31 Aug
Budget Category Update
Now that we’ve paid off one of the cars, we get to tweak our budget categories as follows:
- Committed Expenses: 72% (down from 75%)
- Fun: 4.16% (down from 5%)
- Irregular Expenses: 5.55% (up from 5%)
- Savings & Debt: 11.09% (up from 7.8%)
- Retirement: 7.2% (no change)
Basically we’re taking a little bit from the old car payment and putting it toward Irregular Expenses and the rest is going to Savings & Debt. We’re also knocking fun down a bit so we can put more toward Savings & Debt. The odd percentages are to put even amounts of money toward things (I like round dollar figures).
As more debts get retired these numbers will continue to change until we can hit our targets. Our #1 financial goal right now is to get rid of all debt except the mortgage as quickly as possible. Progress is being made!
Wow, great job! I just adjusted my income allocation (which is what I like to call my budget) this week as well.
I’d be careful about decreasing fun money too much, though. If it were me I’d feel deprived after awhile and end up spending half a paycheck on shoes or something…but then again, that might just be me.
August 31st, 2007 at 12:23 pmIt only amounts to a $75/month decrease and since we’re coming to the end of summer my golf expenses should go down
I agree though, we don’t want to tighten up too much. If all goes well we’ll crank it back up in a few months.
September 1st, 2007 at 4:18 pm