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I hope you guys aren’t getting tired of me starting almost every blog post by saying how excited I am, but if you are, I’ll get it out of the way fast.
I’m so excited!
This report closes out exactly seven months of saving for purchases that we put off while we were paying off our mortgage. Through home renovations, new furniture and decor, a new lawn mower, and setting aside cash for a new (very old) truck, we’re finally done.
We’re actually nowhere near done (is anyone ever done updating their house?), but we’re at a stopping point, and I am so excited to share the details of our new long-term goal with you guys tomorrow! Saving to purchase our first rental property with cash is going to be a long road with lots of learning, so be sure to subscribe for updates so that you don’t miss out on anything!
But until then, let’s get back to August.
This was an “extra” paycheck month for my husband and me. Because of that, we structured our budget a little different. We normally keep $1,200 of my husband’s biweekly paycheck in our checking account and transfer the rest of his check, as well as 100% of my paychecks, to our savings account. We wanted to take advantage of his extra check by sticking with the $2,400 per month that we’ve become accustomed to, but we didn’t want to go four weeks without replenishing our checking account, so we decided to leave $800 from each of his three checks and transfer the rest to savings.
It worked out seamlessly, but we still managed to go over budget from eating out way too much. We somehow spent over $600 in restaurants this month, which is absolutely crazy to me, but we only went over budget by a little over $100. We always keep a buffer in our checking account, so this isn’t really a big deal, but I can’t help but to think of all the things we could have done with the money that we literally flushed down the toilet. Food is such a weakness of ours.
Because we stuck to living on the same amount as we always do, we were able to live on only 28% of our income because of those extra checks. Since paying off our mortgage in January, we have saved about 40% each month. I remember reading those percentages in the ChooseFI Facebook group back when I first joined and feeling so blown away by those numbers. I still can’t believe we’ve reached the point where we’re now able to make it happen.
So, how much did we save this month?
$6,245.27! Can’t every month be extra paycheck month? The major purchase of this month was my husband’s lawn mower, so we’re coming away with $4,001.14. This amount will not go toward our next goal. Instead, we’re going to set it aside for the purchase of a truck and to pay for one more small contract with our contractor.
Alright guys, I’m going to cut this post short so that Ron and I can have our budget meeting. If you’re curious about our budget, you can click here to view the real, live budget that I update every weekday. Keep in mind that even though we bring home about $6,000-$8,000 each month, our budget is based on $2,400. If you like the template, you can get a free copy for yourself here.
August was incredible, and I’m looking forward to a long stretch of even more incredible months as we begin working on our next goal that will get us on the path to our ultimate goal – retiring early.
See you soon!