I just finalized my November budget today. In addition to the 10% that’s automatically put into my work pension plan, I’m saving an extra 11.3% of my take-home (net) pay. It’s a bit lower than last month but I overspent a bit in October and needed to adjust things accordingly. That being said, I’m still quite happy with that amount.
What am I putting all these savings into? My emergency fund. Slowly but surely, it’s growing back to the point of being able to cover 2 – 2.5 months of expenses for me. I know that the standard recommendation is 3-6 months of expenses but I’ve chose to have it set at a slightly lower amount. Why? Well, it’s a smaller and more achievable goal. I also know that if I lost my job, I would get some kind of part-time work immediately, which would allow that amount to stretch much further. If I have to stop working due to illness or injury, I can also apply for financial help through my work benefits or medical EI. Again, that would allow that amount to stretch much further that just two months. Those are the reasons why I’ve chosen to set my emergency fund at a lower amount. Once I’ve reached that goal, I’m going to aggressively start saving for the wedding. My goal was to have my emergency fund finished by the end of 2015 but I think I’ll likely still be working on it for January and February as well.
Now, how did I do in October? Overall, it was an ok month. I did stick to my budget in most things but I also had a few mistakes. I definitely overspent a few times and let my emotions get the best of me on more than one occasion. I’m definitely finding (again and again) that my spending mishaps happen when I’m not feeling good (sick, lonely, upset, etc.) and I think that buying something will fix that or make me feel better. I’m working on other strategies to comfort myself (i.e. reaching out to friends/family, exercising, etc.) but there were still a few small blunders in October. They weren’t huge blunders but they added up to me overspending by about $140.00 for the whole month of October. This is not a huge amount, and certainly not the most I’ve overspent, but I want to stay within my budget every month. I think that what’s really important here is that I’m learning more about myself and how my emotions are connected to my spending. Identifying these patterns is the first step to changing them.
That’s all for now lovelies. I’m off to
clean my apartment and get groceries do adulting. Ciao.