April. Was. Wild. Super fun and super busy, and even super stressful at times. High earning, high saving, high spending. Definitely not a typical month for us!
This month we had more income than the previous three months combined. Between a three pay period month, tax return, stimulus and me filling in for a day, it was already kinda bonkers. Then added to that, Philip had to work a decent amount of overtime (not by choice, but because of responsibility). So two of his three paychecks included some overtime on them. It was a month that was anything but typical, but it gave us a lot of flexibility and opportunities to save! We were able to fully fund our Roth IRAs for 2021, hooray! On top of that, we transferred money to our savings account and have officially started the “KITCHEN RENOVATION” budget! It is far from where it needs to end up, but it’s started!
So between our normal retirement contributions and the Roth contributions, as well as money transferred to savings, we ended up at a 64% savings rate! Bam.
With increased earning, we also took a few liberties with our spending. I mean, I felt it was our American duty to use our stimulus to actually stimulate the economy. Right right right? And also because Philip works really hard and had worked so much extra and was a little bit on the miserable side of things. So I blew our Hobbies/Entertainment budget right out of the water and bought Philip a OneWheel. If you haven’t seen them, they are essentially an electric skateboard with one giant wheel right in the middle. They are super fun and super cool but not super cheap. Oh well, YOLO, right???
We also weren’t great with our eating out budget. And by that I mean we ate all the food. Oh well. Better luck next month. I’m choosing not to beat ourselves up about being meticulous in every budget category because we still had a high savings rate. So yes, we could have saved more if we ate at home more, but let’s be real. Food is delicious, and eating at home isn’t always as delicious.
And we actually came in under what I had budgeted for us for vacations! We had hoped to go Monterey but cancelled due to the aquarium being closed, so instead we opted for renting a cabin just a couple hours away and it was perfect. And aside from the rental itself, there really weren’t a ton of extra expenses to eat into our vacation budget, hooray!
$1.56 from Amazon, thank you very much. That was left over from the Amazon book sale. We earn commissions on items as they ship, so a few items were a bit delayed.
Even though April is the month that we had higher income, May is the month that I plan on having higher spending. And not really on anything terribly big, just things that I know will add up. Hair appointments, me being vain, swimming lessons for the kids, photos of the kids, a quick anniversary trip, and childcare for both that trip and also for me filling in at work. Wait, what? Yep, I am dipping my toes back into the dental hygiene pool. My previous office has asked me to help out for a bit and I was happy to say yes. It will be just one day a week, but I think that day will do wonders for my mental game. So May might be another month that looks a little atypical.
Some months, finances just aren’t at the forefront of our brain, and that’s okay! I think that’s why it’s important that we’ve automated so much of our saving so that we don’t have to think about it. We also are grateful that we could put our tax return into Roth IRAs for the year. I know that a lot of people prefer to get as little money back as possible (interest free loan to the government, yes we are aware) but for us it’s nice to get a chunk all at one time and just slide it over all at once. Personal finance is personal! So we do what works for us and hope you do too!