She Strengthens

Breaking Down My Budget: A Year in Review

As we welcome a new year, I’ve taken the opportunity to reflect on my spending habits and savings goals. As a self-proclaimed budget enthusiast, I’m excited to share my experiences and insights with you.

Before We Dive In

I want to emphasize that this post isn’t about bragging or seeking pity. It’s about being honest and transparent about my financial journey. Everyone’s circumstances are unique, and I respect the decision to keep personal finances private. However, I believe that sharing our experiences can help us learn from each other and grow together.

My Situation

I live in the Lower Mainland of Vancouver, British Columbia, where the cost of living is relatively high. I work in government administration, earning around $50,000 CAD per year. I live alone, own my apartment, and don’t have any debt apart from my mortgage. My boyfriend and I split expenses, and I’m fortunate to have a supportive family who helps with groceries and transportation.

Fixed Expenses

My fixed expenses total $17,791 CAD, which includes strata fees, mortgage payments, utilities, and recurring charges like internet and bus passes. I’ve managed to save on my transit pass by enrolling in school and taking advantage of the free U-Pass program. Not having a car has also helped me save money.

Groceries

My average grocery bill is $263 per month, which may seem high for one person. However, I work in a remote area with limited lunch options, so I cook my meals every day. I enjoy cooking and consider it a form of self-care.

Coffee and Snacks

I’ve categorized coffee as a need, and my coffee expenses total $251 CAD per year. I’ve learned to make my own coffee at home, and my brother’s job at a coffee chain has helped me score some freebies.

Home and Entertainment

My home expenses, including insurance and maintenance, total $2,360 CAD. Entertainment expenses, which include dinners out and social events, come out to $1,811 CAD.

Shopping and Miscellaneous

I’ve spent $2,108 CAD on shopping, which includes gifts, healthcare items, and blog-related expenses. My miscellaneous category, which includes travel and presents, totals $5,053 CAD.

Creative Spending Fund

I’ve set up a separate fund for creative projects, which includes expenses like courses and website hosting. This fund has helped me stay accountable and critical about my spending.

Retirement and Savings

I’ve contributed $7,277 CAD to my retirement fund, not including my employer match. I’ve also saved $5,460 CAD towards various spending activities, including travel and emergency funds.

The 50/30/20 Rule

Breaking down my expenses, I’ve allocated:

• 56% towards needs (housing, utilities, food, and transportation)
• 15% towards wants (entertainment, hobbies, and travel)
• 27% towards retirement and savings goals

Reflection and Growth

This exercise has taught me a lot about my spending habits and priorities. I’ve realized that I need to revamp my budget template to better track my expenses. I’ve also learned to appreciate the importance of saving for retirement and emergency funds.

I hope this post has been helpful and informative. Remember, our financial journeys are unique, and there’s no one-size-fits-all approach. By sharing our experiences, we can learn from each other and grow together.