Our February 2018 Budget

I will be detailing our monthly budgets (putting all our cards on the table so you can follow along, even when we screw up) every single month.  The spreadsheets I will post with show our estimates from the beginning of the month compared to what we actually ended up spending.  This month the “entertainment” budget was $1,000 because (thanks to our budgeting and living within our means) we cash flowed a weekend getaway for Valentine’s Day.  The first one we’ve had in years.  Along with the budget spreadsheet I will detail what we did with the excess cash we had this month, and explain why we did what we did.Screen Shot 2018-02-28 at 6.56.38 PM.pngScreen Shot 2018-02-28 at 9.34.22 PM

The M1 Finance account is an account that is 100% in Berkshire Hathaway B shares.  There’s no money manager on earth that I believe in more than Warren Buffett.  Wanting to invest alongside him, but limited by how expensive individual shares are of his company, I’ve chosen to dollar cost average into the shares via M1.  The additional mortgage principal is about the same amount we add each month to get the total payment to $1050.  The Ally savings account is what I’d consider a “slush” sort of fund which is automatically debited into from our main checking account in $55 increments every Monday Wednesday and Friday.  Partitioning this money away without having to think about it allows us to spend some money on ourselves guilt-free as a budget item without feeling the sting of it all in one month.  The taxable investing was to bring the 2 accounts into balance.  I had $1000 I wanted to allocate toward taxable investments and I keep my wealthfront and Vanguard accounts even to keep myself well diversified into low cost index funds.  The wealthfront Roth IRA automatically debits $100/week in order to evenly max out the contribution limit throughout the entire year to take advantage of dollar cost averaging into the index funds.  After those goals were met, and automatic debits taken out, the remaining funds are thrown toward maxing out the Vanguard IRA so that I have cash available in that account should I see an investment I really like.

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