Uncovering the Truth About My Finances
As the new year begins, I take a step back to review my financial journey from the previous year. It’s a crucial exercise that helps me understand where my money comes from and where it goes. With the help of Quicken, I’m able to track my expenses and identify areas that need improvement.
A Breakdown of My Income
In 2018, I had a total of six income sources, including my regular salary, bonuses, freelance income, employer 401(k) match, employer HSA contributions, and interest earned. This added up to a grand total of $61,025.03.
Where Did My Money Go?
After reviewing my expenses, I categorized them into 15 groups, ranging from housing to entertainment. Here’s a breakdown of my top expenses:
- Housing: $11,893.64 (rent, supplies, furnishings, renter’s insurance, and kitchen items)
- Taxes: $10,710.18 (state/federal payroll taxes, 2017 taxes owed, and property taxes)
- 401(k): $9,000.82 (my contributions and employer’s contributions)
- Medical/Dental/Etc.: $3,641.31 (medical insurance, HSA contributions, copays, dental insurance, and prescriptions)
- Food & Dining: $3,131.76 (groceries, restaurants, alcohol and bars, fast food, and coffee shops)
Lessons Learned and Goals for the Future
As I reflect on my financial journey, I’m grateful for the opportunity to review my expenses and identify areas for improvement. One key takeaway is that my freelance income was nearly equal to the amount I spent on traveling. This realization has inspired me to set a goal to increase my freelance income to cover all of my travel expenses (and taxes) without dipping into my savings accounts.
The Importance of Financial Awareness
Reviewing my finances has given me a sense of control and confidence in my financial decisions. I encourage everyone to take a close look at their finances and identify areas for improvement. By doing so, you’ll be better equipped to make changes and set relevant goals for the new year.
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