Financial independence is really important to me and it’s my main financial goal. Part of that includes tracking my expenses and investments to make sure I’m on track in meeting that goal. For the option to retire by the time I’m 50 (11 years from now), I’m aiming to save 70-75% of my take home pay to ensure a large enough cushion to live comfortably in retirement. To maintain some privacy, I’m going to list these in percentages, rather than dollar amounts.
Fixed Expenses: These costs include my association fees, phone, internet, gas, electricity, water, etc. For August, fixed expenses equated to 10% of my take home pay.
Variable Expenses: Somewhat easier to control month to month, this includes gasoline, groceries, home supplies, clothing, restaurants, entertainment, etc. For August, these made up 19% of my take home pay. A little higher this month since I started booking tours for an upcoming trip.
Investments: This includes any money transferred to savings accounts, Roth IRA, brokerage accounts, and my 401k. This makes up the remaining 71% of my take home pay. My employer has a 401k match, which I’ve excluded from this percentage.
How was your August? Any challenges?