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Good morning, the May budget is here! This will be the first month of a series of budget posts that document our path to being debt free by 30. Since being really gazelle intense, we’ve paid off almost $50,000 of our mortgage debt. Read more about that here. We’re forecasting our income out through the month and giving every dollar a job. The zeros at the bottom mean we’ve planned out what every dollar we earn will do for us.
As I write, James took our daughter out on his morning run. Despite me not being a morning person, mornings are my favorite time as a family. James grabs our daughter when she starts stirring and brews some homemade coffee for us. We snuggle together and enjoy the gummy smiles of our little one. Our German Shepherd jumps up onto our bed to join in on the snuggles. These are the moments of life I don’t want to forget. This is what drives me toward financial independence. I want more of this and less of 8 am rush hour and grouchy corporate politics.
Before we get going on this series, I’ll let you know a few details about this budget:
- Income is take home pay after taxes + side hustles + overtime. No income currently comes from blogging but hopefully will be added to the mix once I help enough people.
- The “Envelopes” category covers all expenses that we pay for in cash. This covers groceries, restaurants, personal funds, baby, etc. Basically, we use cash for any category that’s easy to overspend.
- We save 15% of gross income to pre/post retirement accounts. This budget doesn’t show our pre-tax contributions. Since our pretax contributions aren’t enough for 15%, we opened a Roth IRA and contribute biweekly so we reach 15%.
- We are purposefully not funding our daughter’s college fund until the house is paid off.
This budget allows us to save 58% of our income. Inevitably, though, there’s small expenses that pop up. We pay for those when they happen, but also try to minimize this as much as possible. I’ll share at the end of the month how close we get to 58%.
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Some other highlights we’re looking forward to in May is going to a Taylor Swift concert in a few weeks. We’ll be celebrating my first Mother’s Day. We’ll be traveling to Denver to celebrate a friend graduating with her masters degree. It’s a full month, but it’ll be good and hopefully help keep us motivated to pay off debt. Just because we have a budget doesn’t mean fun is off limits!