Here's my monthly budget...any tips on saving more??

[That Girl From ATL]

I need help with budgeting. It's something I've never been good at it and I'm getting a late start but I want to be successful at it. I'm tired of not reaching my savings goals and not making my dollar stretch. Below you'll find my income, expenses, and my questions:

 

Monthly income:

Gross: 3678

Net: 2475

 

Net pay is after insurance, taxes, 3% 401k, $26 employee gym, $15 employee legal plan, disability, life insurance, medical/dental, $108 monthly flexible spending account (I go to a therapist once a week),

 

Monthly expenses:

savings 600

rent 683

cell 85

water 30

cable/net 60

car insurance 75

student loan 134

groceries/toiletries 250

electric 100

car gas 100

SUBTOTAL 2117

 

Other expenses:

entertainment (movies, activities, bars/clubs, etc.) 50

Beauty (nails, hair, etc.) 100

Clothing/shoes/accessories 100

Extraneous (oil changes, birthday gifts, etc.) 50

Eating out 100

SUBTOTAL 400

 

*GRAND TOTAL: $2517

 

Here are my questions:

 

1. How do you think I'm doing as far as my savings? I'm putting only 3% into 401k but my employer's putting in 12%. Should I keep it at 3 or increase it? I'm 32 and have little savings. If I increase it, I may have to decrease the savings amount, which leads to my next question:

 

2. I would like to increase savings from 600 to 1000. (Please keep in mind this means I need an extra $442 a month. It would be 400, but my expenses are more than my income by $42). I know this seems unreasonable but I don't think it's impossible. Any suggestions on how to do this with my income? I do photography on the side so I could try getting another 100-200 extra a month from photography gigs. I'm willing to forgo some of the "other expenses" to increase my savings. I already take public transportation to work. I would like to still be able to have a little bit of a social life though.

 

3. I'm single, no kids. Does my grocery amount seem extravagant? Right now I'm thinking I could save money in the areas of grocery, electric, beauty & clothing. I have been careless with my electric, I must admit (I have a 1 br apartment 750 sq ft so it shouldnt be 100/month!)

 

What are your thoughts? How much would you try to cut from each section to reach my goals? If I'm being unrealistic about anything let me know. I'm willing to settle for a savings of 800 for now if 1000 isn't achievable.

[Cactus Flower]

Do you need $100 worth of clothing/shoes/accessories every month?

There are plenty of months I spend nothing in that category.

I color my own hair and do my own nails - so I don't personally have that expense either outside of an $8 box of hair color.

 

I can't say what groceries and toiletries cost in your neck of the woods, but I don't spend that much either.. probably closer to $175-$200... however I eat a lot of weekend meals at the folks.

 

Periodically shop your auto insurance (just bear in mind they typically pull your credit for that)

 

Electric, yeah you might be able to shave some off that... be aware of times when the tv is on and you aren't watching it, turning lights off in rooms you are not using.. slowly transition over to CFL and/or lower cost LED lighting. My average bill for a 1400 square foot home in Phoenix is $95 a month.

 

I purchased one of those Brita filtered water pitchers and have saved a bunch of money on bottled water.

 

Also, it's awesome that your employer puts 12% into your 401k ..

a typical match is 50% up to 6% of an employee contribution.

 

I noticed you have $600 for savings, I think I'd be putting all or at least half of that into a Roth IRA instead of a typical savings that usually makes very little interest. The contribution portion of money put into a Roth IRA can always be withdrawn at any time.

I use my Roth as my emergency fund account...

I wish I would have had a tool like CB back when I was your age.

 

Just my 2 cents

Edited August 25, 2011 by Cactus Flower

[Baddies4Breakfast]

* Car insurance is a little cheaper if you pay 6 months at a time instead of 1 month.

* Grocery bill can be a little lower with some effort.

* Electric can definitely be lower.

* "Beauty (nails, hair, etc.)" $100 and "Clothing/shoes/accessories" $100 can be cut a little bit (actually a lot can be cut here).

* Cut cable completely and just get an antenna (free local HDTV) and watch TV online more. Or go all out and stop watching TV (I've done this for the past few years.)

* Cell $85 can be cut if you're off contract. I pay $15/month for Net10 prepaid, and I have 2 cells, so about $30/month + tax.

Edited August 26, 2011 by Baddies4Breakfast

[Cactus Flower]

* Car insurance is a little cheaper if you pay 6 months at a time instead of 1 month.

* Grocery bill can be a little lower with some effort.

* Electric can definitely be lower.

* "Beauty (nails, hair, etc.)" $100 and "Clothing/shoes/accessories" $100 can be cut a little bit (actually a lot can be cut here).

* Cut cable completely and just get an antenna (free local HDTV) and watch TV online more. Or go all out and stop watching TV (I've done this for the past few years.)

* Cell $85 can be cut if you're off contract. I pay $15/month for Net10 prepaid, and I have 2 cells, so about $30/month + tax.

 

 

 

cable is hard to live without. If you don't have a variety of things to watch on tv, then you entertain yourself other ways like shopping, movies and things that wind up costing more money than the cable bill.

In some places antennas don't work very well, or at all. Bear in mind, OP says they are "single".... so there's no one to play cards, or checkers with.

 

I only pay an extra $1 a month to put my GEICO policy monthly instead of paying all at once.

I don't think $12 a year is excessive ;-)

Edited August 26, 2011 by Cactus Flower

[TroyP]

I worked for a courier company in college (we delivered super urgent packages in small cars and vans), where saving on fuel costs was important to our bottom line. They brought in a consultant to teach us how to drive more efficiently.

 

Because of the physics of driving, doing 75 MPH on the highway burns substantially more fuel than doing 60 MPH. Much of my personal driving is highway, and I've seen a substantial improvement in my fuel consumption by slowing down. I tend to have a lead foot, so I've found setting the cruise control at 62 MPH saves me a fair amount of gas.

 

If you watch closely, you'll also notice many people have a "gas or brake" mentality when driving. It isn't uncommon to see someone who has their foot on the gas as they approach a red light several hundred yards away, only to switch right from the gas to the brake as they approach the light. This is doubly inefficient. By looking down the road and identifying the red light ahead, one can take their foot off the gas and coast towards the light, allowing wind resistance to naturally slow your car, and gently applying the brakes as you approach the light. Doing this saves fuel (when you apply the gas, obviously you're using more of it than when you're coasting), it also saves your brakes, since it puts more wear on your brakes to stop your car from 50 MPH in a short distance, than stopping at 35 MPH from a longer distance.

 

I've found that most people learn to drive reasonably safely, but few people have learned how to actually drive well.

 

Now, will that save you a ton of money each month? No. But you'll save some on gas every month, plus you'll be putting less wear on your car, which will help cut your maintenance costs, and you'll be driving safer, which can help you save on insurance over time.

[bjk123]

If your apartment doesn't have a ceiling fan, you might want to check with your landlord. Some apartments are already wired to handle them and in those cases landlords are willing to let you add one as an extra to the apartment. Adding one in my townhouse bedroom greatly reduced my cooling bill in the summer.

 

If you have windows that get a lot of sun, blackout curtains that are closed when you aren't home will also reduce the cooling bill. Just make sure that you open them when you are home so that you are using the free light.

 

$250 a month for food and toiletries would be high for my area, but you may be living in a higher cost of living area. Have you checked to see if Angel Food Ministries operates in your area? Since the boxes are designed to feed a family of 4, I usually split with a friend, but it's still quite a savings on groceries if you will eat most of what is in the box. For food and toiletries, check to see if any of your local TV stations are running a smart shopper blog. The one in my city basically takes the circulars from all the local food stores and pharmacies and puts all the info in one place along with coupon info. By planning ahead a little bit, I can get most of my toiletries as well as shelf stable food items at about 50-70% of normal price.

 

Can you start doing your own nails and leaving the mani/pedi for special occasions? That might save you a few bucks too.

[That Girl From ATL]

Do you need $100 worth of clothing/shoes/accessories every month?

There are plenty of months I spend nothing in that category.

I color my own hair and do my own nails - so I don't personally have that expense either outside of an $8 box of hair color.

 

I can't say what groceries and toiletries cost in your neck of the woods, but I don't spend that much either.. probably closer to $175-$200... however I eat a lot of weekend meals at the folks.

 

Periodically shop your auto insurance (just bear in mind they typically pull your credit for that)

 

Electric, yeah you might be able to shave some off that... be aware of times when the tv is on and you aren't watching it, turning lights off in rooms you are not using.. slowly transition over to CFL and/or lower cost LED lighting. My average bill for a 1400 square foot home in Phoenix is $95 a month.

 

I purchased one of those Brita filtered water pitchers and have saved a bunch of money on bottled water.

 

Also, it's awesome that your employer puts 12% into your 401k ..

a typical match is 50% up to 6% of an employee contribution.

 

I noticed you have $600 for savings, I think I'd be putting all or at least half of that into a Roth IRA instead of a typical savings that usually makes very little interest. The contribution portion of money put into a Roth IRA can always be withdrawn at any time.

I use my Roth as my emergency fund account...

I wish I would have had a tool like CB back when I was your age.

 

Just my 2 cents

 

Thanks for the great tips.

[saladdin69]

I'm a guy so 100 for hair and 100 for cloths just flashes waste to me. But again, I'm a dude.

 

But I will say, shop at goodwill. I may spend $300 a year on cloths and I have an "office" job.

 

The hair I do get. You can't buy electric clippers like I have.

 

I would drop the legal plan and the gymn unless it is on site with showers and you can go before work ( to save on gas driving elsewhere). I go to a local community center to workout.

 

I dry my towels and workout cloths on a cloths line, saves electricity.

 

I always shop car insurance every 6 months.

 

Drop cable, keep net and go with netflix. If you live in a larger city you can get local channels over the air.

 

Get a programmable thermostat. I save hundreds by shutting off heating/cooling during the day when not home.

[That Girl From ATL]

^Yep...I already shop at Goodwill.

 

I'm a thrift store junkie...