Well, hello there! Welcome to the April 2016 Budget Review. I believe this is the first month that I have taken on this formatting so there will be a long explanation section and then we will jump right in. In future months, I will just link back to this or to the Progress section.
Age of Money
The very first section is going to be our current Age of Money. What, in the bloody heck is that?! Okay, well as you know I use YNAB, You Need a Budget, for our budgeting software. They have this thing called Age of Money and;
it is the average age of your last ten cash transactions
Okay, vague. Basically, it is looking at your last ten transactions and comparing the expense to how old the money in your account is. So, for example, you got paid on the first of month, and prior had a zero balance. On 2nd of month you paid your cable bill, so your money was 1 day old. Let us say you have some money left over on the 15th of month, and you pay another bill. It comes out of the initial deposits money, so now that money is 15 days old. The more money you have, the more likely it is to be older.
Honestly, I don’t know why this number matters. But I am tracking it.
Our Current Age of Money: 23 Days
This is a part of YNAB that I more so understand, and feel serves a far greater purpose. The Buffer. The buffer is important to us because it allows us to live off last months income. To get this figure I have to use the YNAB Chrome Toolkit Extension. If you have a 30 day buffer you are totally and completely living off last months income. We are still recovering and getting all caught up on a few things. We also aren’t budgeting for all categories in our savings because all extra is currently going to getting the fluff nuggets to Hawaii.
Our Current Buffer: 10 days
All this means is we have room for improvement and I am more than okay with that.
Do I really have to explain this one? Well, I kind of do. For Aprils Budget we used the month of March’s income. Even thought the above buffer says we aren’t buffered…we actually are. So, not 100% how accurate that number is but shush. Just kind of rolling with it.
This income is going to be much lower than any other month. In March we were living on base in Texas, so we did not receive a housing allowance per my husbands benefits. We now receive the housing allowance in his pay as we now live off post. We also receive what is called a cost of living adjustment that varies from month to month based on the cost of living index for Hawaii. I also did not receive a paycheck in March since we moved in February.
This will be a total of all out going expenses for the month. I do not have a number for April because I may or may not have wiped our YNAB clean. I tend to favor fresh starts, for now apparent reasons. I am sorry. Next month there will be a figure here.
This is simply our income minus our expenses for the month. Obviously, there won’t be a number here for this month. But in the future hopefully it will be positive, at worse it breaks even.
Typically, if there is a net income it will be allocated to sinking funds already. If it was leftover money from our checking account categories I roll it into the next month if we are short or I throw it at our debt snowball.
Now for the fun numbers. Our current debt, that is in repayment with a minimum payment totals to (January 1st 2016) $39,934.41. As of today that debt is now $37,131.94. We do have two other sets of loans that are on IBR at $0. We aren’t too worried about those right this moment, which I will discuss later this summer.
We pay based on the avalanche method, meaning highest interest loans to lowest. The Parent Plus Loans we pay for Mr. Wanderlusts parents sit at 9% interest. Our Perkins Loans sit at 5% interest.
For the Month of April we paid:
Total towards Debt: $499.88
Interest Paid: $184.39
We are not aggressive on our loans at this moment. We slowed down to storm mode for out move for Mr. Wanderlusts job and for me to fly home next month to deal with some family stuff that needs to be taken care of/get our cats home.
Once I return from Ohio at the start of July we will begin our intense repayment of debt.
Well, I think that about covers everything. If there is anything that I want to add I will, at a later date. Just expand upon this as we go! I will eventually begin tracking our net worth, but I have to commit to getting our debts into YNAB to be able to efficiently and comfortably begin doing that.