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Welcome To Our May Personal Budget Report!

Welcome back, friends. It’s been a long, LONG time, but we’re finally back with our first posted budget report since December.

Don’t worry, we’ve still made sure to meticulously track our spending and finances. We continue to inch slowly toward our goals each month. Every cent has been accounted for in our family budgeting spreadsheet. You may have noticed, however, that I have been more or less radio silent in 2021.

Isn’t that just life more than a year into a global pandemic? I’ll be honest, this house full of teachers got a bit overwhelmed in the second half of the school year. We’ve been struggling to stay afloat with an ever expanding workload, constant uncertainty, and all the challenges that continued to come with teaching during a health crisis.

Oh, and I haven’t even mentioned our big news yet! 2021 also brought an extra special surprise for the P&P household. We’re expecting #2 in September. The first trimester left me functionally useless (practically from the moment of conception), and by the time I felt human again, I was so far behind on everything.

Now that I’m feeling much more like myself and with summer in full swing, it’s finally time to get back to work on the blog. I’ve got lots of ideas for great content (including budget baby stuff!) that I’m hoping to get finished this summer. My hope is that I’ll be far enough ahead to avoid any more big content gaps with the start of next year and a little one on the way!

Want more budget report goodness? Check out these links to see our previous months!

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Why Create A Monthly Budget Report?

The first real budget I set was back in 2014 when I made A LOT less money than I do today. I had been idling along for years in my retail service job, scraping by from paycheck to paycheck, and making very little headway. Way back then, it wasn’t even debt reduction or budgeting that got me interested in getting my finances under control. An interest in prepping lead me there.

In learning about preparedness, I began to realize that if there were ever an emergency, I was going to be out of luck. There was no savings to speak of, cash or otherwise. Stocking up was out of the question. The debt I had accrued was taking up all my expendable income and then some. I thought I was okay with money, but it turned out, I had absolutely no idea what I was doing. At best, I was JUST okay. So, I started to research.

I probably learned about every system under the sun. Cash envelope systems, spreadsheets, percentages and ratios… There was so much to absorb. I made a lot of mistakes. To be honest, I still do. But I did find a system that worked for me, and it made a difference almost instantly. In finally creating a physical budget, I could see that my money was being wasted all over the place. It was no wonder I couldn’t catch up.

If I could share only one takeaway, it’s this. You do, in fact, need to set a budget and put it on paper! Yes, technology counts as paper here!

Why Am I Sharing My Spending And Earnings?

Simply put, it helped me when others showed me what they were doing. I can only hope that sharing my own monthly budget report can help others out there who aren’t sure where to start.

I also think it’s really important that we talk about money. Like, as a society. The secrecy and shame surrounding spending makes it so much harder to figure out a system that works for you. There should be less fear of judgement and failure around money. If I can contribute to expanding the conversation, I want to!

Now that I have a child, I am realizing she learns so much by watching me. The best way for me to set her up for success is by showing her what’s out there and how it could be handled. It might not have taken me until I was almost 30 to realize I didn’t actually know what I was doing if there had been more conversations about healthy spending going on around me.

Budget Report Details Before We Start

Everyone budgets a little differently. There’s not really a right or wrong way. Just what works. Mr. P&P and I don’t track our budgets exactly the same way. But we’re working on getting there.

For a little consistency on our budget report, I’ll calculate monthly spending based on purchases made during the calendar month.

As for income, I work on a zero based budget using last month’s income. Basically, this means that all the money I earn this month is budgeted and spent next month. It’s an absolute life saver, especially if money is tight or inconsistent. Having the ability to borrow from my future self has saved my life a few times! Want to learn more? Check out this post where I break down how and why I budget this way!

Mr. P&P is still budgeting the current month’s income, so we do a little of both. Since most of our income is salary, this really only effects extra earnings and rental income.

May Income Budget Report- $6,302.81

Teacher Salary – $7,107.71 This includes both teacher salaries after the automatic withdrawal of taxes and health insurance.
Rental Income Property – -$804.90 Our first home was a townhouse we paid under $100,000 for in good condition, which is unheard of today. When we bought our last house, The Pit, we decided it was better to keep the town home as rental income rather than sell it to put money toward the new house. We’ve got a new renter, but the previous tenant did a lot of damage to our property. This month’s mortgage payment went entirely to maintenance, so we never saw it.
Extra Income Deposited – $0 Nothing this month.
Extra Income Paid in Cash – $0
Rebates – $0
Blog Income – $0 My blog definitely hasn’t reached the point where it makes consistent passive income yet, and I haven’t done much work recently.

May Spending Budget Report - $6,236.81

We’re still slowly figuring out our new normal with household expenses. Since we have yet to experience “normal”, it’s still hard to estimate our regular expenses in advance. I’m starting to think we may never experience it.

Monthly Living Expenses - $3,879.45

This budget report category includes typical monthly expenses that come out of our budget pretty much every month. While we’re inching closer to “normal” regular expenses, there’s still a lot of variability here.

Mortgage – $2,067.73 This is our total mortgage payment on our new house, including insurance, escrow. etc. It’s a lot higher than we paid at The Pit. However, we wanted to stay in our area, and we now have considerably fewer rodents living with us. We recently refinanced, so the payment is a little lower than you last saw in December.
Utilities – $237.16 This covers the electricity, water, and sewer. We need to get those pest control services going again soon.
Daycare – $700 Paid during the school year. We are fortunate to know an incredible lady who provides services for teacher’s kids at a very affordable rate. This will be our last payment until August!
Car Payment – $234.35 On top of the home issues in 2019, Mr. P&P’s 14 year old car died right in the midst of everything. The car seat doesn’t fit in mine, and we were basically living in a hotel, so we were stranded. We purchased a used car through Hertz Rentals because we knew it would be maintained, and their process is very straightforward. But we didn’t have the cash saved up after foundation repair, so we had to finance. I am still driving my 14 year old, paid off sub-compact.
Gas, Toll, and Other Transportation Expenses – $90.38 Poor roll of the dice. We both filled up twice last month.
Car Insurance – $91.00 We decided to start setting aside money each month to cover estimated insurance premiums. It renewed this month, so now, we’re rolling money into a sinking fund again for December renewal.
Groceries – $860.30 A lot higher than I like, but we were all home the entire last week and a half of May, and we did a fair bit of bulk restocking. Our summer grocery bills are often higher. Hopefully, they don’t stay this much higher!

Debt Expenses - $715.50

This is money we spend in order to pay down previously existing debts and any expenses resulting from debt. Just look at how much money we’re giving away!

Student Loans – $400.00 Mr. P&P is still making his payments. (Federal student loans older than 10 years DO NOT qualify for COVID related assistance!) Recently, the amount of my loan has gone into savings. It was earmarked for a lump sum payment in September, but life happens. Now, that money will get me through an unpaid maternity leave at the end of this year.
Debt Repayment – $280.00 Just the minimum for now. We’ve shifted a little from debt payoff to new baby survival mode!
Fees and Charges – $0.45
Medical Debt – $0

Other Recurring Monthly Expenses - $333.29

These budget report expenses happen every month, but they are not vital spending categories! It’s the stuff we could get rid of and survive if we needed to.

Phones – $85.08 This is both cell phone plans.
Digital Media, Streaming, and Internet – $242.21 This covers our internet and Hulu account. The card that autopays our internet expired, and we didn’t catch it. Our bill this month is so high because it includes a late fee and back payments from previous months.
Rock Climbing Gym – $0 We love rock climbing together! But when we learned that Baby Girl was coming, we stopped attending and haven’t picked back up. That same expired card paid this account, and we haven’t updated it yet. Seems silly since I can’t rock climb right now!
Monthly Renewals – $6.00 We each have some subscription boxes for various hobby interests throughout the year.

Variable Spending - $1,308.57

These expenses change every month. They are somewhat unpredictable and variable.

Health Care – $298.19 Expect this category to show a marked uptick in the coming months. This month includes vitamins, a pediatric visit and prescriptions (poor Baby Girl has had strep several times this year), my prenatal anatomy scan, and a fetal echocardiogram. All is well with #2. I get them because my own congenital heart defect puts my babies at risk of developing one.
Home Improvement – $0
Home Expenses – $0
Dining Out – $220.20 I’m gonna blame this on two birthdays and being overwhelmed/exhausted.
Blog Expenses – $7 I grabbed a small course that was on sale.
Baby Expenses – $438.29 Diapers. Potty training is in our future. I bought a bunch of maternity bottoms out of desperation. None of my pants fit, and apparently plus sized people don’t get pregnant, so I’m paying a premium… We also grabbed a new baby monitor and a diaper sprayer to start prepping for #2.
Classroom Spending – $3.26 Virtual memory books for my virtual 3rd graders this year.
Digital Streaming/Media $0
Gifts – $164.16 Mr. P&P and I both have May birthdays. This covers gifts, gift wrapping, cards, cakes. The usual.
Hobbies and Entertainment – $47.51 We grabbed a bunch of comics and some new children’s books for a bit of summer reading.
Other Spending – $170.36 Little stuff that adds up. Personal care products, replacement shoes, a belt, that kind of stuff.
Holidays – $0 Nothing here, but it’s embarrassing how excited I am to start looking for Halloween deals.
Savings – $400 My frozen student loan payments go into savings right now. An unexpected pregnancy means I’m incredibly grateful to have made that call back in March. My loans will take longer to pay off, but I’ll have 3 months of income saved up for my unpaid leave at the end of the year.

Budget Report Goals Progress

As with all months, unexpected expenses rack up, and stress increases our spending.

Our financial goals have shifted drastically in the past year. We first began with the goal of quickly paying off our credit card debt, and we made a lot of progress on that goal. However, we didn’t finish it off before the pandemic, lockdown, and civil unrest shifted our goals toward creating an emergency buffer.

Now we’re shifting once again. With a surprise blessing on the way, we are all about building the means for a very cozy survival mode at the end of the year. The timing really couldn’t be better, as aggressive savings through the last year will allow us to cashflow the costs of maternal care, delivery, maternity leave, and the unanticipated tenant shift for our rental.

That’s part of what makes me so passionate about personal finance. There’s no single right way or correct path. You’re not stuck with your original plan. Our financial goals can be flexible, fluid, and still the right way to go.

I know that not everyone out there is as fortunate as us. If you’ve lost your income, or it’s been cut drastically, I recently wrote this post about how to cope right now if you didn’t have an emergency fund to fall back on. I outline a bunch of ideas to help cut costs and increase income while times are tough.

A Quick Word On Preparedness

The thing about a global health crisis and a weather event that shuts down the power grid in your state is that it really shines a light on the holes in your everyday preparedness plans.

Hopefully, you still remember the stress of food and supply shortages that snuck up on so many people. If you can prevent it the next time, I urge you to do so. Don’t wait until things get worse.

NOW is the time to take steps and get prepared if you haven’t already. Get money in the bank, food in the pantry, and supplies in storage.

Here’s that list of helpful posts again, just in case you’d like more information.

What Does The Future Hold?

Facing your financial burdens head on does not feel good, but it is important if you want to grow. You can’t fix a problem if you don’t know it exists. No matter where you are, figure out what you’re starting with so you can decide where you’re going.

If you need help getting started, well, that’s what I’m here for. Check out this recent post that will give you a step by step guide to help you make a plan and get out of debt.

We longingly dream of the day we can say we are entirely debt free! I don’t know if that day will come, but why not dream big? Today, our goal is to make progress. But someday, we want to have as much control as possible over how we use our money. So, I’m giving you a breakdown below of our major debt goals and monthly progress. Who doesn’t love a nice graph?

All totals except the credit cards go back to the original loan amounts, and the credit card total comes from our calculations in September 2019.

The percentage bar shows the percentage paid off.

The numbers beneath show the total remaining / original loan.

Credit Card Payoff Goal

Debt Paid 86.2%

$5,432.72 / $39,558.61

We are shooting for a goal of payoff in 2 years! Just 9 months to go.

A little up this month due to all the poor budgeting choices, but we’ll get it back under control!

Medical Debt Payoff Goal

Debt Paid 16.4%

$11,885.63 / $14,169.05

This includes only the debt I took on with the birth of Baby Girl. The cost of her conception through treatments and prenatal care were paid in cash, as was the hospital down payment. It’s just the debt accrued after delivery complications and emergency services that I couldn’t deal with due to a mostly unpaid maternity leave. A lot of this is currently in collections because I just don’t have enough money to settle yet, but I’m chipping away.

Medical Debt Payoff Goal #2

Debt Paid 9.5%

$5,000.27 / $5,526.63

This is the debt we took on as a result of Mr. P&P getting an infection that went septic and needing hospitalization in October.

Car Payment Payoff Goal

Debt Paid 31.1%

$9,721.20 / $14,111.92

We’re not putting extra here yet.

Student Loan Payoff Goal

Debt Paid 28.5%

$57,645.23 / $80,567.17

Someday, we might qualify for debt forgiveness due to becoming public school teachers. We’re not really putting a ton of eggs in that basket though. If I can get them paid off earlier, I will. A lot of the progress I made here happened in the years where my income was fairly low, so I’m pretty proud of that.

Mortgages Payoff Goal

Debt Paid -40.8%

$411,771.69 / $292,407.00

I left our previous mortgage total because I thought it would be interesting. Mostly, it’s painful. This move increased our debt total in this category significantly. There’s no guilt here, though.

You might have noticed that it’s even higher than the last report. We refinanced both our loans in January to help lower our interest rates and increase our cash flow a bit. Right now, we’re not paying that extra on our loans, but that’s the plan when things stabilize a little.

We had to make the best choice for our family’s health and finances. The best choice for us was to get out of The Pit, and start again somewhere else. Between the purchase of the new home and the refinance on the rental property, we took on a lot more mortgage debt. It’s weird, though. For the first time in a while, we feel like we can breathe. We see a light at the end of the tunnel and an opportunity to actually make some progress.

The mortgages are last on our list of payoff priorities. They’re pretty huge amounts for us, but we really would like to pay them off early and save some interest!

Now, It's Your Turn

If you haven’t sat down yet and faced your debt head-on, I really encourage you to do it! Figure out what you owe. Write it down. Stare those numbers in the eye and acknowledge them! Here’s a step by step guide to help you get started.

You can’t fix a problem you don’t know about!

What was your spending month like? How have recent events altered your budget or plans? What are you doing to stay on top of everything?

How are your personal finance goals coming along? We would love to know!

While you’re at it, don’t forget to share this post on your favorite social media, follow us, and subscribe to our newsletter.

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