When I was employed as a postdoctoral researcher, I started writing down every monthly expense I had in a spreadsheet. I loved seeing ‘where my money is going’ so I had a set amount of dollars for each category in the budget. For example, my monthly food budget was $150 during that time. I almost always cooked my meals, but towards the end of each month, I took myself out to a restaurant because I knew how much of my food allocation I had used by that time. Given the absurdly low salary I was earning, this practice served me well.
In an earlier post, I showed a pie chart of my monthly expenses compared to my take-home pay for March 2023. As mentioned in another post, I did not contribute to my employee-based retirement funds until 2022. By contributing 20% of the gross salary to my 403(b) retirement account in 2022, and starting an FSA account, I reduced my federal taxes drastically. I love learning about finances and inching my way to Financial Independence.
This pie chart shows ‘where my money went’ in 2022, compared to my gross income. In addition to my W-2 salary, I earned from a small ‘side-hussle.’
Bills: Power (electric and gas), water, home and car insurance, phone, streaming service, and home security. I do not have rent or a mortgage.
Misc.: Any expenses that were not categorized (clothes, gifts, cleaning supplies, plants, haircuts, etc.)
Car: My 16-year-old car needed a new hybrid battery, hence the expense was larger than usual.
Medical Expenses: Medical and dental premiums and out-of-pocket expenses. I wish I had better health insurance, but my employer-based plan is grandfathered-in and does not always align with the Affordable Care Act. Moreover, it does not qualify for an HSA.
I was able to fully fund my Roth IRA, and invest the rest in index funds and a little bit in a “fun” company that I anticipate seeing growth.
Pet – My dog improves my overall physical and mental health, only for the low, low cost of 2% of my gross income.
Photo: Salinas de Maras in Peru
