2011 Budget
I’ve found that over the past year, I had great intentions of following a budget, but never followed through.
While I’m typically not one to go out and just ‘buy’ things for the sake of buying them, I did manage to blow upwards of $500/month dining out for lunch and dinner – something that I’m going to change.
In 2011, my goal is to turn this around by actually packing a lunch and cooking dinner regularly, so that I can use the money instead to pay off my student loan (~$10,000) and max out my RSP contribution (~$10,000). I think its a pretty safe thing to say, that killing off my debt, and saving for retirement, is more satisfying than a half-cooked, over processed, foot long sandwich from Subway.
On top of that, I’m going to be more conscious of where I spend a month in general — not to a detailed level like some do, but in broad buckets. If I manage to stay within them, I’ll be on track to meet my above goals.
Monthly Income is roughly ~$3,400 after taxes
2011 Spending Budget (per month)
- Home Basics: $1,100
includes Rent, Hydro, Cable, Internet, Insurance, Cell Phone - Groceries: $250
currently spend ~$75/week, but expect to go up since eating at home more - Dining Out: $250
still a lot, but this is half of what I spent before - Convenience Items: $100
wide bucket, includes stuff like coffee, pop, snacks, transit passes, personal care, etc. - Entertainment: $70
fun stuff, movies, music/app purchases, etc - Other: $200
for anything random that comes up or is not covered above
Total: $1,970 /month
2011 Savings / Debt Repayment (per month)
- Student Loan: $600
currently sits just below $10,000 - Retirement Fund: $600
part of this will be withdrawn for down-payment for a home in next few years
Total: $1,200 / month
(this level amount alone doesn’t reach the $20k needed to pay off my student loan, and save $10k, but my annual bonus and tax return should bring me over the top)
With this budget, I don’t use up my entire salary to live — but gives me a general idea of where and how much money in each bucket I should be spending. After all of that, I still have ~$250/month remaining for my own choosing — likely, I’ll save this for a couple planned expenses down the road, like a new MacBook and TV.
Does this budget sound reasonable? Anything major I’m not considering?
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Hey! I really enjoy the layout of your site and obviously the topic is something I can relate to, since I am in the same position and all. For me the key thing to remember is to eat at home, as this always provides a double benefit: 1) I save money; and 2) I eat healthier/maintain my weight/etc.
Please email me at webhost@brokeprofessionals.com and let me know if I can put your blog on my blogroll. Thanks again and happy holidays.
Looks good!
You’ve broken everything down into very specific categories
Good luck with sticking to your budget!
I used to eat out a lot too, but now that I have this mortgage, I’ve cut it way down.
Great detail and goals on your budget. To this day, we still don’t have a detailed budget. It’s probably my biggest disappointment so far from a personal finance standpoint.
Just bookmarked your website.
I also have a detailed budget and keep track of it monthly. I have been tracking it for 2 years now and it really helps cut down expenses.
I think you could still lower your eating out costs.
By the way, I don’t see any car costs/ gas in your budget. I assume you don’t have a car? Also, where do you put your clothes expenses?
I live in the downtown core of a major city — so everything is within blocks. I walk, or take public transportation in the rate instances I need to. I slip that under the miscellaneous extras. For clothes, your right — it is missing. Those, I typically am pretty good an not spending much on, and just see that as a sunk cost. I buy what I need.
I tried to set up my budget around particular goals (like saving money), and habits I want to fix (like dining out too much) — there’s some extra money not used up in this budget, to cover anything else I missed like clothes.
Finally, someone with a realistic grocery budget
I get so tired of reading American blogs where people seem to be able to feed themselves on $20 a week. We spend around $130 a week, sometimes more (occasionally a little less) and we don’t eat all that fancy.
I don’t think there’s particularly a problem eating out if that’s where you’d like to spend your money and you’re still able to achieve your goals. Going to restaurants is often a social activity with friends or family, and I don’t think that expenses should be cut to the bone if they really don’t need to be. You’re not in a dire financial situation or anything. Now, if you carrying credit card balances and they kept growing, then obviously you’d need to really cut back the eating out. I’ve found that eating at moderately priced places doesn’t cost me a majorly significant amount over what it would cost me to feed myself at home. I’ve found that often times going to a restaurant can cost me as little as $5 over what it would cost me to feed myself a similarly good meal at home, in which case I find the money worth it to not have to cook and clean the dishes. Plus, it allows to me to not miss out on what it a social activity for many people.
Thanks for the comment! I agree — I’m not willing to cut out eating out completely, but needed to tone it back. Having lunch out EVERY day, was costing way to much. So that got scaled back, but I’m still going to go out with friends for a nice dinner or a lunch whenever.
What software do you use to track your expenses and generate your budget?
Right now, its a bit of a spreadsheet. I’m also using Mint.com right now, for the broad buckets of my budget — all of which, I can see on my iPhone. I’m liking it thus far!
Emergency fund
It’s the only thing I see missing in your budget.
Other than that, great job!
Thanks for the comment. I have an emergency “strategy” rather than an emergency “fund” per se. I’m actually working on a post about it as we speak