Now that we are living on an annuity(like a pension) and 401K$ withdrawals(retirement savings), I am still going to keep track of our monthly spending and income, and hopefully we'll still be able to live BELOW our means and I'll have some leftover monies each month to tuck aside.
But this money leftover at the end of each month, at least for now(as we find our new financial "normal")won't be saved toward a yearly Savings Challenge.
The issue now is to cover all the bills with these two sources of income and not have to dip into the regular savings(that I built over the last 10 years)to pay our month to month expenses.
Since I got another nasty anonymous comment and another comment about how my accounting sucks and about how I am misleading people since I refer to the overage I carry over from month to month as "income"(and no, I don't believe anybody thinks this is true income but I do have to account for it, don't I?)I will handle it differently going forward.
And no, I am not trying to fool myself or anyone else with my monthly spending reports. I am trying to be as transparent as I can with how much is coming in and how much is going out. 8-)
On to the March 2018 report--
I had 2 goals for March......
The 1st is to actually finish the month in the black and not the red.
The 2nd is to try to have a little cash leftover at the end of the previous month to tuck back into a slush fund. This slush fun may be to apply toward unforeseen bills that are coming due in subsequent months, to spend on "extras/wants" during the year or to just sit there and grow until the end of 2018.
I have to report that we finished up March in the black.
The extra amount we ended the month of March with?.......$1,778.19
Income
The income in March---
* Monthly annuity payment of $3173.13(after tax withholding)
* RMSA(Healthcare account)reimbursement of $1813.48
* One third of 401K withdrawal balance for Feb. of $851.11 ##
* Interest earned on non-retirement accounts of $311.79
* Stock dividends of $98.07
Total Income for March......$6,247.58
## The balance of the 401K withdrawal($2553.31)got divided by 3 and gives us $851.10 in January to add to the income for the month(Feb. and Mar. will also get $851.10/$851.11 respectively)for general expenses.
Expenses in March---
* Healthcare Premium for March was $1813.48.
* Variable Expenses in March came to $2655.91.
Total Expenses for March......$4,469.39
$6,247.58-$4,469.39=$1,778.19 overage for March.
* Two Irregular expenses were due and paid-the Real Estate taxes and an Annual Sewage bill totaling $1802.53. These were paid out of the Sinking Fund which was $2858.76. SF fund remaining carries over into April in the amount of $1056.23 and there will be a deposit into it in April as well when we take the 2nd quarter 401K withdrawal.
The monthly overage will now be referred to as our "Slush Fund". I call it that above in my 2 goals I try to reach each month.
Think of it as a Short Term Savings we can draw on if our bills are high in any given month and the Annuity/401K draw/Interest/Dividends/Other Side Hustle Monies don't cover all the bills.
We went into March with $6422.92 in the Slush Fund.
Add in March's overage of $1,778.19 to the Slush Fund and it stands at $8,201.11 going into April.
Outgo
But this money leftover at the end of each month, at least for now(as we find our new financial "normal")won't be saved toward a yearly Savings Challenge.
The issue now is to cover all the bills with these two sources of income and not have to dip into the regular savings(that I built over the last 10 years)to pay our month to month expenses.
Since I got another nasty anonymous comment and another comment about how my accounting sucks and about how I am misleading people since I refer to the overage I carry over from month to month as "income"(and no, I don't believe anybody thinks this is true income but I do have to account for it, don't I?)I will handle it differently going forward.
And no, I am not trying to fool myself or anyone else with my monthly spending reports. I am trying to be as transparent as I can with how much is coming in and how much is going out. 8-)
On to the March 2018 report--
I had 2 goals for March......
The 1st is to actually finish the month in the black and not the red.
The 2nd is to try to have a little cash leftover at the end of the previous month to tuck back into a slush fund. This slush fun may be to apply toward unforeseen bills that are coming due in subsequent months, to spend on "extras/wants" during the year or to just sit there and grow until the end of 2018.
I have to report that we finished up March in the black.
The extra amount we ended the month of March with?.......$1,778.19
Income
The income in March---
* Monthly annuity payment of $3173.13(after tax withholding)
* RMSA(Healthcare account)reimbursement of $1813.48
* One third of 401K withdrawal balance for Feb. of $851.11 ##
* Interest earned on non-retirement accounts of $311.79
* Stock dividends of $98.07
Total Income for March......$6,247.58
## The balance of the 401K withdrawal($2553.31)got divided by 3 and gives us $851.10 in January to add to the income for the month(Feb. and Mar. will also get $851.10/$851.11 respectively)for general expenses.
Expenses in March---
* Healthcare Premium for March was $1813.48.
* Variable Expenses in March came to $2655.91.
Total Expenses for March......$4,469.39
$6,247.58-$4,469.39=$1,778.19 overage for March.
* Two Irregular expenses were due and paid-the Real Estate taxes and an Annual Sewage bill totaling $1802.53. These were paid out of the Sinking Fund which was $2858.76. SF fund remaining carries over into April in the amount of $1056.23 and there will be a deposit into it in April as well when we take the 2nd quarter 401K withdrawal.
The monthly overage will now be referred to as our "Slush Fund". I call it that above in my 2 goals I try to reach each month.
Think of it as a Short Term Savings we can draw on if our bills are high in any given month and the Annuity/401K draw/Interest/Dividends/Other Side Hustle Monies don't cover all the bills.
We went into March with $6422.92 in the Slush Fund.
Add in March's overage of $1,778.19 to the Slush Fund and it stands at $8,201.11 going into April.
Outgo
As for the expenses this March, here are the good and the bad side of things....
HERE are the GOOD THINGS
HERE are the GOOD THINGS
* Phone charges and internet were approximately the same as last month(Within $1 or so).
* The water bill was $14.66 lower the February.
* The electric bill was $27.94 lower than last month.
* The medical payments were $161.37 lower than in February.
* The LA house electric bill was $7.91 lower than last month.
* The health insurance premium was the same as in February.
* The water bill was $14.66 lower the February.
* The electric bill was $27.94 lower than last month.
* The medical payments were $161.37 lower than in February.
* The LA house electric bill was $7.91 lower than last month.
* The health insurance premium was the same as in February.
HERE are the BAD THING
* The gas card charges were $57.62 higher than last month due to Hubs trip to LA.
* The credit card bill was $236.05 higher than in February.
* The cash WAM withdrawals was $190 higher than last month due to Hubs trip to LA.
* The long distance phone bill was $1.80 higher than in February.
* Annual real estate taxes and sewage bill was due this month. Thes two irregular bills were paid out of the Sinking Fund account.
* The gas card charges were $57.62 higher than last month due to Hubs trip to LA.
* The credit card bill was $236.05 higher than in February.
* The cash WAM withdrawals was $190 higher than last month due to Hubs trip to LA.
* The long distance phone bill was $1.80 higher than in February.
* Annual real estate taxes and sewage bill was due this month. Thes two irregular bills were paid out of the Sinking Fund account.
So we end March in the black with $1778.19 in new general overage so once it goes into the Slush Fund that Fund goes into April standing at $8,201.11. ($6422.92+$1778.19=$8,201.11).
The Sinking Fund goes into April standing at $1,056.23.
FINAL THOUGHTS on March---No big charges I didn't know where coming in March and the "usual suspects" aka the variable bills were pretty low.
What I consider our "income" was the annuity and the partial 401k withdrawal of $851.11, and any interest/dividends/extra side hustle monies, so $4434.10 "income" for March. The Mar. variable bills(without the Healthcare premium which is covered fully by the RMSA refund)were $2655.91 so we had $1778.19 leftover from "income" when the month was over. If we can cover the bills(variable and irregular)each month with "income" leftover, this overage( Slush Fund)will continue to grow into the succeeding months.
THOUGHTS going forward into April 2018----This month there are two irregular bills due-our long term care quarterly premiums and these will be paid out of the Sinking Fund balance. Electric should continue to go down. The credit card bill will continue to be high(around $1500). Once we get Hubs eye dr. charges figured out(they insist on him paying when he goes even though the EOBs they submit to our insurance vary a LOT(on the low side)from what they charge him....it is a nightmare!)the month should be a good and ho-hum one for us. IF this house sale goes through in April all the better!! And we should come out on the other side of the tax season in the black with a refund so two things to look forward to resolving in our favor in April. 8-))
The Sinking Fund goes into April standing at $1,056.23.
FINAL THOUGHTS on March---No big charges I didn't know where coming in March and the "usual suspects" aka the variable bills were pretty low.
What I consider our "income" was the annuity and the partial 401k withdrawal of $851.11, and any interest/dividends/extra side hustle monies, so $4434.10 "income" for March. The Mar. variable bills(without the Healthcare premium which is covered fully by the RMSA refund)were $2655.91 so we had $1778.19 leftover from "income" when the month was over. If we can cover the bills(variable and irregular)each month with "income" leftover, this overage( Slush Fund)will continue to grow into the succeeding months.
THOUGHTS going forward into April 2018----This month there are two irregular bills due-our long term care quarterly premiums and these will be paid out of the Sinking Fund balance. Electric should continue to go down. The credit card bill will continue to be high(around $1500). Once we get Hubs eye dr. charges figured out(they insist on him paying when he goes even though the EOBs they submit to our insurance vary a LOT(on the low side)from what they charge him....it is a nightmare!)the month should be a good and ho-hum one for us. IF this house sale goes through in April all the better!! And we should come out on the other side of the tax season in the black with a refund so two things to look forward to resolving in our favor in April. 8-))
So how was your March financially?
Did you spend less than the income you had in March?
Did you stay within your budget or not?
What did you do with any money leftover at the end of the month?
Did you pay off any debts or put extra toward your mortgage principle or into savings, in an emergency fund or a retirement account?
Or did you blow it on a want?
Did you stay within your budget or not?
What did you do with any money leftover at the end of the month?
Did you pay off any debts or put extra toward your mortgage principle or into savings, in an emergency fund or a retirement account?
Or did you blow it on a want?
If you posted your financial progress on your own blog, leave a link in the comments so we can go check out your progress too and celebrate or commiserate with you!
Make this year was the one were you clean up your finances and pay off your debts.
Plan to set something aside if you didn't already or increased what you have banked now for your future self.
Or pay extra on the principle of your mortgage if your house isn't already paid off.
Live below your means and keep some change for a rainy day....because no matter how sunny it is in your life now, dark clouds come along and you'll be glad you have that umbrella to keep you dry.
Sluggy
Make this year was the one were you clean up your finances and pay off your debts.
Plan to set something aside if you didn't already or increased what you have banked now for your future self.
Or pay extra on the principle of your mortgage if your house isn't already paid off.
Live below your means and keep some change for a rainy day....because no matter how sunny it is in your life now, dark clouds come along and you'll be glad you have that umbrella to keep you dry.
Sluggy
