Hey savvy family! Super excited to bring you our very first monthly budget breakdown.
In this article, we will break down our spending from the previous month, net worth update, blogging business update, and general life update on what The Savvy Couple is up to.
If you find this helpful and valuable let us know in the comments at the bottom of the article.
August Budget Breakdown
Let’s dive into the numbers from last month.
We are in the middle of moving houses and our monthly expenses are going to drastically change at the new house.
The new house is essentially double the size which means almost every housing expense is about to be doubled. More on our decision to move in the life update section below.
This month we sat down and created our monthly budget knowing we were going to have an unusual amount of spending in our home improvements category.
We budgeted $500 for home improvements and we still went over that!
I’m already having fun sharing our monthly budget with ya’ll. Let’s dig into the numbers.
Income – $4,293
I take a $3,693 monthly salary from the business every month. We are set up as an S-Corp and run payroll once a month to our shared checking account.
We try to take as little income as possible from the business to live off of. It helps us maintain our frugal lifestyle and also keeps money in the business to continue to help us grow.
After our move, we will be taking around $4,500 a month from our business to pay for the additional housing costs.
We have a lot of flexibility as business owners to take owner’s distributions. Meaning we can take out lump sums of money when needed for investing, vacations, down payments, etc.
This month I spent some time selling things we no longer needed that I found while packing up our house. In total, after selling my old drone, textbook, and Super Nintendo we made roughly $600 in extra income.
Mortegage – $1,021
This number includes our mortgage, property tax, and homeowner’s insurance for our 1,250 square-foot house. Believe it or not we pay over $5,300 per year in property taxes on our house in NYS!
Health Care – $516
Since we are both self-employed we are part of Christian Healthcare Ministries. We pay monthly just like insurance and any “incident” over $500 is covered by other members. Brittany’s entire pregnancy is 100% covered and shared.
Home Improvement – $500 (Actual $551)
We sold our home and had a few repairs to make after our home inspection. I also included our moving pod $375 in this category.
Groceries – $450 (Actual $496)
We had two birthdays this month that we bought extra food for. I think this is the closest we have ever gotten to spend $500 in a single month for food.
Gifts – $200 (Actual $186)
We always budget for gifts each month. Weddings, birthdays, Christmas, etc. it’s always better to budget than get surprised.
Donations – $200 (Actual $180)
We are Christians and believe it’s important to give back. We make monthly donations to our church, K-love, and special occasions.
Gas/Electric – $138 (Actual $0)
One of those weird months where the dates line up where we don’t have to pay our electric bill.
Travel – $100 (Actual $127)
Our camping trip cost a little more than we thought. Anytime we travel we dump all expenses into this category. Things like gas, food, activities, etc.
Gas/Fuel – $100 (Actual $124)
Since we both work from home, share one car, and don’t need to travel much we are almost always under $100 in gas every month.
Auto Insurance – $65
Our car insurance through Geico includes roadside assistance and our camper. We shop around at least once a year to get the best coverage and rate.
Kids – $50 (Actual $81)
This category in our budget is for diapers, wipes, toiletries, toys, books, clothing, etc.
Kelan’s Fun Money – $50 (Actual $53)
Yeah, that trip to the bar set me back a good $40 alone.
Brittany’s Fun Money $50 (Actual $49)
Resturant – $50 (Actual $49)
We primarily cook at home and rarely go out to eat. We budget enough to go out 1-2 times per month.
Entertainment – $50 (Actual $25)
This category covers our date nights, parties, museums, community activities, etc.
Kallie’s Savings – $50
We put $50 into Kallies taxable investment account with Betterment every month. We also take any birthday or holiday money she receives and double it to put into her savings account. She has close to $1,000 saved already.
Car Repairs – $50 (Actual $20)
We bought new wipers for our car and also still need to get our inspection done.
Life Insurance – $38
Both Brittany and I have a term life insurance policies through Haven Life that covers each of us for $500,000. We got these policy’s after Kallie was born to better protect our family.
Garbage – $26
This is for our weekly garbage pickup.
Water – $17
We get billed every 3 months and it averages out to about $17 per month.
Total Monthly Expenses – $3,670
TOTAL MONTHLY CASHFLOW – $505
A bunch of our readers have been interested in learning more about investing and specifically our strategy for investing.
So, I wanted to take this section of our budget breakdown to briefly talk about our investment strategy and how you can see some of what we have been doing.
First and foremost, we are not financial planners so this information is just what we personally do. You should read our in-depth article on how to invest for more details.
Here are the investing rules I follow straight from Mr. Buffet himself:
- Always invest for the long-term
- Don’t invest in anything you don’t understand
- Don’t lose money on your investments.
We both have Roth IRA’s we rolled over from our previous jobs. We converted them to Roth’s for the tax savings on the back end. We also have a SEP IRA since we are self-employed.
All of those IRA’s are invested through Vanguards VTSAX fund. We chose this fund because of the extremely low fee’s 0.04%, diversification, and long-term growth. We discovered this fund through the FIRE (financial independent retire early) community and have been very pleased with it.
We set aside 10-20% of our portfolio for aggressive investing via individual stocks. I have a background in business + finance and use it to my advantage when researching companies to invest in.
Here is a preview of our Robinhood account where we hold a handful of Apple and Tesla stocks. I believe in both of these companies for the long haul.
I wanted to share this image with you to remind you to invest in the long-term and don’t get caught up in the speculation or hype. Many people pulled their money out of the market during this pandemic and missed out on the biggest gain the stock market has ever seen.
Always invest in the long-term!
You can sign up for your own Robinhood account and receive two FREE stocks to get you started.
Blogging Business Update
Gosh, I can’t even explain how much we love running our blog. Brittany and I are beyond blessed to be able to do this for a living!
The freedom and happiness our blog has provided us in our life is hard to put into words. We wake up every day excited to continue to love and serve our readers and spend so much incredible quality time as a family.
Our blogging business has undoubtedly felt the effects of COVID this year. We make money in a variety of ways with our blog and many advertisers or sponsors have cut back their marketing budgets quite a bit which we felt the effects of.
We are still extremely blessed and thankful for our business as it will easily surpass six-figures again. We are currently averaging around a 75%-80% profit margin which is incredible for a small business.
We have really doubled down on diversifying our income streams and focused our attention on creating our own products and courses to sell.
Yup, we are moving! It feels completely surreal as we did not expect to move for another 2-3 years.
Our current house is 1,200 square feet and with baby #2 on the way it was about to get real tight on space up in here.
It’s crazy how God works and how his timing is always perfect. Literally SO many things had to fall into place in order for us to buy my childhood home back.
It’s a wild story and would take way to long to type out. We hope to create a YouTube video on the entire thing once we get settled in at the new place.
Speaking of which if you are not subscribed to our YouTube channel, you should!
Other than our big news about moving not much else has changed. Brittany is still a super wife, mom, and prego lady that has been doing incredible.
Sometimes I have to tell her to slow down and relax. I have honestly forgotten she’s pregnant more times than I would like to admit and she’s 21 weeks in! Haha.
Make sure you follow us on Instagram as we post daily to our stories and it’s the best way to stay connected with us.
With everything going on with virtual school what are some actual legitimate side hustles that I could do to eventually stay home with my kids?
This is such a good question and one I am sure many other parents are struggling with right now.
We have a bunch of online side hustles we recommend that we have either made money with ourselves or did the research to ensure they were safe/legitimate.
But to not overwhelm anyone reading this I want to only share our top three online side hustles.
These are all legitimate side hustles you can start right from the comfort of your home. Something like blogging will take far longer to make money with than proofreading or freelance writing, but the income potential is much higher.
The key is really sitting down and writing out the skills that you already have. Things like graphics design, writing, proofreading, data entry, social media management, etc. can all be skills you can monetize quickly online.
You can find flexible jobs that pay great within Facebook groups, Upwork, or Freelancer.
If you are still feeling stuck finding legitimate work from home jobs then we highly recommend taking this FREE Work From Home Masterclass.
Hope you enjoyed our first Budget Breakdown. I had a blast writing it and hope it allows us to better connect with you in the future.
If you enjoyed reading it and found it valuable we would love for you to leave a comment below with your feedback.
Take care and God bless!