Budget and Savings

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
ChetnaMahesh
Posts: 1
Joined: Thu Feb 08, 2018 10:27 am

Budget and Savings

Post by ChetnaMahesh »

Hi all,

This is my first time posting on this forum and I am very excited to be part of this community.. So yesterday me and husband opened our all banks and credit card accounts to see how we are doing for expenses/Savings.. So for January 2018 here are our expenses and savings... Please suggest if how we are doing or any small tricks to avoid over spending

Mortgage $1300
HOA $300
Utilities (electricity + gas) $300
Phone $65 for both
Car insurance $100
Gas + train pass $500
Childcare $1600
Shopping (includes diaper expense) $460
Grocery $500 (Includes cost of formula) $500
Eating out $150
Entertainment $50
Savings for month $900 in bank
We are maximizing our 41k and 403 b and roth as well
MathWizard
Posts: 6560
Joined: Tue Jul 26, 2011 1:35 pm

Re: Budget and Savings

Post by MathWizard »

Welcome to the forum.

Other people may give you tips, but I'd say that you are doing well.

Since you have little ones in diapers, you must not be very old.

Very few couples can maxing out your tax advantaged and IRAs
while still young. Kudos.

We've only been able to do so once our last child was in his last
year of college, and our house was paid off.

Enjoy the little ones while they are young and still want to sit in your lap.
Those days pass very quickly. Sit them in our lap and read to them before bedtime.
You'll remember that long after they've moved out.
User avatar
GerryL
Posts: 3902
Joined: Fri Sep 20, 2013 11:40 pm

Re: Budget and Savings

Post by GerryL »

OP,
You asked for tips to avoid over spending. Not sure if what you have listed is spending for the past month or an actual budget, or plan for how you spend each month. In other words, do you plan to spend $460 each month on shopping and $150 on eating out, or is that just what happened?

Some find that creating a realistic budget helps them avoid over spending. You might take a look at something called the 50-20-30 (rule or budget), which offers a simple way to plan how you use your money. Google the term for more details, but the basic idea is that you set up a plan to a) spend no more than 50% of your income on necessities, b) save at least 20% and c) use the remaining 30% as you want.
delamer
Posts: 17453
Joined: Tue Feb 08, 2011 5:13 pm

Re: Budget and Savings

Post by delamer »

There seem to be some things missing from your list like internet/cable, health insurance and other medical, life insurance (you do have life insurance, right?), car servicing, car replacement fund, home repairs.

Many of these are not monthly and maybe you are covering them through your $900/month savings.

But money you are spending within a year or two isn’t really savings.

That said, even if you are “only savings” half of the $900 for the long term and maxing your retirement accounts, you are doing well.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
radiowave
Posts: 3352
Joined: Thu Apr 30, 2015 5:01 pm

Re: Budget and Savings

Post by radiowave »

ChetnaMahesh welcome to the forum.

One thing to consider is how to manage your cash and cashflow to best advantage. Are you using a high yield online savings account and perhaps some short term CDs? Here is a good web site to view latest rates https://www.bankrate.com/banking/savings/rates/ interest rates have been creeping up to 1.50-1.60%. Ally is one often recommend bank here on the forum. Also, are you taking advantage of rewards credit cards (1-2% back)?
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page
Snowjob
Posts: 1651
Joined: Sun Jun 28, 2009 10:53 pm

Re: Budget and Savings

Post by Snowjob »

Honestly, I think you are over-saving unless that 900 each month going to the bank is going to be used on vacations and travel.

Your covering a mortgage, maxing all your retirement plans, saving an additional 10k a year in after tax but are only spending 600 dollars a year on entertainment. As long as you have an emergency fund, I would loosen the purse strings and spend a little more this year. Maybe you wont find that you enjoy anything you spent money on, but you also might be depriving yourself of some cool opportunity, hobby or trip. Other than that looks incredible, good luck.
Post Reply