Reviewing My Income and Expenses

Jacob at Early Retirement Extreme is having a 30 Day Early Retirement Extreme Makeover.   One of the goals of this makeover is cut your expense level to $10,000 or less a year.  I thought I was close to this goal already since I try to keep my monthly expenses at $1000 a month or less and I knew I was below that level a few months this year.  After reviewing my expenses for the year I realize I’m farther away from the $10,000 goal than I thought.  Although I did have some months below the $1000 level I had more months above the $1000 level.  I’m estimating that my total expenses will be about $15,000 for this year and  my total income at about $12,000.  This is not as good as I thought but that is part of the reason why I track my income and expenses; so I can review them and tell how I’m doing.

Looking at my expenses my budget busters are transportation and entertainment.  The transportation category is somewhat misleading because I drove my car delivering pizza most of the year.  Some of that expense should really be a deduction from income.  Still there is plenty of room for improvement in the transportation category and I will be making some major changes there.  Some of the increase in my entertainment expenditure is from having a GF but most of it was just the result of stupid decisions on my part.  This expenditure can easily be reduced just by choosing more free or low-cost options for entertainment.

Since the new year is almost here I’ll go ahead and set a couple goals now.  The first is to have my expenses under $10,000 next year.  The next is to have my income higher than my expenses.  These are reasonable goals and I will be planning specific measures to achieve them.

2 thoughts on “Reviewing My Income and Expenses”

  1. I like reading how low you can keep your expenses so do you think you could do a post about how your girlfriend deals with your lack of spending (or just regularly write more about her?) She must be a special woman who also likes keeping her spending down. I would like to learn more about her feelings on frugality. Thanks.

  2. Diana- My GF is relatively frugal but not nearly to the degree that I am. She basically deals with my frugality because that is a part of who I am and it isn’t going to change. At least not much. It would be great if she were into frugality as much as I am but that isn’t going to happen.

    Jacob at Early Retirement Extreme lives in an RV with his wife. Not something I could ever convince my GF to do. He has a post How do I get my spouse to go along with my frugal plans? that might be of interest to you.

    This is turning into a long reply. Maybe I will do a post on this.


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