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Net Loss and the Fabulous-ness of the Freedom Account

January 21st, 2014 at 04:30 pm

Happy new year. I'm budget tweaking. Trying to stay excited about it, but excitement wanes.

I was able to add up all my recorded expenses for 2013 to see what I can do better.

The good news is I kept pretty good track for 2013. The bad news is it wasn't what I was hoping.

Net income for 2013: 43,874.05 (after all deductions including retirement savings)

Regular Household expenses: 24,230.27
Savings from net income: 2,160
Cash withdrawn/spent: 7,130
Irregular Household expenses: 11,874.64 (!)
Total expenses for 2013: 45,394.91

Net loss/profit: -$1,520.86 (boo!)

After I re-figured the numbers about 5 times and consoled myself with a bag of chips and some butter pecan ice cream, I realized I have a lot of additional savings and retirement savings that come out of my gross pay as automatic deductions so overall I'm still to the positive.

I also realized that it was the Freedom Account that absorbed that loss of net pay vs net expenses. So hooray for the Freedom Account!! That's the account I use to cover my irregular (non-monthly) expenses. (from author Mary Hunt, Debt-Proof Living)

The irregular expenses kicked my butt!
House repair: 1,342.33
Car Insurance: 2,331.63
Car repair/maintenance: 3,663.21
Medical/dental: 4,537.47 (oh, WHY didn't I become a dentist???)
But the regular deposits to the Freedom Account, plus the cushion I had in the account from the previous year, saved the day! I know it works, but... it really works!

I spent 3,575 on groceries which was from the cash withdrawn. I felt I did good in that area, but will still tweak it if I can. A few other things to look at as well.

Will work on staying motivated. I'm managing my fatigue and job burnout the best I can. My spouse is still not any help in the finance area, but he cooks dinner everyday. Even trade?????

At least a girl can check in with her saving advice friends to try to stay the course. Happy saving in 2014!

2 Responses to “Net Loss and the Fabulous-ness of the Freedom Account”

  1. snafu Says:

    Good on you for terrific records and managing your money so well. I've no wish to encourage CC spending but since you mentioned a desire to tweak grocery spending, I hope it's ok to mention we use a particular CC for groceries and gas just because it give a 3% rebate for all spending at grocery stores and gas for the car. I'm very careful to pay the sum owed one business day before due date.

    IIs you 'Freedom Acct' the holding spot for monthly set aside for car insurance or any irregular expenses we all face? I never thought of giving it a name. Brilliant. idea. The economy is getting stronger, I hope DH will renew his effort to find employment.

  2. Looking Forward Says:

    I know what you mean.. I should be a dentist too!! Smile

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