March 2019 Expense Update

Sit back, relax, and grab that cup of coffee. It’s time to track how your money is flowing. Tracking finances has become much more enjoyable thanks to free online software’s like Personal Capital and Mint.com. I still remember using MS Money and Quicken to track my finances. You had to purchase those software for over $100 for the business pro versions in which I religiously purchased every year. Those software’s would get an update once every year but if you wanted the updates you were required to purchase the whole software again. It’s amazing how much have changed and how we benefit from the technological advances.

Today, I use Personal Capital to track all my finances including my investments. The software is by far the best free software in my opinion.

The importance of understanding where every dollar went was crucial to reaching F.I.R.E. (Financial Independence Retire Early). The tradition of reviewing my expenses at the end of every month is something I grew to enjoy.

So without further ado,

 

Expenses

Taxes: $3034

Shopping: $371

Utilities: $350. Weather in Southern California is amazing once again.

Groceries: $343

Home Improvement: $275. This was for replacing six old 4” recessed lighting cans to 6” cans in order to use standard size LED bulbs rather than those annoying MR16 bulbs. My home is an older constructed home with some lighting that needs a little modernization. These 6 were the last of the lighting upgrades in the home so the home is finally 100% standard bulb size LED. The price for the job was a steal also!

Restaurant: $272

Service Fees: $134. One credit card (Gold Delta Skymiles) has an annual fee of $95. I opened this card during a promotional offer for Skymiles. I still have $530 worth of Skymiles I need to use before I cancel this card. Vacation ideas anyone?

Mobile Phone: $131

Auto (Gas): $114

Internet: $104

Entertainment: $100

Auto (Maintenance): $50

Landscaping: $40

Postage & Shipping: $27

Subscriptions: $24

Insurance: $7

Parking: $2

Total: $5,374 (175.5% Increase from prior month)

 

Conclusion

This month, had a large rental property expense in total of $1,350 for a roof repair. The contractor seems to have not made the deposit which is not being reflected in my expenses for the month. Looks like that will carry over to the next month. These unexpected expenses are the reasons why everyone must have an emergency fund in place to protect your investments. If you have rental property, I recommend you add few more months of funds to cushion for those unexpected expenses.

Overall, my expenses were in line with expectations. Having good projections on how your expenses will be in the months or even years ahead is important. Personally, I project out to around 5 years just so I can calculate how my earnings must grow along with inflation expectations. Adding some variables of unexpected life events here and there. It helps me figure out what moves I must make in my life well ahead of such outcomes.

Another month in the books! Thank you for reading.