There was a point last year when I realized that my Accidental Hipster ways had opened up a lot of possibilities for how I could restructure my life. I wasn’t happy with how I was living and as I worked on my personal life (it was a mess) I was also pushing the envelope on how I approached my financial life.
April 1, 2014 was the last day of my year long No Shopping Challenge. I discovered that I was averaging around $4000 on clothes. What the?!! I could have invested that money, paid off debt with that money, or built up my emergency fund.
When you don’t shop for a year it frees up a lot of time to think about why you shop and just money in general. I realized something pretty straightforward, but surprising:
Your Budget Is An Expression Of Your Values
When I looked at my 2014, 2013, and 2012 budgets I realized that I had a couple of obvious and not so obvious problems:
- Debt
- Lack of organization
- Lack of financial awareness
- Used the lack of organization and awareness to live my values
What Were My Values?
- People-I didn’t get to spend as much time as I would have liked with the people that I love. I did get to visit my Grandma and it was awesome. I also spent more time with my mom which was a challenge given my schedule-I made it happen and I’m glad that I did.
- Fashion-I really feel that when I am well put together I exude more confidence and self-assuredness. I just think in looking at that expense (especially living in Colorado) that it was WAY too high. Not shopping for a year taught me to value what I already have
- Travel-I incorporated seeing loved ones and also spending time with my mom in this category. I also went on a couple of amazing trips through my old job to: Montana (Bozeman and Yellowstone), St. Louis, and San Diego. Trust me, I earned those trips.
- Good food-Hey, Denver and Boulder finally have a great food scene, however, the bulk of my food spending was on GROCERIES! This might also explain the extra 30 pounds
- Fun events-It’s almost overwhelming to see how many things there are to do in Colorado. Theater, Snowboarding, Eating Out, Sporting Events, and the list goes on. I had to really, really work the deals in order to save money
- Fitness-I was going to the gym but didn’t have as much energy as I would have like to go regularly.
Was There Anything Wrong With My Values?
No.
In fact, I was doing a lot of things right in terms of staying true to what I valued. I just needed to tweak some things and change some of how I thought about lack, and appreciating what I had. In order to really extend my money I really had to dig deep last year and I became a lot clearer about my what I value and what is important to me for 2015:
Values Revisited 2015:
**Costs discussed in this section are for the year**
- Spending time with people-I love going out for a nice cup of coffee and just talking for hours with my friends. Nope, I’m not going to stop doing this so don’t suggest that. It’s just a part of my entertainment budget. However, I do love: hiking, biking, and walking around for hours with the same friends so we also do a lot of free things as well. I have budget $200 for coffee outings. I also have gift cards that I will use initially before using my own money. Total Cost after gift cards: $130
- Spending time with people II: Happy Hours and Fun Events: I tend to go out more from April-October so the bulk of my fun budget spending happens during that time. I am looking into ways to go to Happy Hour every other week during those months. Total Cost: $500 (Will use coupon deals, etc) That’s about what I spent last year. Emphasis will be on free events though.
- Exercise: I paid for a year’s membership at the Denver Recreation Center. There was a Black Friday Sale so I paid $270 for the year. I also picked up some hot yoga Groupons for about 6 months of yoga for around $130. Total cost: $400 (already paid)
- Fashion-I’m using what I have people! I totally updated my wardrobe last year for 1/2 of what I had been normally spending in previous years. This year I don’t see the point of spending a lot of time shopping as I have a great wardrobe already (and nice shoes). So, I won’t be doing a No Shopping Challenge officially but my clothing expenditures will be capped. Total Cost: $250 (I have to pick up a nice cocktail dress for two posh weddings)
- Travel: I do have trips planned for 2015. That said I have earned a ton of mileage points for next year. Basically, my goal is to redeem my mileage points for the different places that I will be going to. Also, I will be staying at friend’s places, AirBnB whenever possible. I am hoping to earn AirBnB affiliate credits to apply towards those stays.
- FinCon15-I am hoping to spend no more than $500 on FinCon15. A lot depends on the destination. Total: $500
- Financial Security!!! This one would should really be called-Savings. But for me that’s what it really represents. I will be fully funding my Roth IRA and am currently looking at other savings tools to use starting the end of this month: Total: Not sure??
Rest of Budget:
- Mortgage: $600 (yep, that’s all I pay)
- HOA: $50
- Electric: $50 (on average-it’s higher during the winter months as I refuse to be cold)
- Phone: $25 Republic Wireless (I will be trying to grow my R.W. affiliate sales to cover this cost)
- Fun: Will be rocking free stuff as MUCH as possible so I will be leaving this blank for now. I am trying to figure out an average. I took a shot at that in December, but I think it’s a little too high!
- Groceries: $1680 for the year is more than enough for one person to eat well with a well-stocked pantry and a meal plan-I rock both. I will also be alternating $40 grocery months after my grocery challenges form the past! I also have a Community Garden Plot and will be growing food during the warmer month. Total Monthly average: $140 a month
- Internet: $50
- Transportation: $30 (I will be walking and riding my bike a lot) the $30 is for using rideshares or taxis at night
- Cash Savings: $100
- Emergency Savings: $150
- Debt Repayment: $1000 (includes Student Loans/Credit Cards/Extra Payments)**
- Roth-Still trying to figure out the right amount to contribute for the year
- Travel and FinCon are still being thought about.
- Health Insurance: $240 (includes dental)
Total: $2385 (right now)
**Extra money and windfalls will go to accelerated debt repayment**Once the accelerated payments are done that money will become savings.
I’m Not Buying:
- Personal Products-I have every single thing you could think of… go ahead and ask me if I have it!
- Household goods-Using everything already in my place
- A Car-decided to just say “No” to a car. I will be walking, riding my bike, or taking the bus.
- Clothes-I already have enough
Does your current budget reflect your values?
Could you easily shift things so that it does?
Are you satisfied with your budget for 2015?
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I am an obsessive foodie, but not self-righteous with it, love travel, meeting new people, helping you look good, and am freaked out by people who don't enjoying reading...something! Grab a Perrier, read my blog, feel free to drop me a line! Hope to hear from you soon.
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On 12th of January I will start 6 month of shopping ban but I keeped my daily coffeee with friends, is so nice talk watching pepole really into their faces!!! However your is good plan:D
Good luck! You can do it! I love having coffee with my friends. I just order the smallest size and savor every sip.
First I have to say that I love the facelift of the site. It looks great! Next, even though I am a PF Blogger I could never create a budget like you have. I need help….no really I’m paying the debt off, but I’m doing it ninja style. Just picking up slabs of money and throwing it at my debt. I have stopped spending a lot of money on clothes but I have a 8 year old daughter and she is my living black Barbie and I do tend to shop quite a bit for her. I have created a budget for her clothes so I can make sense of it all. I think you have a great plan and I look forward to see what happens.
Petrish, I was my mom’s barbie and honestly-I learned bad money habits concerning consumption from her (LOVE YOU MOM!) Just remember that every money decision you’re making is being observed by your daughter. It is no surprise that I became a big shopper instead of a saver. She loves you and there is money that could be invested and grown on her behalf that won’t be grown out of. She doesn’t have to look bad…just involve her in the conversation. Less is not bad. The less crap I deal with the happier I am. I’m serious.
As an adult only child I’ve had some really interesting conversations with my mom. The one that resonated the most was talking about all of the STRESS lack of money caused us. You are a rock star, and I think that you will get a handle on things-every day you’re trying and that’s the key. Remember-we are rooting for you.
Try shopping second hand for your daughter, I find lots of cute stuff in kid’s consignment stores for a fraction of the price. I agree with Michelle treating your daughter like a princess is fun but is no good for her as she gets older. Take my word for it as kids get older they get more and more expensive. Learning skills with money along the way helps!
Good for you on the car-free living! I call it car(e) free living. 🙂 I get so much more exercise since giving up my car. You mentioned posh weddings, so I thought I would offer that I went to my sister’s wedding entirely in thrift store clothes and got great comments on how good I looked!
Most of my wardrobe is thrifted because there is a magical Goodwill in my area-seriously, it’s magical. You would love it. But, I would like to get a new dress for these weddings. I can’t wait!
My budget does reflect my values, however I plan on a much shorter term basis than you do-monthly to be specific. So much changes month to month with freelancing so I can never really project too far ahead. So each month before it starts I think of everything I might be spending money on and plan accordingly. Although I do spend a lot on groceries (because it does align with my values), I am trying to reduce that this year. I don’t NEED those extra little things like kombucha. 🙂
Kombucha is so sparkly and delicious. I have always done a budget this way but I also “tweak” it depending on what happens during the month. You make a good point about unexpected expenses or annual costs that we get hit with. You could learn how to make Kombucha like one of my friends does. It’s a very fascinating and weird process 🙂
Love this, Michelle. I absolutely agree that your budget is an expression of your values and it’s a great way to look at it. I suspect if more people thought about budgets that way, they wouldn’t be so opposed to them. 🙂 And I love, love, love that while you’re stilling focused on getting out of debt, you’re also not afraid to set aside money to do stuff you love (i.e. values) like going out for coffee. There has to be a balance and $130 is a very reasonable sum. Best wishes for another successful year, Michelle!
Those gift cards come in handy!! I’m just not going to stop going out for a lovely cup of coffee. I DO make the bulk of my coffee consumption, but I think people tend to deny themselves things that would make them happy in the name of budgeting/saving money/etc. As I am already doing things like not buying a car, not going for coffee too would be a little unreasonable for me 🙂
I love your budget and the reflections you shared as to why you set it up how you did. Great job!
Now, I just have to stay focused.
I am so impressed that you can project your budget for the entire year. I guess when you plan to spend in line with your values it makes it easier. Way to go!
My budgeting was a little easier to do in the last couple of years after I spent time observing myself-LOL! I think we are all creatures of habit. So I looked at the last 3-5 years and then spent time thinking about what I consistently enjoyed doing. For example: I love, love, love riding my bike around town. I have ALWAYS liked this…since I was a 4 years old and got one of my first bikes (I have a picture). I love Colorado sports teams (I was a cheerleader for 6 years-I like sports) So, I know that I will want to occasionally go to a sporting event. I love to travel-started from birth. So, instead of denying these things I have to focus on other parts of spending so that I can enjoy what I have always enjoyed doing 🙂
I decided for this year to take my clothing expenditures 2014 and put it in my travel fund (whatever I spent in Jan 2014, an equivalent amount will go in my savings at the end of Jan 2015 and so on). I spent several thousands on clothing purchases. I think it is because I was unhappy with my appearance, which, frankly, clothes won’t help. All my ‘old’ clothes were perfectly nice. But at some point my running slacked off…. so I’m on a no shopping and more running challenge for 2015. Which is going great so far.
I love that idea!! I wonder where you will end up traveling to? Are you going to sign up for a race? I’ve decided to run the Colfax 1/2 Marathon in Denver I’ve talked about it off and on for years. Now, it’s time to get it done. I’ve also felt self-conscious about my physical appearance as I’ve gained 30 pounds over the years. To friends who haven’t seen me in a long time it catches them off-guard. I am really focused on losing the weight so that I can feel a lot more confident…and so that my joints will stop hurting!
It is so, so, so true that your budget reflects your values — also the way we spend our time. I like that your “budget” includes that, in a way (time with your friends and family, time to travel, time to cook.) As to mine, I would like to be allocating much more of it to charity, but other than that, I think I’m doing ok with reflecting my values at the moment. I’m combining travel with seeing beloved friends and family, spending money on good but not extravagant food, and spending relatively little on rent and transportation and buying things — with the rest going to savings. It’s pretty stripped down but I feel ok about that.
Most of my travel now is also very much aligned with cultivating and maintaining relationships. It’s so much fun visiting my friends that I’ve had for a long time and seeing where they live and how they live in their home countries. I do really miss volunteering and I am looking forward to spending time with organizations aligned with my values. At this point I really don’t want to spend time on stuff I don’t care about anymore. I’ve done that for far too long.
Your budget is definitely a reflection of your values! This year, I’m focusing less on what I don’t really value (high-end fashion, crappy fast food, etc.) and more on what really matters (time with family/friends, relationships, etc.)
It’s all about people and friendships for me in 2015. What’s the point of life without connections to people?