I didn’t set any specific financial goals the past year. All I know was that I have been spending money without thinking. However, I did track my expenses since January and I am pretty shocked at what I saw! It really shows how mindless spending can impact on your savings goal.
Here is a snapshot of my average monthly income, spending and savings since January 2014:
Car insurance: I pay this yearly so the amount on the spreadsheet is just to show how much I need to put away a month to pay my car insurance in full.
The Mortgage: Reflected in the spreadsheet is the portion that I pay. The Husband and I have a mortgage of about $1400 a month. We really want to pay down our mortgage as quick as possible so we are putting in more than we need to pay.
Gifts: I spent way more than I expected on gift this year, but then again, it’s because it’s the big 3-0 birthday dinners so we are going to nicer restaurants for food and drinks.
Household: Includes anything that is associated with fixing up the house or buying furniture.
Clothes: I have spent $544.57 on CLOTHES PER MONTH the past 7 months! That’s ridiculous! I don’t even remember what I bought! Okay, maybe my spending spree have contributed to a portion of it, but still $544.57 a month for the past 7 months?! That’s about $3800 that I spent on STUFF! GAH!!!!!
Restaurants: I am not surprised as I was taking classes two nights a week the past year right after work and have spent quite a bit of money on grabbing fast dinner food.
Savings: Savings include money I put away into RRSP and high interest account. I didn’t break it down any further. I don’t put much in my RRSP as my work takes about 12% of my gross income off all my paycheques as pension contribution.
Since I have RELIGIOUSLY tracked my expenses the past 7 months, I have a pretty good idea of where I am overspending and could set a much more realistic budget at first and start shaving off unnecessary costs as time goes on.
Now that I have a wake up call, it’s time for me to get back on track. Here is what I project my average income, spending, saving will be for the rest of the year for now:
I hope to tweak and revisit this budget bit by bit every month to see what I can cut back (especially the restaurants part). I really want to save that $1000 a month on top of the money I save for to pay for my car insurance and my travel fund.
How about you, did you have any shocking moments when you review your spending?
~The Money Pincher~