June Expenses: I’ve spent a lot of money on my teeth

Another month has passed, and I have just a little more money and a couple fewer teeth. Before we get into that, here’s my balance sheet for the month:

Income

This included my stipend and a little bit of side income. Despite its inconsistency and relatively low amount, I’m really starting to appreciate side income. $200 or so a month will add up over time, and when there are months with a lot of unexpected expenses, side income can be the difference between investing a little bit versus nothing at all. I’m reminded of JL Collin’s observation that a $130/month investment in the stock market from 1975-2015 would’ve turned into nearly $1,000,000. Sometimes it’s nice to remind yourself of the big picture when you’re struggling to save more than a couple hundred dollars each month.

Expenses

Things were a little pricey across the board this month, but medical/dental bills is what really tipped things over the edge. I had a tooth extracted last week, and found out less than 2 days before (and only because I called them) that the cost would be over $700. Of course, when you’re accustomed to spending a good chunk less than you earn you don’t usually need to dip into an emergency fund. Fortunately, I was able to convince them to at least let me pay half now and half when I get the bill (apparently the standard method is to pay it all right when you get there), so I could still save a few hundred this month. Of course, the whole bill could have been easily managed right now, but a month of almost no saving would really put a downer on things.

Rent

A few days ago I was in the lobby of my building and saw a for sale ad for the unit identical to ours two floors down. The price was $499,000. I don’t ever claim to know a lot about home buying, but the generic 1% rule says that this unit should rent for somewhere in the ballpark of $4990/month. Well, we rent the same unit with a slightly better view for $1659/month, not including the $250/month discount we’re getting in June and July for renewing our lease (that’s why my rent was lower than the usual $600 this month). Anyway, this made me feel quite good to be a renter :).

Summary

You can browse the summary and rolling 11 month average below. Next month, I’ll post a more extensive summary of my first full year of tracking expenses, thoughts on the exercise, and whether or not I’ll continue to track in this way.

Categories  June May Rolling 11 month Average 
Saving rate  15.3% 13.1% 28.2% 
Time to Financial Independence1Based on this. Assumes a starting net worth of $0, so actual numbers are a little better than what’s shown. 42.4 years 45.7 years  28.3 years
Monthly Expenses  $2282.09 $2278.22 $1939.64 
$ Required to be Financially Independent2Multiply the above by 300 $684,627  $683,466 $581,893

 

See you next week!

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