The past few months in the a Life on a Dime house have been a bit different. Since February we’ve officially been a single-income household. This has come with some trial and error revisions to the monthly budget. We’ve also changed our budget to reflect on new money goals.
Life changes from time to time and with it your new goals and your monthly budget. Our family is certainly no exception. Here is a look into our family’s new money goals as well as a little life update.
NEW MONEY GOAL #1: MONEY MARKET ACCOUNT
Last year we accomplished our emergency fund goal of three months of living expenses! It was very exciting to reach that milestone. Since this money is not to be used for short-term savings goals we decided it was time to set up a higher interest account for our emergency fund.
While the interest rate is not currently any higher in our money market account than our regular savings account, we now have our emergency fund nestled away on its own, and should interest rates increase we will see that reflected in our money market account sooner than our regular savings account.
Since we do not have enough money in our fund to earn a significantly higher savings rate it’s still at our local bank, giving easy access to funds without the need for additional checks or a new debit card.
Obviously, once we reach our current short-term savings goal (see money goal #3 below) we will set a goal to increase our emergency fund to six months of living expenses. We’re a ways away from that though, and that’s okay. We have a safety net and that is an amazing feeling.
NEW MONEY GOAL #2: AUTOMATED SAVINGS CHANGE
Since we are still adjusting to being on a single income and the fluctuating overtime pay the hubby receives paycheck to paycheck I have decreased our automated monthly savings. This will hopefully prevent transfers back to checking.
This new money goal doesn’t mean that we’ll settle for saving less money every month though. Whenever possible I will make additional transfers. Just last week I transferred half of the hubby’s overtime to savings.
I highly recommend going back over your budget at the end of the month. It allows you to see patterns of over or underestimating spending in certain categories so you can adjust your budget going forward. It also gives you the opportunity to see if you have additional funds left over to put towards your savings or debt reduction goals.
NEW MONEY GOAL #3: GARAGE BUILD
So this money goal isn’t necessarily new to us, but I don’t remember sharing it with you previously. We’re saving up to build a garage. We’ve set aside money from our automated savings as well as our tax refund to make headway on our goal.
To save money the hubby built the forms and prepared the site for concrete work himself. We recently hired out the concrete work and we now have a 22′ x 26′ concrete slab.
The hubby has since poured a sidewalk extension and a step up to the slab. While we work to save the money for the building the kids can enjoy a spot to ride bikes and scooters. And the best part is that while it may take longer to get the garage built, we will have incurred no debt during the process.
If you live in Northwest Arkansas and are in need of concrete work we highly recommend 479 Concrete Crew. They did a great job and we had a slab poured within a week of getting the estimate.
NEW MONEY GOAL #4: SUBSTITUTE TEACH
I am currently in the process of going through all the background checks and online training to become a substitute teacher in our district this fall. It will be easier once the little man is in kindergarten (not sure how that’s possible) to work during the day.
This will also ensure I keep the same hours as the kids. As a bonus, since our daughter already rides the bus home I can simply arrange for them to ride the bus to whatever school I am assigned to on days I work. I hope to do this two to three days a week.
The extra income should come in handy with our new money goal #4.
NEW MONEY GOAL #4: EATING LOCAL MORE REGULARLY
This may seem like a strange money goal, but I’m including it. Last weekend we visited a local coffee shop/bakery for breakfast and coffee with the kids. Not only is the atmosphere a little more personal when shopping local the money stays in our area.
So we’ve made a point to budget money to eat local. It might seem more expensive, but a few trips to the drive-thru or chain coffeehouse add up just as quickly. Why not get more out of the experience and help the local economy at the same time?
I also look forward to visiting local Farmer’s Markets more often this season.
HAVE YOU EVALUATED YOUR MONEY GOALS & BUDGET RECENTLY?
If you haven’t I highly recommend doing so. It’s important to make sure your budget aligns with your values and goals as well as your income! That’s it for our current goals and life update. Feel free to share your new money goals or accomplishments in the comments! I love to hear from you. And don’t forget to subscribe as a Frugal Friend so you never miss a post AND get your free weekly newsletter on Meal Plan Monday. Until next time, stay frugal and healthy my friends!