Financial independence is really important to me and it’s currently my main financial goal. With that in mind, I aim to spend an average of $1,500 or less each month so I’m able to invest and save the remainder. This equates to $18,000/year in total spending.
Just as I expected, April proved to be a costly month. Here are the details:
I spent $720 on fixed costs (e.g. association fee, utilities, insurance, etc.). My annual condo insurance bill was due and that cost $250. All other costs fell in line with what I expected. Next month I’ll be paying a full year of property taxes, so I expect this to be especially high for May.
I spent $1,388 on variable costs (e.g. food, gas, house supplies, gifts/donations, etc.). This was higher for April because I had to buy supplies for my diabetic cat, replace a broken vacuum, and pay some medical bills. The medical expenses was my most expensive category, at $310. The entire cost was paid out of my HSA.
The best use of my money this month? Taking my mom to tea service as an early Mother’s Day gift. To be honest, though, it’s really a gift to me as well since it’s one of my favorite things to do and a great way to spend time with my mom.
Total spending for the month was $2,108. So far this year I’ve spent $6,459, with an average of $1,615/month, which has exceeded my goal of monthly spending of $1,500 or less. I expected this and next month will be worse, with my property taxes due mid-month. After that, my monthly expenses should decline and I’ll see the average lower as the year progresses. It’s like this every year and completely expected. I have specific savings accounts that I contribute to each paycheck, which will cover these costs.
For my long-term goals, I’m currently 41% of the way towards financial independence, but 36% of the way towards my more conservative early retirement goal.
How did your April go? Any challenges?