A Story About Paying Off Debt and the Obstacles Along the Way


May 2018 Budget: Ramping Up Our Emergency Savings

I'm about 10 days behind schedule in posting the May budget, but late is better than never!

This month is shaping up to be pretty standard (aka boring) from a budgeting standpoint. Most of our line items reflect recurring fixed and variable expenses. The only real one-off here is the kitchen table, which we've already purchased, assembled, and started to use. The card table was working okay for meals, but it wasn't particularly comfortable for doing homework or just hanging out. The new one is much sturdier and more user-friendly.

One note about the table: Although it was somewhat expensive, I'm willing to make that work because I'm tired of buying crappy furniture. I'd rather pay more for something that will last than spend very little on something that will fall apart next year.

Another item of note: for the next couple of months, we've limited debt repayment to just over the minimums and will be dumping more into savings. Medical expenses explain part of this. Although I hope to cover most of the bills through our HSA, there's a chance we'll need to dip into savings. I don't want to put any of these payments on our credit cards (well, unless it's for the travel points, but in that case we'd want to pay it off immediately).

But aside from that, I'd feel more secure if we had $3000 in our emergency savings fund. I don't want us to get derailed by the unexpected. (Can you tell that our recent medical emergency has left me feeling skittish? It has!) We're about 2/3 of the way there. Once we've hit that benchmark, we'll return to larger payments on the credit card, which we're still hoping to pay off by the end of the year at the latest.

Lastly, I've increased my HSA contributions by $100 a month. Not only will this help us pay off those hospital bills, it'll be beneficial from a tax standpoint.

May 2018 Budget:

Recurring Fixed Expenses:
  • Rent: $2100
  • Health Insurance: $207
  • HSA Contribution*: $260
  • Retirement*: $282
  • Student loan and credit card payments: $1000 
  • Phone bill: $78
  • Internet: $65
  • Auto and renter's insurance: $73
  • Thousand Trails: $108
  • Netflix: $13
  • Fortysomething classroom budget: $40 (money for classroom supplies)
Recurring Variable Expenses: 
  • Utilities: $165
  • Groceries: $775
  • Gas in car: $50
  • Very Expensive Feline: $125 (higher this month due to upcoming checkup with vet)
  • Savings: $500
  • Miscellaneous: $350
One-Time Expenses:
  • Table: $480
Total budget for May 2018: $6,671

*Not including employer contribution

1 comment:

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