January Expenses – $822.34

Here is a breakdown of my expenses for January.

Household

$407.92

Entertainment

$25.80

Transportation

$73.02

Food

$149.13

Debt $5.00
Phone

$26.81

Health

$119.92

Electric

$14.74

Total

$822.34

I’m pleased with the total of my January expenses. One of my goals for the year is to keep my expenses below the level of a minimum wage income, which would be about $1274 a month.  I managed to do that and even managed to keep my expenses well under my stretch goal of $1000.

My food expense were still higher than I would prefer. This is because I had fast food almost every single day. Fast food made up over $100 of the food total.  My goal for February is to keep my fast food spending under $25 for the month. That should result in an overall lower food bill.  If I have to spend a little extra to get healthy food that I actually want to eat though, I will do that.

Transportation was where I enjoyed my biggest savings.  I went from over $800 last month to under $100 this month. I only had to fill up my car a couple of times and I didn’t have to spend any money on maintenance, insurance, or taxes so it was a very cheap month.  Gas prices are going up and I have to make a trip to SW Missouri and back this month so I won’t be able to keep my transportation expenses as low in February. They still shouldn’t be much over $100 though.

Entertainment was also very cheap. I used a free movie gift card for a couple of trips to the movies and other than that I mostly enjoyed free entertainment.

All the other categories were about the same as the month before and will probably be about the same this month. It is a short month so maybe I can get my expenses under $800 this month.

 

 

 

 

The 18-Cent Breakfast

For the past month or so my usual breakfast has been a couple of scrambled eggs. I’ve been able to get eggs on sale for $1 a dozen. That comes out to 8.33 cents per egg. Missouri charges sales tax on food so I figure my two egg costs about 18 cents. It might be another penny or two when you add in the cost of cooking spray, but it is still going to be less than two bits for breakfast.

A two egg breakfast is only about 160 calories which isn’t much for a meal so the calories need to be made up later. I’ve found that two eggs is a satisfying breakfast for me and three eggs seems to be too much. I could add a banana or orange for around a dime more to add some calories to the meal and make it a little more nutritious. I often take a piece of fruit to work and have it as a snack later in the morning. It works for me.

Back when I kept my food budget under $100, before I started indulging my penchant for junk food/fast food too often, people would wonder how I did it. Some would even say it wasn’t possible. There are a lot of cheap breakfasts and other cheap meals that are possible if you do a little research. The meals don’t have to be unhealthy just because they are cheap. How healthy having two eggs for breakfast is, is debatable, but that breakfast is still better than the fast food/junk food I normally eat.

Since I’ve started working my full-time job in addition to my part-time job I have been indulging in fast food way too often. I’m tired after work and it seems so much easier just to have some fast food, plus I tell myself I deserve it for all the hours I’m working. For the month of February I’m going to cut way back on my fast food/junk food purchases. My goal is to cut the amount I spend on junk food/fast food in half. I’m not going to worry about the cost of my healthier food, but I expect I will lower my overall food bill.

My $14.74 Electric Bill

I was pleasantly surprised to find out that my electric bill for December was only $14.74. My actual energy charge was only $4.87, the rest of the bill was for the customer charge and taxes. This is why I didn’t want an apartment with natural gas heat. The gas company charges a $25 customer charge before you even use any gas. Electric heat ends up being much cheaper for me.

I used 66 kwh of electricity. The average household in Missouri uses 1,112 kwh of energy in a month. Since I am a single person and have a studio apartment rather than an average size household and house it makes sense that I would have a lower electric bill. There are several ways I save on electricity by living in a studio apartment. My hot water comes from a central boiler which allows me to take 15 minute hot showers without running up my electric bill. Another advantage I have for using less electricity is that I don’t have a washer/dryer. The biggest savings came from the fact that I didn’t use my heat at all. My apartment just seems to naturally stay warm. I guess that is from having a third story apartment with south facing windows. This could be a big disadvantage when it starts getting warmer.

There are some things I do to save electricity. I think they are all pretty well known electricity saving tips. I keep the microwave unplugged when I’m not using it. I use a fluorescent lamp rather than the overhead light in my bedroom. In the bathroom I use just one light bulb and keep the others unscrewed since one bulb provides plenty of light. Sometimes I shower in the dark. I don’t have a TV, I use my laptop for watching movies and other entertainment. I use sunlight for illumination during the day.

Even with all of that I’m surprised my electric bill was so low. I would have thought the refrigerator would have used that much electricity by itself. If the electric bill was a mistake I’ll find out next month. If not, I think I have my electricity costs about as low as they can go.

December Safe Withdrawal Rate – 104.5%

My December 2012 safe withdrawal rate was 104.5%. That is obviously not a safe withdrawal rate at all and is quite a bit worse than my SWR in November of 86.22%. There were two reasons for SWR being much worse for December.

The first reason is that my expenses in December were too high at $1580.99 for the month. In order to reduce my SWR I need to reduce my living expenses. The way I am determining my SWR is by tracking my trailing 12 months expenses divided by the amount of my investments. Since I don’t think the preceding 12 months accurately reflect my expenses going forward I am just using November and December’s expenses to determine my average monthly expenses for now. With only two months making the average, one bad month throws off the average quite a bit. January should be a low expense month and skew the average downward.

The other reason my SWR is worse is because I saved very little money in December. I managed to put $65 into my IRA. In order to reduce my SWR I need to increase the amount I put in my investments. Starting this month I have a goal of saving 50% of my income. It looks like I will achieve that goal this month and that will help lower my SWR.

The common rule is that you need to get your safe withdrawal rate down to 4% in order to be able to safely retire. I am setting that as my goal. I have a long way to go, but starting this month I expect to see significant progress in reducing my safe withdrawal rate.

Make Your Own Shaving Oil

Using a safety razor allows me to keep my shaving costs low yet get an excellent shave. I have extremely sensitive skin and even using a high quality razor, shaving gel, and shaving in the shower my skin is very irritated from shaving. On a post about saving money on shaving at another blog a couple of commenters recommended using shaving oil and mentioned that it lessened the irritation of their skin and left their face feeling soft. Based on that recommendation I decided to give it a try.

The cost of shaving oil is much more than shaving foam but I figured if it worked like the commenters said it would be worth the extra money. I don’t always choose the lowest cost option. I found a somewhat reasonably priced shaving oil that also had positive reviews and bought it. The price was still a little more than I would have liked, but I had lots of Amazon credit from Swagbucks so it didn’t cost me anything out of pocket.

I have been pleased with the performance of the shaving oil. My skin is less irritated after shaving and feels much softer. I initially used the shaving oil with shaving soap but when I ran out of soap I just used the oil and it worked fine by itself.

Even though I am happy with the shaving oil, I don’t like that it costs so much more than shaving foam,gel,or soap. Looking at my bottle of shaving oil I saw that it was made from a blend of olive oil, peppermint oil, sandalwood oil, and other oils. That made me think I could make my own shaving oil. A quick internet search revealed that plenty of people do make their own shaving oil. You just need the base oil, which for me is olive oil, and a few drops of essential oil.

What I have done is just add olive oil to the remaining oil in my shaving oil container. I will eventually need to get some essential oils but since you only need a few drops per ounce of the base oil it shouldn’t raise the cost of my shaving oil much. My cost of shaving was already very cheap and now it is even cheaper.