Here is our budget numbers for the end of 2003. These numbers are only for the end of the year. The first half of the year our budget numbers where the same as what we posted for 2002. You can go back and check out our 2002 Budget to see those numbers. These numbers where compiled for our actual purchases for the last four months of 2003 to be exact.
Our goal has always been to save 50% of every penny we made since graduation. Needless to say we were a little disappointed after compiling these numbers. We missed the mark big time.
The two reasons we were not able to save what we wanted:
- Babies are expensive. I am not trying to say anything about waiting to have kids, or putting off having children until you are more financially stable. Having my oldest daughter was one of the best things that Corinne and I ever did. But others still may ask if we really wanted to save 50% why did we have a kid? It is true we would have been able to save much more and have a dual income on top of it if we did not start having kids. But looking back at it all, when I first found out Corinne was pregnant that was so incredibly motivating for me to do something more. That was the motivation I needed to find ways to earn more. If we never get pregnant I don’t think I would have bothered flipping cars or possible started the business when I did.
- The second was the house, another big expense. When comparing renting verses a mortgage there is so much more that needs to be considered. I know I initially just looked at how much we spent on rent compared to a mortgage and it was only about $400 difference. What I missed as all the additional stuff that comes with a home. As you can see in the budget below there are a lot of extra line items now associated with owning a home as well all the utility bills are higher in a home verses an apartment.
Here are the numbers-
Gross Income: This is the monthly income we had before anything was taken out.
Taxes/benefits: This was the total amount taken out every month for all that government stuff and insurance.
Net Income: This is the take home amount. The total amount I actually see.
Mortgage: Check out our post on purchasing a house. What you see here is the total amount, including first mortgage, home equity loan, and all county and school taxes.
House Insurance: New expense that comes with home ownership. You gotta insure your house.
Water, garbage, sewer: Another new expense for homeowners.
Electric: It went up from when we lived in an apartment, but this was still very low.
Gas: Also went up compared against living in an apartment.
Cell Phone: This was starting to become a business item for me; I was so stupid to not start taking advantage of all the tax write-offs for my business early on.
Phone/internet: Our business wouldn’t have happened without internet.
Student Loans: We had to start making payments on our loans 6 months after graduation.
Car Insurance: This went up and down a lot through the year as I was flipping cars, but right before we purchased the house we only had one car and this number dropped. I paid six months at a time so it was credited back in, so this should have been lower but it was weird to figure out.
Gas: After our daughter was born, cost of a baby, we stopped a lot of the road trips, but the house we bought made for a further commute.
Groceries: I am not sure if we were eating better or if my wife was just eating more since she was still nursing, but this is up from last year.
Entertainment: After the house and the new baby we did not go out as much, so this was a few pizzas basically.
Target/Walmart: These are stores we never really went to before having a house and kids. Pretty much all of this is baby stuff and home stuff, all those monthly things you need like diapers, and the unexpected things you had to get like a ladder.
Clothing: Pregnancy, Corinne couldn’t just walk around in my clothes all the time.
Misc: All those random things like prescriptions, car parts, Lowes stuff.
Tithing/Charity: Both Corinne and I always paid 10% toward tithing since we were young. We have always done this and will continue to do this in the future as well.
Savings: So sad, we saved nowhere near where we wanted to. But do keep in mind our business was going at this point, starting a business.
So there it is for your viewing pleasure. Let me know what you think.