Welcome to my first monthly report! In this first report I will go over all the money making and saving measures I already have in place. There is a lot to go over, so lets get started!
What I’ve been up to these past few months:
Cost saving measures I’ve implemented from June- August 2013:
Packing a lunch to work: Estimated Savings = $100/month ($5/day x 20 work days in a month)- I’ve been doing this since I started at my job and has really been easy since I still live with my parents. I never worry about having to buy groceries or cooking enough for leftovers so it will be interesting to see if this one holds up once I move out.
Transit Flex Spending Account: Estimated Savings = $45/month (30% x $150 train pass)- FSA’s are a handy way to save money on expenses you know you will have each month. What they do is take a designated amount (you choose how much) of your pre-tax dollars from each paycheck and put that money on a debit card which you can only spend on certain things, mine being transit. Since I get taxed at 30% and the train pass is $150 each month, I save $45 each month (150 x .3).
Partial reimbursed phone bill: Estimated Savings = $50/month – Ok, I got lucky with this one. Not many companies offer to pay for your phone bill or a large portion of it. My company pays 80% of my phone bill which is very nice. The bigger point here is to take full advantage of whatever benefits your company has to offer.
Bike to train then walk to work: Estimated Savings – $100/month ($5/day for parking and transit x 20 work days in a month) – I am fortunate enough to live less than 2 miles from the train station so my morning and evening bike rides are not too bad. This savings will be ended shortly when winter comes around.
Live at home: Estimated Savings – $800/month - I will be the first to say I am spoiled while living at home. $800 in savings is probably an understatement since living at home is saving me money on rent, utilities, and food costs. Not to mention the home cooked meals. This savings will need to come to an end eventually since I don’t want Mom and Dad to be my roommates forever. In the mean time, it is a great way to save up before moving out!
Total Estimated Savings: $1,095/month
(All have been added to my “ways to save” page)
Passive Income Generators I’ve implemented from June- August 2013:
Bank Interest: Yup, that’s right, I started this investment blog with only having my money invested in a low-interest savings account. When I say low I mean .05% low. This is something I need to change and quickly! Quite frankly, it is embarrassing running an investment blog while most of my money is in the bank earning next to zilch!
August Financial Results:
Investments I’ve made from June- August 2013:
Contributed to 401K through work: Fidelity’s 2055 Retirement Mutual Fund – $295.38/month
Opened a Roth IRA: Even though a Roth IRA is not an investment in itself, it is a great tax sheltered place to grow your investments. I was able to set one up through TD Ameritrade and contributed the full $5,500 for this year so I could get investing right away.
Auto & Transportation: $62 (gas)+70%*$150 (train pass) = $167 (reduced because of Flex Spending Account)
Alcohol & Bars: $96
Phone Bill: $56*20%= $11.20 (reduced because company pays for 80% of phone bill)
Bank Interest: $0.06
Net Income For August:
Action plans for next month:
-Develop a long term investing plan