Minimizing expenses
Short term tactics:
List of current expenses and how to reduce or eliminate them:
Rent: $927.5/month
-This expense is 50% of my current income
For years I lived in a studio apartment for ~$730/month. I got bored and moved to an expensive apartment with an old friend. At the end of the month my lease ends and I'll be moving in with my girlfriend to a new apartment. We considered cheap 1brms but most were in bad shape and in student slums. We decided on a 2brm apartment in a quiet lake-side neighborhood. The property is self-managed and allows us to bike commute to work. Rent is 1340/month so I will be paying 36% of my income.
Groceries: ~$250/month
-Since Spring I have been bulk shopping at Costco. I eat well and plenty. I need about 4000 calories a day to keep my weightlifting, triathlon training, and yoga going.
Carbs: oatmeal, rice, lentils, rolled noodles, bagels
Protein/Fats: chicken, lean beef, tuna, eggs, greek yogurt, mixed nuts, cheese, peanut butter, olive oil, hummus
Fruits: apples, clementines, bananas, frozen strawberries, frozen blueberries
Veggies: Mixed salads, mixed frozen stiry fry veggies, onions, and for home-made smoothies: bulk kale/spinach, beets, carrots
I've considered eliminating or reducing meat. The only other way I see reducing this expense is limiting non-food purchases. About $50 of this monthly purchase goes to clothes, kitchenware, or anything else I find while getting groceries.
Restaurants/Alcohol: ~100/month
-This bill use to be very high but has lowered since dating my girlfriend. I no longer get take-out or binge drink at bars. Most of this current bill goes to weekend trips or lunch/beer with a friend. Do not expect to change for now.
Health insurance: $67.25/month
-My parents actually pay 50% of this bill (135/month). When I turned 26 my parents offered to help pay for a plan that allows me to receive care at my childhood hospital, one of the best in the nation. For routine concerns I use my University. If something life-threatening happened I could get care at my childhood hospital. If I changed to the standard access insurance I could reduce this payment to 30/month but would be limited to the University's hospital system. Is this extra spending worth the margin of treatment? I don't know, but I'm considering changing to the cheaper plan.
Therapy: $60/month - co-payment for cognitive behavioral therapy
-I see my therapist four times a month. Possibly reduce sessions to twice a month soon.
Utilities: avg 90/2 = $45/month (split w/ roommate)
-New apartment averages $70/month (electric/gas company makes data public), reducing this expense to 35/month.
Internet: 74/2 = $37/month (split w/ roommate)
-I'm working hard to convince my girlfriend that we do not need internet. Rent DVDs from the library for entertainment. Go to the coffee shop down the street for work-related internet uses. Read a book. Save $900 a year!
Gym: $39/month
-I bought this membership because it includes unlimited yoga at a very competitive price compared to other local yoga studios. But it still pains me as my University's gym is free. I really enjoy yoga and like other amenities of the gym (the sauna especially) so will continue my membership. Someday I want to build my own home gym and sauna.
Other subscriptions (Spotify, HBO, Costco, iCloud, NYT): $34/month
-I pay for my family's Spotify subscription for Christmas gifts. HBO can go. Costco stays. iCloud stays. NYT can go. This drops to 22/month.
Total expenses: ~$1560/month
-Expected new total expenses: ~$1200/month.
I plan to save the extra $360/month. First to build an emergency fund to cover three months of living expenses ($3600). Then probably a high yields saving account for a house down payment.
Long term strategy:
No grand strategy here, just a few thoughts floating around:
-Continue living without a car.
-I'm fortunate my girlfriend shares similar financial interests, i.e. keeping expenses low and savings high.
-Do not fear new hobbies, but be mindful of potential expenses.
-Avoid lifestyle creep.