June 2015 Accountability

June 2015 Accountability

Welcome to the June 2015 Accountability & Budget Recap post.

This post is broken into two sections: Budget and Debt Eradication.


Budget Accountability for June 2015:

Note: As the month progressed, we had a few changes I’ll outline below. This budget is not the same that I projected last month (though it still stayed within the same total amount of money we were set to spend).

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Woohoo!:

  • Under budget for the month – after some tweaking and re-arranging.

Whoops!:

  • Food: As always.

Our Budget Changes

  • H’s business expenses were WAY lower for the week he was gone. They used their Business Credit Card for all their food expenses, which was great – and we should be receiving a reimbursement for the cost of gas. Because of this, I fiddled with the Business Services Budget to accommodate the gas cost (so any reimbursements can go right to savings or Debt Eradication) as well as the cost of a few business supplies H needed this month.
  • Since we were able to lower the Business Services budget by over $100, I was able to add in more to our food budgets to make them a little closer to what we have run in the past. It’s not a good number, I’m not proud, but I’m just saying that’s what I did. Of course we went over, but… yeah.
  • We didn’t pay for L’s camp this month, though we should see that check come out early in July (so I’ve built it into our July budget instead). I adjusted the budget for Kids’ Activities accordingly.
  • There are lots of Slush purchases this month, and I took some of the money from our other budgets that we weren’t hitting so hard this month (like gas and utilities). For more details about that, you can read my post from a few days ago.

Why did we bother changing the budget, if the total money spent is the same?

I am motivated by Mint.com, and seeing a whole bunch of RED indicating being over budget in different areas is disheartening! Instead, I need to feel like we made it out of this month okay. So, yeah…. I don’t really have a good reason.


Debt Eradication for June 2015: $1,269

Debt Eradication:
  • $707.99 extra payment sent to Loan 1 & Loan 2

June 2015 Net Income: -$486.32 


Snowflaking: $273.91 (all of this went into our Student Loan Debt Eradication Fund – if it was prior to the middle of the month, it became part of the big supplemental payment we made; if it was after the middle of the month, it’s still hanging out in the account to be used in July)

  • $39.01 – leftover from our May paychecks (we snowflake any amount over $5000)
  • $100 – my mom gave us a check to help with the utilities cost from their week-long stay. It is ridiculous that she gave us this check and I tried not to take it. (I obviously could have tried harder…)
  • $20 – my dad bought a stack of CDs from us that he can sell for more than $20 total. I counted this as consigning for this month.
  • $80 – H’s side hustle
  • $9.20 – from a Mary Kay order (it had been sitting in my ProPay account for a little while – oops!)
  • $25 – American Express Rewards Dollars
  • $0.70 – interest income on our checking accounts

2015 Consigning Totals: 
I’m curious about how much we will make in one year by consigning our clothing and L’s old toys at my favorite consigning store (and any other sales, if I decide to participate). 
  • $0 (January)
  • $56 (February) – this was unusually high!
  • $20 (March) – woot!
  • $80.31 (April) – yay!
  • $44.20 (May) – whee!
  • $20 (June) – woohoo!

2015 Mintly Snowflaking Goal Progress:

My goal originally was to snowflake at least $50 per month, for a yearly total of $600. As you can see, we’re doing somewhat better than that, so far:
  • $110.01 (January)
  • $929.75 (February)
  • $649.58 (March)
  • $534.50 (April)
  • $289.84 (May)
  • $273.91 (June)

2015 Snowflaking total so far: $2,787.59

To see more 2015 Mintly Goals, please click here.

Life Accomplishments this Month:

  • Bought H a new “toy” related to his business – and got it for a steal, by the time we sold the old one and bought the new one. (Okay, that’s still money-related.)
  • L has been swimming a few times this month and is finally feeling comfortable doggy paddling (though she is feeling comfortable because we got her Puddle Jumpers – AWESOME). She has been super scared of swimming and we, of course, want her to become more comfortable for her own safety (and our sanity) so we are super psyched that she’s doing so well!

TL;DR: Negative net income but stayed in budget overall. Next Month: FRANCE!

Lousy!

Despite having hit a major goal for us this month, we have had a lousy month overall for our financials.

I’m really glad that we were able to send $700 over our monthly minimums to our student loans, but overall, we spent WAY too much and I feel like we just got hammered with expenses this month!

This is the first time since January 2014 that we will end up with a negative net income for the month. That’s 17 months that we’ve had a positive net income. And now we’re breaking our streak. There is absolutely NO WAY (unless someone wants to write us a check for $500) that we will come out ahead this month.

In order to feel positive about our financials, I look at two things. One is our debt decrease, and the other is our monthly net income. No explanation required on the first one (I mean, debt going down is obviously a good thing). I do know, though, that in the PF blogger world, very few people seem to discuss monthly net income as a way of tracking success.

It’s important to me because, for so long, we had no idea what our monthly net income was. In fact, if we had known, we might have realized that it was negative net income and that it was unsustainable. Thank goodness we did get it figured out, and we’ve made some drastic lifestyle changes in order to focus on increasing our net income.

Some folks concentrate on their overall net income growth – that’s fine – I do like to see ours go up. But it moves up relatively slowly. The quickest way to see that we’re moving in the right direction with our money is for me to see that we’re taking in more than we spend.

I should note that we do not count debt payments as “spending” – using Mint.com, I classify them as “transfers,” which is exactly what they are, to me.

Normally, I would have done a monthly check-in blog post this month, but it has been wild (both financially and life-ally, which, of course, go hand in hand). This is the closest I’m going to get.

Here are the out-of-the-ordinary expenditures we’ve had this month:

  • Item for H’s business: We sold something that H needs for his business and replaced it with another one. The new one cost more, of course, than what we got for the old one, and we paid about $1000 for it, in total. (He was very happy to have made the purchase in a savvy way, though – he did lots of research and found what he needed for about $3,000 less than it would have been normally.) Cost: $1000
  • Round-Trip Train tickets in France: We pre-purchased these, as we will need them when we get off the plane in France to get to the city where we are staying. Cost: $423
  • Registration for Conference in France: We bought H’s registration and a day pass for me. (There will probably be more expenses if I wish to attend any other sessions as a layperson.) Cost: $225
  • Dental for L: We had a problem with my dental insurance which was finally worked out after a month, and we had to pay for the remainder of what insurance wouldn’t pay for L’s last visit as well as her 6 month check-up yesterday. (This money comes out of our sinking fund for healthcare, but it is obviously still spending.) Cost: $238
  • Sam’s Club Renewal: We put this off as long as we could, and then we were standing there in line when they told us it had expired. Ha! Had to pay it right then. Cost: $45
  • Picture Framed: My grandma passed away last month and my father brought me home a picture from her house that I had always loved. It had never been framed or matted – but it’s a large image of my grandmother’s four aunts when they were teenagers. I love it! I went to Michael’s and had a 70% off custom framing coupon, and it still cost me an arm and a leg. Hopefully it will be ready for us to pick up soon. Cost: $198
  • Slush Spending: Holy moly, did we spend a lot on random stuff this month. We took my parents to the new outlets in Small City, and I found two short-sleeved shirts that are work-appropriate, and H found pants on sale to replace the ones he’s been wearing (the ones with holes), and two pairs of shorts. I bought perfume on Zulily. I bought shoes on Zulily (Cost: $324

That’s $2,453 in crazy spending! 

Some of that spending falls in our budget: slush spending and Sam’s club renewal (that came out of our grocery spending). Some of it was from our Sinking Fund: all travel & business related items, and the dental care.

In fact, we’re still (barely) within our budget for the month (I altered our slush spending budget to be higher and lowered our other budgets to account for it, thereby leaving the overall budget of $5000 untouched). I don’t know if we’ll be able to stretch that out for a few more days until the end of the month or not, but… I’m okay with this at the moment.

Plus, funds for all of the expenses for H’s Business & Travel were already saved – we were able to pay off everything we put on the credit card.

All in all, I’m not sorry for spending the money we did, I just wish it had been evened out over the course of a few months – because it makes June look SO bad. July may look much the same, as we will be spending as we travel in France. However, we will be able to cut back on our grocery bill and hopefully our utilities budget while we’re away from home.

Well, there you have it – the reasons we will have a negative net income this month, breaking our 17-month streak. Ugh.

I’ll give you all the dirty details about the rest of our budget in my month-end wrap-up post, coming up in about a week.

Happy weekend!

Debt Eradication Milestone!

Now that our most recent Navient payment has gone through, we now owe UNDER $50,000 on our student loans!

We paid our minimum earlier in the month, and I sent an extra payment for a little over $700 (which is actually a bit lower than average this year), and we paid the last payment of about $315 on our Citibank card (where we had transferred some of our student loan debt at 0% interest)…. and we’ve officially broken the Under $50K threshold, as of this morning!

Ah, it’s a beautiful sight….

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