Are My Finances Getting Out of Hand? Or Is It Just Summer?
During the last 2-3 months, my monthly spending has increased significantly when compared to the 6-9 months before it. Is my spending getting out of hand? Or is it just summer in Minnesota? Perhaps this is happening to you, too. When spending increases like this over a time line of a few months, how can you tell if it's just seasonal or if you are letting loose of your finances? It's tough to tell, but let's take a closer look.
Where Has The Money Gone?
If you're using financial software such as Mint.com like I am, you can dig deep to find out just where your money has been going during these times of increased spending. For me, the spending increase happened in April of 2012. It continued in May and it is already looking quite high in June, as of today, the 27th.April's Spending - In April, I spent $1,100 more than the previous month. Right off the bat while looking at Mint.com, I see that I paid almost $1,400 in to the government that month to cover my taxes. Ouch (and yes, I know I should fix my withholding)! Well, I can stop right there and say that I didn't overspend in April. It was just playing catch up that hurt me a bit that month.
May's Spending - I was $400ish over my normal budget in May. I did have my annual car license tax due that month for $179. The rest of the money went to shopping, where I bought $150 running shoes and a couple of additional accessories. Well, it's safe to say that I did spend more this month when I had the urge to shop. Do you think it was the urge to shop or the urge to get in shape that was my real reason for spending big bucks on new running shoes? I'm not sure. I think I want to blame the weather for it.
June's Spending - I'm close to $600 over normal this month. To start out, I booked a $750 trip to the Financial Blogger Conference, which is in Denver in September, this month. All went through on my debit card except for the hotel room, which ended up being $418. The other $200 was spent shopping, there I bought $60 in running gear, some extra gas for my car to road trip to see my friend this past weekend and on time spent with this really great girl I've been seeing!
After digging in to it, I can't see how my increased spending is related to it being summer. You could argue that the running gear is though. I attribute that to my urge to get in better shape and become healthier. The taxes and car fees were timed expenses and ones that I didn't go buy something to incur. The dating spending is due to me having found someone I really like spending time with.Even While Spending A Lot More, I'm Doing Okay
All in all, I think I'm doing okay. I'm spending more than normal, but a lot of it (the running, the Financial Blogger Conference and the dating) is really positive and definitely worth every penny. The lesson here to be learned is, I could not have done an accurate analysis of my spending if I hadn't been tracking my spending, even through these months of loosening my belt. The second major point is that I wouldn't have the luxury of being so chill about my increased spending either if I hadn't been living way below my means in the first place. If I had a fancy car, fancy house, fancy other things and had been taking major vacations, I would probably be in a mess right now. Instead, I'm doing A - OKAY!Enjoyed this? Get new posts by email.
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11 Comments
- krantcents says:June 27, 2012 at 9:52 PM
I just bought a new refrigerator and I need a replacement bulb for the TV. I plan on buying a new car in the next few days. I have minimized the impact with zero interest and savings.
- Michelle says:June 27, 2012 at 11:09 PM
My spending has definitely increased also! Things keep coming up but I hope it slows down.
- Kraig @ Young Cheap Living says:June 27, 2012 at 11:10 PM
Yeah, I know the feeling! Yuck.
- bogofdebt says:June 28, 2012 at 8:52 AM
My discretionary spending hadn't increased until this last week! Ugh. But I'm working on a new plan and will be sticking to it. So I don't think it's necessarily the summer--it was actually a new baby that led to my downfall. I have been spening more on other things but for the most part it is planned and budgeted for.
- Kris @ BalancingMoneyandLife says:June 28, 2012 at 10:48 AM
We spend more in the summer too - we re runners and triathletes, summer means race fees, bike repairs, and some new gear. I try to save year round for it so that we have a cushion saved up to cover the extra summer expenses. This year we seem to be spending more than usual, I may have to look at how much we're putting away for these activities!
- Brent Pittman says:June 28, 2012 at 4:20 PM
Sounds like you've got some positive things going in your life. Congrats on the dates!
- Canadianbudgetbinder says:June 28, 2012 at 6:05 PM
Spending always increases for us in the summer but mainly on household repairs and projects. For example I'll be paying out around $3-4K just to landscape my front yard next week. That's only for materials as I'm the labour. I can only imagine what it would have cost me. Then there was the 9 hanging baskets, 2 huge flower pots, 2 ferns, seeds for the garden, soil, mulch etc etc... So ya! In the summer we spend alot more than the winter, but the good thing is we budget the money for these expenses. Cheers!
- AverageJoe says:June 29, 2012 at 8:20 AM
I like your final point. Most people have no idea whether they're over or under their usual month. By knowing, you're able to ask the question of whether it was worth it or not. Sweet!
- maria@moneyprinciple says:June 29, 2012 at 11:41 AM
Our expnditure has increased but it has little to do with summer - more like escalating cost of living (starting with petrol and affecting all else). Your title made me smile though, remembering Porgy and Bess and '...summer tiiiime and the living is easy...'. People coming from the South always believe that summer is cheaper and survival easier.
- Lance@MoneyLife&More says:June 30, 2012 at 6:19 PM
Tracking your spending is key. I know I'm staying within my budget because I have a balance left in all of my budgeted accounts but most people don't keep their money the way I do. I'll have to write a post on that one day.
- Karen says:July 1, 2012 at 4:15 PM
I took a quick look at my budget summary over the past several months and have noticed that May and June have been quite spendy for me. There were lot of events in those months (birthdays,mother's day and father's day),which meant more spending. I ate out a lot more than I wanted to, but I had my cousin visitng from out of town and eating out was a lot easier to do than cooking for 8 people. Some months are better than others, so I do believe its seasonal. It's all good as long as I'm still tracking my spending and staying within budget.
