It took until the end of January for me to really sit down and figure out a plan for 2017. I now have a plan in place for: graduating with my Masters, a timeline for a honeymoon, and a strong cost estimate of the wedding reception. What I plan to do after my Masters is still TBD, though I do plan to figure that out by the end of 2017.
My January net worth was up 0.4%, which is mostly notable because my total income was $180 and the last positive net worth change I saw was in August 2016. I anticipate my net worth going down 1.4% from December 2016 to December 2017. I did make my 2017 Backdoor Roth IRA contribution on January 1st.
I set monthly goals in my planner and then check in on them at the end of the month. I started doing this in 2016 and it has been great! They’re a mix of action items and routines I want to cultivate.
- Done! Max Roth IRA – done 1/1
- Pass! Drink 64 oz of water per day. I drank 59.3 oz/day on average, which is 93% of the way there.
- Ehhh. Walk 10,000 steps per day. I averaged 7,246 per day, which is on par for most Januarys so I reduced my February goal to 8,000 steps.
- Partway. 2 barre classes per week (5/8) This means I made it once a week every week which isn’t nearly as bad! I made my February goal once per week and hopefully I’ll find the scheduling to get there twice. It’s getting a little tight on some punch cards I bought in the fall so hopefully they don’t end up getting wasted.
- Success! Clothing whitelist only.
- Success! Early February trip booked.
- Success! Discretionary spending under $1,000. I’m trying to make sure that my limited budget still has room for some personal luxuries. It helps that I stocked up on barre punch cards in the fall when there was a sale so I won’t need to buy any for a bit and there are definitely luxuries built into the joint budget.
- Fail! One personal finance blog post per week. (1/4)
- Success! Donor Advised Fund plan. We agreed that each person got to have the final vote on where their portion of the donation money went, but we were to make the plan and do the grants together. We made donations to a neighborhood food bank, the ACLU, Planned Parenthood, Wikipedia, the Electronic Frontier Fund, a local women’s homeless shelter and some other local charities that my husband supports. I am further donating my time by volunteering to prepare tax returns through VITA (Volunteer Income Tax Assistance), which is really fun!
I’m managing my personal cash flow right now by keeping three savings accounts: one for grad school tuition, one for living expenses covering the remainder of 2017 and then one for living expenses in 2018 which will simply turn into cash reserves if I end up with a paying full-time job again. I have an automatic transfer of $1,500 on the 1st of every month to the joint checking account to cover my half of the expenses. I then take any extra money out I need to cover expenses as needed rather than transferring out a fixed amount. The grad school savings account is on track and the 2018 living expenses account is currently empty. The 2017 living expenses account had $26,952.93 in it at the end of January, when it should have $33,000.00 in it to get through the year. I’m anticipating deferred compensation income from my former employer in Q1 and a small personal income tax refund that will cover this difference with a small bit leftover to go into the 2018 savings account. I do have another $20,548 in Series I Savings Bonds that I could cash in and another $16,000 in Vanguard taxable index funds.
My goal is to pay for my half of the wedding reception out of my $36,000 budget for the year. $18,000 of that is the joint spending plan, which leaves $18,000 for personal spending. With $12,000 allotted for the wedding reception, I have $6,000 to work with for personal spending in 2017, which means I need to make it count! I estimated that my personal spending was about $20,000 in 2016, so this is going to be a huge experiment.
I’m setting a monthly budget for my personal spending and then checking in on it throughout the month. January was a really good start!
Transportation: This should hopefully be the last time I have to pay for the car insurance out of personal spending! Transit is paid per academic period and is a reasonable price for how much I use it.
Shopping: For clothing, I replaced some underwear, which was on my whitelist. I also bought two pens and a notebook. I’m otherwise working on shopping my closet this year ;)
Entertainment: I renewed my personal domain, switching registrars to a cheaper one and had one dinner out with a friend.
Food is mostly the occasional lunch out on class days due to awkward timing of the class.
Cell phone: I switched to a cheaper data plan by reducing my data usage and in the process, reducing the time I spend on my phone per day to under two hours! My budget here was completely off because I’d changed plans after I’d already paid for the previous month. We didn’t make our cell phone bills joint because my husband pays for way more data than I do and his employer reimburses him for part of his plan.
Medical: This was paying for the remaining December medical costs. Despite my husband’s work having great health insurance, the premiums to add me were really expensive (as in about 5x what he was paying for himself). We’ll sort that all out at tax time in 2018 though, so month-to-month it will look like I’m spending very little on medical for most of 2017. I also have about $3,800 in an HSA that is helpful here.
Toiletries is low because I returned some products that I had bought in November/December that weren’t working.
If you take out the transportation, cell phone, and medical expenses, that leaves me with $380.26 in discretionary spending in January, which isn’t that bad! That’s basically my February budget ($300: $100 food, $100 entertainment, $30 cell phone, $20 eyebrows, and $50 toiletries).
We also were pretty on budget with the joint spending! We were only $15.89 over our monthly cash in if you take out the two unbudgeted expenses. We each transferred in funds to cover the negative portion of the cashflow.
I hid the HOA dues from this view. We paid two months in January based on how things fell.
Entertainment is just a cash refund from a merchant that overcharged us and then couldn’t refund our credit card. I keep meaning to use it towards groceries because I hate carrying cash but I never have it on me when I’m at the grocery store…
Spotify is Spotify family. We have an account each, an account for our home stereo system (so there is no conflicting), and each of our dads have an account. We should really cancel Pandora since we mostly use Spotify but we’re grandfathered into the old rate plan and I’m having a hard time giving it up…
There is a Groceries budget listed here but we don’t follow it – it’s the average of our 2016 spending. We don’t meal plan other than that we usually eat chicken two nights, pasta two nights, beef one night, and repeat one of those the other two nights or be lazy. Restaurants is one lazy night in and otherwise food around meeting up with wedding reception vendors, as was the one Uber (which I should rename Lyft because we’ve switched loyalties to Lyft based on their current public stance).
Furnishings is the remaining item for the living room remodel. We are so close to being done with that at last!
Gifts is a wedding gift, two baby gifts, and cards for them.
I prepaid Comcast in December, so we didn’t pay them in January.
One tank of gas in January, which was near the end so we might not fill up in February.
Travel was flights and hotel for our early February weekend trip. The hotel nights were technically paid with points, which I count as spending in the approximate cost of the nights had we paid for them ourselves and as income to balance it out to zero.
Miscellaneous was jewelry insurance on my rings, picture hangers, a popcorn popper, and a measuring cup.
Wedding was the remainder of our postnuptial agreement costs, cake tasting fees, photographer deposit, and tickets to a show.
Readers, how was your January?