August 2017 Money Diary: Questions You Might Have About Our Budget

September 2017 Money Diary.png

1. How does GoodBudget work? 

Goodbudget uses an envelope system, where you set a budget for each envelope and subtract from it during the month. At the start of a new month, the envelopes are filled up again. 

Here’s what our September 2017 dashboard looks like so far. Our eating out budget is lower than normal because September is a donation month: 

September 2017 Dashboard - Envelopes

September 2017 Dashboard - Envelopes

2. Does the app automatically track our expenses based on our bank info? 

The purpose of a personal finance app isn’t to make spending easier and more mindless.  So no, we don’t use an app that automates our spending. Saving should be automated; spending should be manual. It takes 2-3 months to get into the habit of logging every purchase we make. Now we do it without thinking about it. 

3. Why is everything REcorded in round dollar Amounts? 

We round every purchase up to the nearest dollar. 

4. Is our fuck-off fund included in our RTW travel fund?

Nope. When we return from our travels, we’d like to retain the option of telling people to fuck off.

5. Our monthly savings is greater than our allocation to our travel fund. What happens to the remainder?

Tax-deductible retirement accounts (401k, IRAs etc).

6. What’s the breakdown of “Rent and Bills”? 

The Origami Life - August 2017 Spending / Budgeting

Here’s the monthly breakdown: 

  • Rent ($1,395) - Studio apartment in Westside LA

  • Electric Bill ($15) - Other utilities are included in rent

  • Internet ($65)

  • Mobile ($80) 

  • Gas ($20) - For Jennie’s car. Her office is a 10 minute drive away, so one tank of gas lasts her a month. 

  • Car Insurance ($45) - Jennie only. 

7. What do we categorize as “Education and Investments”?

  • Education expenses include exam/course fees, Ivan’s books, and Jennie’s art supplies.
  • Investments include RTW trip gear, electronics and other miscellaneous fees. 

8. What do we categorize as “Life Happens”? 

Family, mainly. Plus, unexpected healthcare fees and co-pays.  

9. What do we categorize as “Miscellaneous” expenses?  

Coffee, donuts, tacos and ice cream.