Well, I was going to go back and look at my year’s worth of financial updates. Except… Fun fact: I didn’t start doing financial updates regularly until March of this year. Oops.
Then I was going to go over my monthly spreadsheets, but I switched computers partway through the year, so several months’ calculations are on a different laptop. And, as I struggle to get over that nasty cold that’s been going around (and finally got me — don’t kiss boys, they have cooties), I don’t have the wherewithal to drag it out and boot it up and transfer the documents over.
So. This retrospective will be built on what I can cobble together from my bank statements. Eesh.
The Ally bank statements start at January 6th, so we won’t get a complete year-end look. But it’ll be pretty close.
It should be noted that I’m cheating a wee bit. I got a bonus this year, which hasn’t been put into savings or retirement or against the mortgage yet. Point being, that money is definitely going to one of the accounts that I count as “savings” so… I’m counting it in my savings rate, cheat-y or not.
I’ll start by saying that this year was a mixed bag for my savings account.
I had several large expenses including an $1,800 home repair bill and several smaller ones, $613 to get Tim’s name off the mortgage, $500 for a new loveseat, $500 for an escrow shortfall and a mystery $1,982 withdrawal that I can’t for the life of me remember the cause for. (Turns out Ally’s “notes” feature is only viewable for a few days after you complete the transaction. Why??? I’ll still remember the reason then. Not months after the fact!)
At any rate, these expenses necessitated withdrawals from savings. So my main savings account balance ended nearly $4,000 lower than it began.
But with all my other savings (total deposits of just under $10,650), there was a net gain in all of my Ally accounts of just under $4,500. (Vacation fund up $900. Car fund up $3,600. Emergency fund up $2,367.88. Etc.) So I’m choosing to look at the positive side of things.
On another good note, I maxed out both my Roth and SEP IRAs. Then there’s the aforementioned bonus as well.
Also, thanks to rent and saved savings — the latter of which was more than $3,000 just by itself — I was able to put more than $7,500 extra toward my mortgage principal this year. Woot!
So I guess that just leaves the big picture stuff now, eh? Well, fun fact: I did all of the percentage-of-total-income calculations and they sounded great. Then after writing everything up ever-so-nicely and even polishing it all up — in fact, almost getting ready to hit Publish — I remembered that I got about $5,400 this year outside of my salary and blog. D’oh!
The money was from my tax refund, a small inheritance and some help from my Mom (who has decided I shouldn’t have to wait the full 150 years until she dies — that’s our agreement — to inherit her money). Which meant I had to redo all of my calculations. Ugh.
They’re still not bad but not quite as good as the original ones, I think. Oh well.
In total, I put just about 38% of my gross income toward savings/retirement/my mortgage. Ideally, I’d hit 50%, but given the myriad expenses this year — at least* $3,700 in home repairs alone — I’ll quite happily take 38%.
Twenty two percent of my salary went toward the dreaded taxes.** Never fun, but I like paved roads and funded schools so… Whatcha gonna do?
This rate actually seems low to me since it includes FICA on the portion of my income that I pay myself as salary. But I based it on what I owed last year (plus I little since I got a raise) and I contributed significantly more to my SEP this year, so I think I’m safe from owing anything this year.
All in all, this means that I lived on about 41% of my gross salary. Not too bad, given that 10.8% of that alone went to my mortgage and home repairs. And another 8% of that was for healthcare. (I spent just under $1,460 on prescriptions this year. Whee.)
This means that 22% of my gross income for everything not home- or health-related seems pretty good. Especially since I was being relatively free — for me, anyway — with my entertainment/takeout budget with $200-250 a month going to those two combined.
So yeah, as a whole not too bad at all.
Still, next year I’d love to live on 35% of my income. I don’t think I’d manage much less than that without significantly impacting my life enjoyment, so I’m shooting for what I think is a more reasonable goal. I got another small raise this year — seriously, at some point he’s going to realize he’s overpaying my horrendously — so as long as the house behaves itself repairs-wise, I think that my goal is pretty achievable.
How did your year go?
*I canceled one of my credit cards when I left it at a downtown club. Which means that the card number changed with the replacement card and apparently the way that Citi works, I can no longer access statements for the old card number. Which I had as my main card for seven months of this year. Grrrrrr. So I can’t tell if there are more repairs I’m forgetting about. So, yeah, “at least” $3,700.
**That’s not just income tax. It’s FICA on the portion of my income I pay as salary plus regular income tax.