She Strengthens

Embracing the Real World: My Imperfect Budget

As I settle into my new life on the West Coast, I’m excited to share my first post-graduate budget. It’s not perfect, but it’s a start.

Paying Myself First

With a monthly take-home pay of $2,200, I’ve divided my direct deposit into six parts. Three automatic savings accounts receive a portion of my paycheck, and the rest goes into my general checking account. My priorities are:

• Emergency savings account with Capital One: $100
• Roth IRA retirement account with Fidelity: $50
• High-yield savings account with Goldman Sachs: $50

By automating my savings, I ensure consistent progress toward my goals. Once I’ve saved three months’ worth of living expenses, I’ll adjust my contributions to focus on my high-yield savings account and Roth IRA.

Budgeting for Fixed Expenses

After savings, I have $900 left to allocate. My fixed expenses include:

• Student debt: $50 (borrowed from the Bank of Mom and Dad, with a goal to increase this amount)
• Rent and utilities: $550 (split with a roommate in a 2-bedroom/2-bathroom apartment)
• Car insurance: $40 (proudly owning my car outright)
• Squarespace website: $8 (a necessary expense for my portfolio and reel)

I’ve set up a separate “Sad Money” account to hold funds for these expenses, transferring $648 from each paycheck.

Managing Discretionary Spending

With $252 left, I allocate funds for gas, groceries, and miscellaneous expenses. Since moving to California, gas prices have skyrocketed, and I’m still adjusting to the new costs. I budget $50 per week for gas and groceries, preferring to use cash for these expenses to maintain control over my spending.

This leaves me with $52 of “fun money” for entertainment, socializing, and unexpected expenses. Any unused funds will be redirected to my short-term savings account.

The Road Ahead

While this budget is a solid foundation, I know it will evolve as I navigate my new life. Medical expenses, travel, and other necessities will require adjustments. For now, I’m focusing on covering my essential expenses and building my savings. The journey to financial stability is just beginning, and I’m eager to learn and adapt along the way.