Detailed Budget Review

Who doesn't love a good budget guideline? Please let me know if there is something wrong with me or if you do this, too: when I see a breakdown of what a budget could/should look like, I can't help but compare my own budget and spending to see how it stacks up.

 

For that reason, Sherry's recent post caught my eye. In it, she threw out some good numbers:

50% for Needs

30% for Wants

20% for Savings/Debt Pay off, 

all using a take-home budget of $3K a month, which is a realistic number to use for my situation. I currently take home $2.4K a month, between my PhD salary and my research management job. So I decided to do some number magic on my own stats for a little comparison. It is time for a little budget review, anyway. Here is how I stack up:

 

Income: $2401.70 take home salary (after taxes, 3% matched Kiwisaver contribution, etc)

50% Needs would be: $1200.85

30% Wants: $720.51

20% Savings (I have no debts): $480.34

These should be my target numbers if I followed this guideline. My current situation:

 

NEEDS (60.4%)

Rent: I'm going to go with $855.83 per month (35.6%) here, but (WARNING): this is complicated. 

My base rent averages out to be $1,137.50 per month, if I take my weekly portion ($262.50), multiply by 52, and divide by 12. Each month will be different, however, based on how many Fridays (rent due date) there are each month. This makes it really hard to budget, but essentially, my base monthly rent will be either: $1050 or $1312.50. I pay 44% of the total rent for my flat ($585 per week) as my flatmate has her own half bath, larger primary bedroom, and personal balcony space. As Head Tenant, I also rent out the garage parking space, deal with all those logistics, and take that income to lower my overall rent.

The garage parking spot rental is why I can even live in the central city in a decent place. It is a pretty reliable source of income but varies depending on the market. A few months ago, I rented it out at $75 per week, and now it is down to $65 per week. Essentially, though, I can pretty much count on some garage parking spot income to bring my rental rate down. My monthly rental income also depends on how many Mondays (renters' due date) there are in a given month. For simplicity's sake, we'll say that this payment follows the same pattern as my rental payment pattern. This brings my monthly rent down to: $855.83 per month on average; $790 for 4 week months, and $987.50 for 5 week months. 

I know that even with all these hacks, my rent takes up a huge portion of my budget, but there is no wiggle room here. This is very, very low rental payment for Auckland. I already have a flatmate, charge the max rate there, and rent out the garage parking spot at the max rate I can. Even moving outside the city wouldn't work, as I'd have to buy a car and add all those associated costs to my budget, plus rentals are nearly just as expensive within commute distance to AKL. I'd also still have to share an apartment to keep costs down. There is the option of getting in a couple instead of a single flatmate, but the toll on my mental health (sharing with one extra person) isn't worth it. To get it any lower I'd need to share my bedroom or compromise in ways I just can't anymore as a 40-something year old adult. I need my own bedroom and a washing machine in the house as a minimum. I like not having to take the bus to work, and being in central AKL means I absolutely don't need a car and could walk everywhere if I *really* needed to. Honestly, guys -- I've tried to look elsewhere. I've scoured the rental market for cheaper options for a single person across AKL, considering all the tradeoffs of not needing a car, mental health considerations, energy levels, etc. They don't exist: this is as CHEAP as it gets, unless my current flatmate moves out and I get a couple in the primary bedroom. NZ is at NYC, San Fran, etc levels of rental and housing costs, and it is all of our downfalls (except for the landlords!!).

 

Groceries: $400 a month (16.6%) I probably could reduce this? I actually only eat 2 meals a day now, and that is helping with the costs. I like my out of season strawberries, though... 🍓😃

 

Electricity/Internet: $150 (6.2%) on average throughout the year. This is shared with my flatmate 50-50. I have no control over how much electricity she uses, and we have the lowest speed fibre package available for internet (I think this is about $70 total for unlimited fibre cable internet per month?). This varies between winter (up to $200 per person per month) and summer (about $100 per person per month). Our flat has a lot of windows and is very drafty/leaky, so heating literally goes out the window, but again, me cutting back on heating (I've tried) does not lower the bill by much. I'd rather be comfortable in my own house. I already put on a sweater, sweatpants, wool socks, and throw a blanket on before putting my heater on for a short stint, and we keep the water heater at the lowest setting possible, so I'm unsure what else I could do to lower this bill.

 

Medical: $50 (2%) per month. I have no idea if this is realistic now; covid and lasik messed everything up here. I pay $190 for a teeth cleaning twice a year plus $90 for a dental check up once a year. For the past few years, I've been relying on my free eye check ups from my LASIK doctor after my surgeries, but this has come to an end, so next year I'll need to add some funding to pay for an eye check up. Every time I see my doctor I have to pay $20 as a funded enrolled patient at my doctor's practice, plus $5 every time I fill a prescription. I have been diagnosed with hypothyroid now so I have been needing to see the doctor a lot more... I also could consider therapy (mental) and phsyio in this, but I haven't started going to those again yet. For now, I only include: 1. GP appointments, 2. dental appointments, and 3. optician appointments. If something goes wrong and I need some dental surgery or similar things will be way thrown off here, but for now I think $50 per month will do?

 

That brings me to ~60.4% of my income spent of on needs ($1,456).

 

WANTS (37.2%)

Eating Out: $125 (5.2%). This varies. I get the cheapest takeout I can find (~$12-$15) at least once a week for dinner to give myself a break, and once in a very blue moon I will treat myself to brunch or dinner at a real restaurant. This could be reduced but I'm not too fussed about it!

Cell phone: $35 (0.015%) per month on average. I have the cheapest data and texting and calling plan ($16 per 28 days) on Skinny that I can find, but most of this goes toward my Skype subscription every year to call the US. I have "United States unlimited mins mobiles and landlines - yearly subscription" that costs $30.50 USD and a "Skype Number, 12 month subscription" for $39 USD per year. That is roughly $100 NZD per year. I add in some extra funding for texting when I've run out of data, and for overseas trips when I need roaming and that $35 per month is about right.

Charity: $30 (0.012%) per month at a minimum. I throw $30 at the NZ Heart Association every month, guaranteed. Sometimes if I have 'extra' unspent money, I also give money to the NZ Coast Guard. Both have lotteries that make me feel like I'm doing good while also potentially winning something! I never expect to get anything from it but the lotteries are a nice touch and motivation. I also give money when I feel led to, for example there is a missing persons case I've been following closely and I donated to the family who is searching for their loved one themselves. 

Misc: $705 (29%). This one is a doozy. It encompasses a range of spending, including: self care (massages, mostly), alcohol, fees, gifts, transportation, travel, entertainment, and the catch all, 'goods and wants' for just when I want to go shopping. This category definitely could go down, but it would mean really parsing out what I need and want. Currently, spending in this category is the only thing that makes me feel sort of free and like I'm enjoying my life. I don't monitor it very closely, having 'honed' and calibrated my spending gauge pretty finely over the past few decades. Usually I have unspent funds in this category, by a lot. For example, I do not *have* to hire a car to get to my favorite massage place and have a 30 min back massage every week, but it sure is luxurious!

This means that ~37.2% ($895) is spent on Wants each month, on average. 

SAVINGS (2%)

At a minimum, I save $50 (2%) each month. This low required savings rate is just for while I finish up my PhD after taking a large salary cut to devote more time to my PhD. Lately I've had $500 or more left over from unspent categories above, and have thrown that into savings. When I get a 'real' job after my PhD, this will change by a lot. I'm hoping because 1. I won't have as much stress and 2. because I will be making more money!

 

 

Missing in here are things like insurance (renter's) and other things I pay for in a one-off fashion, e.g. travel. They get pulled from existing savings pots I have (see sidebar).

 

SUMMARY

To be honest, I am not *too* worried about my budget. It works out well even though my 'forced' savings rate is very low. Luckily, I can spend and spend to my heart's content to feel 'free' and like I'm being pampered within my 'Misc' category, but usually end up under-spending in that category anyway, and any leftovers gets funneled to savings. It works out well for my mental state to not have to focus on reducing and cutting back as much as I can, so I think I'll just stick with my current plan. I'm pretty grateful that I can live off of a small amount (compared to many other PF bloggers) and don't need much to feel like I'm living a high life. The only thing I think I'll really change is just to be even more mindful of the gratitude I feel about this.

Even though I won't be making any major changes based on this exercise, it was really good to do!

Ideal Conditions to Finishing My PhD on Time: A Manifesting Wish to the Universe

 This tweet caught my eye recently

 

https://twitter.com/sarahshulist/status/1426154203198672899

Hear, hear to that! It got me thinking...what sort of accommodations and help would I need to fully concentrate on my PhD and get it done on time?

1. An ergonomic workstation: chair, computer setup, etc so that my back/neck/wrist was forced into perfect posture while working.

2. Someone to cook, clean, grocery shop, meal plan, run errands, organises my life etc for me so I didn't have to worry about any of that. 

3. A (much) higher salary so I didn't have to budget or keep track of finances too carefully. With more money, I could also rent a place more conducive to writing...maybe with a home gym, heated pool, yard, etc in an idyllic bush setting near the beach for better mental well being.

4. A trainer and physio to keep my body on track. While we're at it, an on-call masseuse to fix my back every day. 

5. A knowledgeable supervisor who attends meetings, knows how to answer questions clearly, can guide me well, and is an expert in the subject matter I'm studying. This...actually should be first on the list.

6. A 'Mom' figure who gets me up every day, makes sure I take breaks regularly, gives me hugs every day, listens to me when I need to vent, and forces me to go to bed at a decent hour. Basically, a person who does for me what I cannot do for myself.

 7.  A computer expert who backs up all my work and fixes all my stupid computer admin problems for me. There is nothing more frustrating than sitting down to work all motivated only to find out your computer had decided it needs to shut down and install a bunch of updates to random programs.

8. A social advisor who arranges fun trips and outings for me with friends with no work involved. Oh and a driver so I can drink. 

9. Someone to maintain my wardrobe, waxes, haircuts, physical appearance, etc so I don't leave the house in the clothes I wore to bed the night before (I really gotta stop this, it's getting ridiculous). 

10. A family/loved ones who I do not need to take care of or worry about. Hmmm...maybe this should be first on the list, and the supervisor should be second?

11. A live in therapist. I desperately need one. Maybe add in there a diagnosis for my suspected ADHD, and some meds.

12. A better University with true mental well being support for students and staff, and much lower standards and expectations during times like pandemics.

13. A world that has a true future and isn't literally on fire. Can I actually make this joint triple first with the good supervisor and family who needs no fussing over?

 

Goodness. I mean, how hard could it be, Michael? It's just a banana... 😂  No sweat. At least it is all out there in the Universe -- now for the Law of Attraction or whatever to do its job.

2020 Goal Review, Laughably

Oh this is going to be ridiculous 😂 

Until just today, I haven't had the stomach, time, energy, motivation, or mental strength to even glance at the goals I set for 2020 back in The Normal Times. To be honest, I'm not sure I'll get through it in one go here, either. But I'm finally ready to just look at them. 

Deep breaths. Here we go!!

 I start off describing how I have decided to 'ease up' on myself with goal-setting because my life was getting overwhelming. Oh, you sweet summer child...

"As I mentioned in my 2019 goal update post, I have lost a lot of will to do new things or discipline myself in some areas of my life. I think I need to ease up on the goals this year as it's just no use."

This has only gotten worse. So much worse. 😢 

Next I describe my 'base goals' -- the ones I have to do no matter what. I capped them at two things:

"Included on my list this year are mainly things that absolutely HAVE to be done anyway, and two things that I would like to work on:

1. Go to the office every day (when I'm not ill, of course). I stay home to work a lot. I think I need a reason to leave the house.

2. Make a plan to exercise every day, whether this happens or not (this usually gets done during my weekly planning).

Fixing my sleep schedule and dating are no longer goals. I completely give up on both of these things."

Oh my god, I'm laughing so hard. 😂 "find a reason to leave the house?" Did I ever bring this pandemic upon us or what. Obviously this hasn't happened, and I've just burrowed deeper into my hole and actively do not leave the house if at all possible now. If I thought I stayed home to work a lot then, what would Past Me think of me now??!!

Exer-cise...what is that? Yeah, nah. I'm so unhealthy it's not funny. My past plans all relied on good weather, motivation, and my gym membership and their class schedule. I haven't been to the gym since last Feb/Mar.

 

Next up is a list of my financial goals. Things were so overwhelming in the middle of 2020, I cut my part time job down from half time to 0.3 FTE, so I'm really thinking I did not meet these:

"Financial Goals

1. Revise 2020 budget if I end up quitting my job and moving back home to finish up my PhD.
2. Review insurances, will, and Master Financial documents.
3. Get the above in a specific place that only my trusted loved ones know how to find in case of an emergency.
4. File US taxes.
5. File state taxes.
6. File FBAR.
7. File NZ taxes. 
8. Cancel basic Renter's insurance (including public liability) if I move to the US. In 2019, it was $358.42 for $12K with $1K excess. 
9. Look into health insurance for my US trip/move home. Research options like Medicaid as I will be low-income.
   
10. When I am in the US in Sept/Oct, check Experian and Equifax credit reports from the US. Check TransUnion after October 13. Continue to check in on my scores quarterly via CreditKarma. (Note for future years: Equifax made me call in: 877-322-8228 to order my report--they refused me online.)
11. Use airpoints for travel as often as I can.
12. Apply for cc's strategically: see here. 
13. Save $500/mo to long-term House DP goal for a total of $50K.
14. Take a break from saving $500/mo. Create new goal when moving plans are sorted.
15. Put overages toward short term goals like my PhD Fun Fund.
16. Track every penny and stay out of debt.
17. Track peer to peer lending and contribute more $$ to high risk loans to maximize interest profits."
    

My reaction to all this:  Not terrible, not great?

#1: I half-quit my job, and kinda moved back home for a little while. I had to revise my budget to do this. Moving back home permanently and finishing my PhD from there is still kinda on the table. 

#2 & 3: nope. just no time or energy for this. The future feels doomed so I tend to avoid everything further in the future than the next year or two. 

#4 - 7: Yeah, obviously I did these. For legal reasons of course.

#8: I still have renter's insurance. I'm renting (duh).

#9: I made some inquiries into Medicaid while I was home, and we concluded I wasn't eligible. I ended up buying a short-term health insurance policy for my time in the US. I didn't use it but I would have felt so vulnerable being in the US without insurance.

#10: I think I looked at a few(?) of my credit reports while in the US, but not all of them (?). I can't remember, and I don't really care. I keep track of my credit score via CreditKarma.

#11: Yep. I even splurged and used airmiles to pay for my first first-class long haul flight back to NZ in July 2020. It was amazing and I felt a lot better flying during a pandemic with first class service than I would've otherwise.

#12: Yeah, this went on the back burner until recently. Am back on my game now.

#13: Done!

#14: Still on a savings break officially, but I've been doing really well lately and have been able to save $500 a month occasionally still. I probably won't make a large monthly savings goal again until I'm finished with my PhD.

#15: Yeah, but my savings now go to new goals, mostly planning for the next few years, travel (knock wood) between hand in and my defense and a post-defense trip, and a new job/life/move fund when I know what I'm doing after my PhD graduation.

#16: Yeah, this is still on track.

#17: Yep, still going with this.

Not too bad, actually!!

Next I outlined my travel/Experiences/social goals. Oh boy:

"Travel/Experiences/Social

1. Research/fantasize future trips (post-PhD) when I need a pick me up: e.g. Cook Islands, Hawaii, Iceland, river cruise through Europe with my mom and aunt.
2. Talk to friends about coming over to NZ for my PhD graduation + trip afterward.
3. Think about Belize 2022.
4. Find something fun and social to do for Xmas and New Year's Eve 2020." 

Well, I think we all know how this went. I continue to *think* about travel and social experiences, but I have not done the above things, quite obviously. My headspace now is ever more introverted, too, so I doubt these will change much in the next few months.

This brings me to my Learning and Projects Goals. I have little faith:

"Learning/Projects

1. Practice Spanish as often as possible (Duolingo).
2. Create a regular practice of doing splits/stretch/yoga.
3. Try meditating before going to bed."

#1 report: I gave up on Duolingo during quarantine last March. It just became another thing to do and I couldn't handle the stress. I am also not convinced it works. I would definitely try a Duolingo for te reo Māori, though. 

#2: nope. 

#3: nope.

 

The next goal list has to do with career:

"Career

1. Try to finish up my PhD. 
2.  Notice when I am being exceptionally harsh on myself and use my compassionate, kind voice instead of my self-critical voice.
3. Celebrate tiny 'wins.'
4. Practice self-care (therapy, self discipline, breaks, ask for help, etc.). 
5.  Revise/update my CV with new talks/outreach/publications."

 #1:  Nope. Maybe 2022.

#2: I have no energy for this. 

#3: ditto

#4: nope

#5: ditto above

I basically am doing the bare minimum that I *have* to do to keep inching along. Anything more than that is too much. I am seriously considering suspending my PhD until I'm in a better headspace.

Next up, Health. Oh, this is going to be a joke, too:

"Medical/Physical/Mental Health

1. Do weekly meal planning. Try to stick to $50/week budget for 3/4 weeks of the month.
2. Take time to organise my week every weekend. 
3. Track progress on blog to be held accountable.
4. Floss every day.
5. Get normal yearly check up, +thyroid levels.
6. eye surgery follow up appt: Scheduled for January. Now March, hopefully the last one!
7. eye appointment for reading glasses prescription.
8. Get flu shot.
9. Get dental check up. Scheduled for January & May
10. Make dermatology appointment. Treat eczema. Try taking showers instead of baths, keep food log.
11. Treat yo'self! Right now, my favorite treat is a weekly massage.
12. Find new physio.
13. Avoid twirling my hair/find another way to manage my stress.
14. Use break reminders and internet blockers strategically.
15. Find new therapist for PhD + social/interpersonal relationships & microresolutions.
16. Keep a log of foods that obviously make my stomach upset or make me feel off somehow." 

 There is too much here. I'm overwhelmed just looking at it!

#1: Still do this. I've been trying to get it to $50/week and it works sometimes. I need to eat down my pantry--I tend to go into hoarding mode during emergencies and this is exactly what I've done since Mar 2020. I really should pare down my belongings and food (while keeping a small emergency stash of key items in case of lockdown runs on the supermarket). 

#2: Yeah, sorta still do this. 

#3: Nope

#4: Yes, actually!

#5: I'm in the middle of a thyroid medication treatment to get the dosage right. I have an appointment for my normal annual check up. 

#6: Oh my god. That last March eye appointment follow up from lasik was rescheduled so many times due to pandemic issues. It finally got done a few months ago. 😂 My next eye appt needs to happen next June-ish.

 #7: my reading glasses seem ok for now. 

#8: Done! got my flu shot in 2020 and 2021.

#9: Yep, I keep up with my dental appts.

#10: nope. I do bathe with oatmeal soap now (since April 2021), and this helps soothe my skin massively. 

#11: I keep up with my weekly massages pretty well, unless there are lockdowns.

#12: nope. I desperately need to go to a physio though. My whole body hurts badly, all the time.

#13: Uh. no. My stress is through the roof. I do whatever I need to do to cope.

#14: No. My internet coping mechanisms are the only things keeping me going right now.

#15: I desperately need a therapist. 

#16: I keep a mental list but need to do better at this. My fave white cheddar popcorn that came in a box for me from the US didn't seem to bother me this time around, but the cheese puffs did, interestingly. Vege crisps and sour cream and onion flavoured items don't sit well with me. Generally, my stomach/digestive system has problems with most junk food that I love, basically 😂

And finally, the 'other' category:

 

"Other

1. Back up new laptop computer several times a year: January/May/November.
2. Test that google back up goodsync is working to back up my google drive at work in February. Make ISO of HD twice a year (March, November)."

 I did OK at this. I have new large capacity hard drives for back ups. One in the US, one in NZ. I need to pay more attention to this. I am missing at least one big file -- a summary of some research I did into the ancestry of my grandmother on my Dad's side and what may have happened to her during WWII. I think my work back up system is working OK, but again I need to go through this thoroughly in case the worst happens.

Summary: Whew. Honestly, since I basically gave up on life late 2019/early 2020 already, I didn't do too bad at meeting my 2020 goals. I'd say I hit maybe half of the goals? I haven't counted, and I'm not going to. It's better than I thought. 

Maybe in another year and a half I'll have the stomach to make goals for 2021? 😂

July 2021: A Net Worth Goal Surpassed!

Latest financial/life news alert!:

• Went on a short road trip about 2-3 hours drive away from the city (2.5 days, took 1 day off of work). it was beautiful and I saw a lot of cool stuff, but my brain didn't get fully into it for some reason. Travel has always been my #1 favorite thing, but I didn't feel anything really. I could have been at home for all I enjoyed it. I'm annoyed at myself because I live in a beautiful, covid-free place where traveling is possible
• I applied for two credit cards and got approved. I have a 1) first purchase gets 60K American Airmiles and 2) $2K gets 70K miles on Hawaiian Airlines. Sounds like a great haul!
  
• my garage renter is leaving left and there is a glut of parking spots near my place, all advertised for $10 per week less than what I'm currently charging. Even if I can find a renter, I'm going to lose $10 pw in income to compete. I might even lower it by $15 pw just so I am sure to get any renter. I found a renter but at the $10 pw-less price. They can't start til end August, unfortunately, so I lose about a month of income, but it had been over a week and a half with ZERO bites so I accepted them as the renters as they were super keen. OF COURSE, right as I was prepping the lease to send to them, I got another bite from someone even longer term who was interested in the spot right away... DANG! it is too bad that I am a person of my word. That is costing me a ton over the month of August. at least I have my integrity?
  
• Ever still, I'm paying for my groceries using my US stimulus money. I just charge it to my US credit card. That helps a ton. when that runs out I'm gonna be in trouble.
  
• My scholarship ran out but was extended til next July. If I don't get my PhD done by then, I will need to find an alternate source of funding. Or work for free to finish. 
  

July 2021 budget

Income: $3,185.84, made up of 2 PhD checks, 2 work checks, 3 weeks' garage rent, and a $500 overage from June.

Rent: $1,312.50

Groceries: $253.64

Internet/Electricity: $0 (roommate hasn't told me what my share of the bill is yet)

Eating out: $152.08

Charity: $30

Cell phone: $42

Medical: $0

Misc: $838.90

Savings: $50

Total spent: $2,679.12

Overage: $506.72 ($500 transferred to savings)

 

Misc spending: $838.90

Self care: $302 (mostly a massage once a week, my main treat since my back is so messed up and aches all the time)

Fees: $108

Gifts: $7

Goods and wants: $237.60

Transportation: $115.30

Travel: $69

 

Net Worth (NZD-USD same value): $220,546.62

Things are going OK with the Net Worth. Stocks are doing well it seems. 

US Funds (Traditional IRA, Roth IRA, non-retirement brokerage): $41,808.41

NZ Funds: $160,738.21

      Savings: $84,242.62 (see side bar for funds)

      Bonus Bonds: $160

      Lending Crowd: $6,286.24

      SuperLife (NZ retirement scheme): $76,495.59

 

My net worth in USD has crossed the $150K mark! FINALLY! Hallelujah! It is super depressing to see my net worth grow so slowly after putting in so much work since I was ~26!! However, positive growth is still growth! Esp on a very low PhD salary. I can only hope that once I'm done the money rolls in and I can make up for all the lost time...