I have $2,169.44 in my savings account. This is the equivalent of a month-and-a-half emergency fund.
We spent several minutes on the phone gushing about how happy we were and how great this was going to be, and then I asked my sister where she was planning on staying.
“I thought I’d stay with you!” she said cheerily.
I’m clever enough with math to understand that this means chopping off 50 percent of my income as soon as it hits my checking account and stuffing it somewhere else, but I hadn’t quite realized what that would feel like in practice.
How do you know when to stop spending? What prevents you from buying everything you want as soon as you see it?
Every month, I need to put 20 percent of my income towards taxes, 20 percent towards debt, and 10 percent towards savings.
Think about the cost of living where you live. Think about what you actually need, financially, to live on. The bare minimum. Does it sound like $70 a week? Probably not. But I’ve done it three times—in New York City.
As requested, here is an open thread in which you can share your 2015 budgets.
When you ask Billfold readers to critique your budget, they critique your budget. With that in mind, here’s a revised and updated 2015 budget, incorporating your suggestions.
Have you figured out how much discretionary income you’ll have every month in 2015? Is that something you consider when you plan your spending?