Where does the money go?

I was offered a new job last summer which helped me to speed up my loan repayment and be more challenged at work. I feel quite comfortable where I am, financially, and look forward to more opportunities in the future.

I began using YNAB (You Need A Budget) last August and it has been revolutionary, I’ll go into more detail in a post next week, but it’s completely changed how I view money management. The most significant ‘rule’ is Give Every Dollar a Job, so that’s what I do. This means there are many budget categories with month left over each month, but I’ll eventually use it.

Spending plan for July

Retirement – 20%

House, Car, Emergency Fund, and Vacation Savings – 30%

Gifts (saving for Christmas) and insurance – 4%

Essential expenses – 37%

Discretionary money (see Not Necessary) – 9%

total – 100%

I’m super excited my high debt repayment and a recent raise has allowed me to save 50% of my income each month. I’m able to achieve this almost every month.

As I said above, some of this ‘spending’ is actually setting aside funds for future spending. Like my haircut money for July, and saving $50/month towards my new smartphone in the fall.


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