I’ve done it. I’ve taken the leap. Despite all odds, I’ve made an attempt to take stock of the money I spend each month. It’s not perfect, and I’m not sure it ever will be, but I now have a visual reference for where and when my money is coming and going.
And to my great surprise, it really wasn’t that hard. A quick Google search for budget templates and I was on my way! The version I came up with is below. Feel free to steal my template, there’s nothing more complicated here than addition, subtraction, and frozen cells.
Using my monthly income from the chart I put together here, I input the values to see how I might need to shift money around from month to month. I also haven’t bought a house yet, so I’m not spending anything on housing yet. And my dad buys *most* of my groceries, for which I am eternally grateful.
This chart, more than any other step I’ve taken so far in my financial journey, has hammered home just how rude of an awakening I’m about to have when it comes time for me to buy a house. The reality is that I may need to reduce how much I am currently putting aside into my investments every month. I may need to reduce my grocery budget and severely limit the number of times I allow myself to get food with friends.
But most of my money anxiety recently has to do with medical issues. Living in America as a late 20-something, health care is constantly on my mind. Currently I receive free health care through my state’s health care marketplace, but it is limited in its scope. As you can see above, I pay less than $20 a month for dental insurance, but this is the cheapest option and its coverage is also limited.
Meanwhile, I’m having issues with my vision (no insurance) and my gums (not covered by dental insurance). I would absolutely love to visit a dermatologist (my chin acne is out of control, thanks to the dry winter air), but I would need to get a referral from my Primary Care Physician to do so, and even then I’m not sure it would be covered. The ever-looming spectre of aging is beginning to creep up on me.
Gloomy, perhaps, but true. Getting older is expensive.
Which got me thinking this week. As much as owning a home has always been a dream of mine… am I ready for such a big step? I mean, let’s look at the worst case scenario. If I fall behind on rent or have to break a lease, is that going to be easier and cheaper to handle than foreclosing on a home? Maybe next time I will examine the benefits and drawbacks to owning vs. renting and share my findings with you.
On a lighter note, I’ve submitted all my paperwork to a mortgage lender and should have more information about what they think I can afford by early next week! Hopefully that will help lend some perspective to my worries.
Until next time!
The Frugal Girlie