fool’s annual bonus check, and we have already determined that my traditional IRA will be fully funded for 2015, and we’ll see what we do with the rest. Then in April we have a 3-paycheck month which will mean more income vs spending, and that will get saved as well. Ideally we’ll start putting money into my IRA for 2016 right away so it’s not last minute.
I’m glad to be on this journey and realizing that we needed to get a handle on things. We still feel foolish, but hope that 6 months from now and a year from now seeing the changes over time will make us start to feel a little less so.