Lanny’s September Income and Expense Summary

Another month has passed, another month where I ask myself… Did I hit the 60% savings goal with my income and expense tracker?  Did I hit the big mark that I set for myself in August when I was discussing why I am aiming to save 60% of my income?  I know Bert did extremely well, saving almost 50% of his income for September.  C’mon Bert, step your game up, you have someone to split your income with and you can’t save 50% of it, weak, right?  Joking, he did extremely well as I’ve said, now let’s see how I performed in my balancing of the income and expense categories. Income and ExpenseLast month I was able to save a whopping 54% of my income, even with all of this hiccups with my car and other non-expected/planned events.  When you do receive these unexpected events, it’s funny, because they are usually for reasons that don’t make you happy – tickets, car batteries, replacement parts for a computer, tires, dry cleaning, etc..  These aren’t necessarily things you call and want to say “hey Bob – I just bought a new car battery!” or “Whoa – this dry cleaning, wow, so amazing Jill!”… maybe you do?  Maybe I’m wrong?  Either which way, tracking the income and expense categories every month really drills down to where you can find improvements, to have more cash to invest into dividend paying stocks!

This month was far from ordinary, let’s see the breakdown:

Income Summary

Salary – 87%

Other – 13% (Received a check from giving out my hilton points back in March, sold gift cards, swagbuck $25 paypal redemption)

Expense and Outflow Summary

Household 20% (Mortgage + escrow, Utilities, plumber tape)

Transportation 13% (Auto Loan, Insurance, Gas, new tire…, brake light bulb, taxi, rapid passes)

Health 4% (health insurance, gym)

Food 3% (Grocery Stores, coffee shops, restaurants)

Entertainment 2% (Netflix, Bar Scene, comedy show)

Charity ~1%

Clothing ~1%

= SAVINGS ~57% = This includes automatic savings from my pay to my online account, extra savings transfers to my account from this months income to my accounts + automatic 401K contributions)

Income and Expense Conclusion/Results

Well, as I posted earlier, there are definitely endless liabilities to owning a car.  This month, of course, did not seem to amaze, but a new $96 tire was added onto my car.  That is tire #5 in 5 months, awesome, high five? Nope.  I had a great experience with NTB.. well, let’s say that there wasn’t an exact match to my tire.  Further, he was trying to sell me a tire that cost $150 and I compared it to a similar class/specification tire they had (this was a more well-known name tire) – such as tread, level, mileage expectation etc and the tire I came across was $90 less taxes.  So naturally I went with the $90 tire because I did not see any further benefit of spending almost twice as much for the same tire?  Obviously the commissions and moving a higher priced tire is in their best interest, but what about the consumer?  What about doing what’s best for the consumer?  Don’t they want my repeat business?  In my current role, I would be buying a new set of tires projected in 2016 – wasn’t giving me the best tire for my position now, worth the $400+ in the future?  He wasn’t thinking right and only thinking short-term.  This added almost $100 to my expenses.

Transportation also has led me to further rapid rides downtown ($2.25 each way).  However, the one night I stayed out much later and it cost me a $31.50 cab ride back home, ouch.  Conclusion: Don’t stay out as late, get better sleep, drink less expensive items at the bars = save more money.  Glad I went through that experience and it makes more sense, as it actually is a much healthier lifestyle, and going to bars is a lifestyle I definitely am comfortable phasing out of my life, outside of certain circumstances (Birthdays, Bachelor Parties, etc.).  This will reduce my expenses and increase the healthy lifestyle that I tend to live.  I will work at implementing this more and more going forward.

Also to note, my auto insurance will be cheaper for the next 6 months since I raised my deductible.  I’m pumped – it’s going from approximately $95/month to $76.33/month or a 19.65% decrease!  That will be nice for this month, as in an unrelated note – September had an increase in my escrow for my house from $337.28 to $407.55… thanks property tax increase, you’re the best!  Shaking my head, but I think this was due to a shortage in my last escrow analysis, so I will let this go for 3 months and then have them do another analysis to see where I’m at.  I traveled quite a bit as well in the month of September, so my utilities, I am expecting, are to be very low (gas & electric).  I more than likely will receive my Water & Sewer bill in November that entails the 3 months previous.

All in all, I am excited about being able to save 57% of my income.  The Income and Expense, the what came in, the what went out — it is all very interesting to track.  I know going forward, this is my gameplan:

  • Drink Less when out
  • Call it a night earlier, unless it is an “epic” time
  • Drive less (less to spend on gas, oil change, tires, brakes, etc.)

Doing these simple, no brainer-items, will help push me to the lofty 60% goal.  We are only 7ish days into October and there are three weeks to tweak the month and buckle down.  I already know I had a larger miscellaneous expense, but I’m used to having these so it’s to make sure I keep other items in check.  Having this extra savings allows me to purchase dividend stocks, which allowed me to receive over $600+ in dividend income last month, and I will reinvest those dividends in my pursuit to financial freedom!  How did everyone else do?  Anyone else interest in the challenge?  Where do you see where I am failing at in my tracking of my September income and expense?  Thanks all, talk soon!

-Lanny

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15 thoughts on “Lanny’s September Income and Expense Summary

  1. Lanny – I know you didn’t reach your 60% goal but you should definitely be proud of saving 57% of your income. Even with the unexpected liabilities related to car ownership, you were only 3% shy of your goal. Way to keep the rest of the expenses down. Keep up the good work. Best wishes and ongoing success on your journey! AFFJ

    • AFFJ,

      Thank you… so close and getting closer. Thanks for all of the help and support. How did you do? Any hiccups this month? I have been so busy at work I haven’t been able to spend much time online. Thank you again for stopping by to check out the month!

      -Lanny

  2. Congratulations on a strong September, even with the headwinds of dealing with car expenses. I’m sure given some of the “lessons” learned during the month you will be able to hit the 60% mark in October.

    • W2R,

      Thank you again. I am learning for sure – October is here, but had a wedding I went to already… :/ joking, because it is well worth it. I am looking forward to see where I am at mid month. I travel a lot coming up, so that will keep my expenses as a minimum. Thanks W2R, talk soon!

      -Lanny

  3. 57% is very good and you should be very proud to achieve that number. I wouldn’t be too disappointed with not hitting the 60% mark. Keep up with the good work!

    • Tawcan!

      So darn close. Somehow, someway, 60% is that seductive figure that seems to be close, but just not enough. This month, right? This month. I am going to have to celebrate somehow, for free haha, if I hit the 60%. Maybe I can have Bert buy me a beer… haha joking. Thanks again Tawcan for rolling on by!

      -Lanny

    • FF,

      If not this month, WHEN!? Joking, in all seriousness – so lucky to be able to save this much money. One thing I will say with public accounting – I travel so much that I rarely spend anything. However, as I’ve stated in the past – I would trade my traveling for a life of my own back at home. We shall see what October brings, I am out of town 2 weeks, which means paid for gas, hotels and meals – I guess that’s a good thing, right? Thanks FF, talk soon.

      -Lanny

  4. Lanny,

    Great savings rate this month. 60% is a tough goal – I’ve only hit it once on an annual basis. Hitting anywhere north of 50% on a consistent basis is, in my opinion, extremely impressive. That’s kind of the threshold where I consider someone an “extreme” saver, and should put you on the path to financial independence in 12-15 years.

    Keep up the great work. Only a couple of tweaks could get you to 60%, which would be fantastic!

    Best regards.

    • DM,

      Why is 60% so hard? Seriously, I feel like I am in a boxing match, the last round and I finally get knocked out, just as I was going with the roundhouse. The way I get to 60% = do something about my car. I know I was pumped up when you did your alternatives to transportation. My question would be – could you see yourself being without a car in Michigan? Probably not, as that is the reason why you have a car. I feel like the area you live in, is probably fairly similar to ours. We have public transportation, but it’s not that great, or convenient and doesn’t reach many destinations. This is the battle that I continue to struggle with, obviously, as you have seen in my last few monthly posts about it, as well as a whole article on driving. You went the right way with a car. I still have under $14K on a loan for a 2010 Honda Accord EX-L with now 65K miles on it. I know I can drive this puppy over 200K miles, but with all of the hiccups I’ve had… makes it hard to think it’s worth it. Thanks again for stopping by DM, appreciate it.

      -Lanny

  5. You hit an awesome savings rate. I know for many the holy number is 50% and many never achieve that so for hitting 57% you basically hit it out of the park in my book. Your post also reminds me and everyone else I’m sure about the blessings and curses that come with car ownership. The reality is that for almost everyone it is a necessity and trying to eliminate the expense often comes with great sacrifice. At least your insurance will be lower month to month going forward. Thanks for sharing.

    • DivHut,

      Took some blood sweat and tears to hit this target! I was pumped but am on a pursuit to hit that 60% target, it’s killing me! I am excited about the lower insurance premium, and as my car ages/pays down – this should only get lower. Further, I have a few weird items/points on my driving record that I believe fall off come next Summer & Fall, therefore – my premium should drop significant come this time next year. I am hoping in the $55-$65 range or essentially a $144-264 savings range for the year. The car itself isn’t bad, I think it’s just being at the wrong place at the wrong time with driving (random pot hole, taking people home from a bar driving on a oneway in the opposite direction, getting hit by a car that wasn’t your fault, etc..). Ah… the pleasures of driving a car. Here is to another month of saving and prosperity and another month to attempt the 60% challenge!

      -Lanny

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