January Expenses and The $40k Challenge
Written by Matt
Starting off 2018 we decided to take a challenge to spend $40,000 this year. We talked about it a lot last year and it will mark a pretty significant reduction in our total spending (we spent about $65k last year).
We have a lot in store for 2018 (which we will be sharing soon!) so it will be interesting to see how it all shakes out. We decided we would post here for all of you to help keep us honest and accountable! It's really amazing what diving deep into your finances can do for your spending. Especially when the idea of buying that thing is rolling around in your head but you know you'll have to post about it later for all to see... It's some serious spending inoculation.
Our January Experience!
We haven’t put up our travel post quite yet, but we spent our Christmas and New Year in Iceland! We travel with my mother and sister during the holiday season and we alternate going to a warm and cold place (this was our cold year!) We traipsed around a frosted Iceland admiring many glaciers, ice caves, waterfalls, and some northern lights to boot! It was an awesome trip with some amazing scenery and it really let me flex my photography muscle with was pretty fun. Hopefully, you follow me on Instagram so you can see the glorious pixels.
After New Years we parted ways with my mom and sis. Allison and I took off on the second leg of our journey to Berlin and Prague. We spent another 9 days between the two and we’ll have a more detailed travel post to show you where we went and what we did.
The short and sweet of it is we checked out all of the World War II history and lots of relics and information about the Berlin Wall. It was fascinating to get a deeper look into what it was like to have lived in that area during that time. Hard to comprehend but good to remember and honor those who were involved in that struggle.
We hopped a train to Prague and truly adored this city. It has so much character and it's soooo Old. Everything is so beautiful and there is so much history about each and every building. We mainly took free walking tours around the city which were a great way to see everything and learn about the history at the same time. Everything in Prague was really cheap too so it was a great place to balance out Iceland (Expensive!!), Berlin (Average), and Prague (Cheap!!). Also, Czechs love their beer! I had one at every meal I think and they never cost more than ~$2!
We got back on the 10th so about half the month we had travel costs lumped into our budget which made it a little tougher to hit our target but we still ended up way under!
Mortgage: $2,090.74 – This is up $190 from December! Our property re-assessment finally hit from when we bought the house (18 months later?) but our taxes jumped by over $2,000 per year. Insane right? Luckily, we house hack our current home so while this number Is big, we really offset the majority this with incoming rents most months. We also pay an extra $300 per month towards the principle so we could bring this down a little bit if we wanted too.
Roommate Income: $1,958 – We rent 3 of our rooms out in the house. We purposefully bought this house so that we could live almost or nearly for free. It was working a little better before the jump in taxes… Even so it definitely cuts down a big chunk of our housing expenses!
Net housing cots: $429.09 (plus we built some equity in there!)
Travel: $1,156.13 in Jan, $1,479.22 in Dec. we got a check back from my mom and sister to settle up and that worked out to $1,377. Total spent on our trip was $1,258.35 over two months. (this doesn’t include flights or some hotels that we booked ahead of time!) $629.17 per month! Not bad since Iceland is crazy expensive. We will post a breakdown of all the costs of that trip in our travel post!
Groceries: $300 – This was literally one Costco Trip after we got back from vacation.
Gasoline: $115.41 – Very good month since we were out of the country for half of it.
Supplements: $69.95 – Our health is super important to us. We got this one supplement based on a recommendation on a podcast. Restore. It's supposed to help maintain your gut lining and be a defense against gluten and other irritants that can cause leaky gut. It helps you absorb nutrients more efficiently and overall assist your microbiome to thrive.
Auto Insurance: $60.33 - Just mine. I pay monthly, Alli pays every 6mo. I drive about 100miles a day right now so my insurance is crazy. I also have coverage up to 300k so our net worth is protected if someone sued us!
Paychecks: $8,792 – This is pretty self-explanatory. We worked or used paid vacation for our travels in Dec/Jan so we still got paid! If you're new to the blog both me and Allison work for oil and gas companies in Bakersfield CA as engineers. I’m a mechanical engineer and I maintain and do project management for my companies treatment facilities and Alli is a petroleum engineer who manages subsurface equipment and production. The jobs pay great but it's not all sunshine and roses.
HSA Contribution: $2,376.92 - My work puts $2,000 into an HSA each year for me. It helps to cover our deductible since we carry a high deductible plan which saves the company money due to Obama Care. So it’s a way they incentivized us to move off of the “Cadillac” health plan we had previous to 2015. I also contribute the maximum I can so a total of $6,350 this year or $376 per month.
401k Contributions: $1,572.43 - I think this missed the second deposit because of the timing of my paychecks. So Feb. will likely be higher. Both Allison and I max our 401k contributions each year and then our employers have a 4% and 6% match which goes in on top of our $18,000.
Dividends: $206 - Most This may have bled over from December as that’s when the vast majority of our dividends are distributed. All of them are reinvested but it still helps to build the account!
Thanks for reading! This is the first post we've put up bearing all of our financials. I know I've always enjoyed reading about other peoples financial experiences so Leave us a comment and let's continue the conversation!