Changes to the Budget
April 9, 2011 2 Comments
I figured out a new budget for furlough, but it is super tight. I reduced my debt payment down to near minimum and also took away a lot of my discretionary spending like entertainment and clothing (and a reduction on pretty much everything else).
Now that I have the guarantee of an income this summer of $3,500 (before taxes, of course), I’ve decided to change my furlough budget again.
What I’ve decided to do is reduce my contributions to my savings on things that I won’t need between now and my first paycheck at the community college and then reinstate my spending categories.
Then the first paycheck I get from the community college I’ll repay the money to my savings that I used for spending.
So here is how it looks in excel format:
I’ve highlighted in yellow the things that have changed between the budgets. First you should notice that the overall totals for both furlough budgets are the same. So here are the explanations:
- Pet vaccinations – I have reduced this since I know I won’t be paying for any vaccinations until August, by which point the money will be added back.
- Insurance – I reduced this as I just paid my car insurance last month, so I won’t have to pay it again until August. Also I don’t have to pay renters insurance until August either.
- Christmas – I left this because I’m going to use it as a gift fund and I’m going to a wedding in June.
- Gym – I have already used it this year, so I don’t have to worry about contributing to it until I can pay it back.
- FPU – Same as the gym, the money is already spent, so I don’t have to worry about the expense coming up in the next few months.
- Credit Card – I reduced it a lot with the furlough. I have increased it now instead of contributing to savings goals. Still not as high as I would like it but I like that I’m paying more than the minimum.
Variable Expenses Category
- Food – I initially decreased my food. This has been VERY tough. So I’m going back up to $400.
- Clothes – Not a big deal, but I’d like to have some money available in this envelope to buy some dress shirts for summer teaching (most of my teaching clothes are for cold weather).
- Entertainment – Okay, going from $40 to $0 is hard. Movies? HELLO… Okay, so I gave myself $20 so Mr Hive and I can see a movie every once in a while if we’re so inclined.
I will have this new budget in effect for 5 paycheck (2.5 months), so I’ll have to pay back my savings 2.5 months for each of those categories which means:
1 month decrease: $105
2.5 month decrease $262.50
That isn’t a huge deal, especially since I know that I will absolutely get this in summer income.