HOW WE SPENT $31,710 IN 2018
Last year, we put ourselves on a challenge to spend less than $40,000 and we did it! So we want to show you where our money went in 2018.
The total for 2018 on our personal life is $31,710.
This doesn’t include business expenses- which we spent $9,000 on- but we’ll go line by line. I'm sure you're going have questions when you read the below breakdown...
So, why we don’t have a housing payment?
For the first four months in the year we were living in our house in Bakersfield. We were renting out all the other rooms in the house which effectively paid for our entire mortgage and almost all of our utilities.
After we moved out of the house and into Clifford we obviously didn’t have any housing payments because we were living in the van. If you look at our month by month charts you'll see a lot of expenses that include Clifford expenses, maintenance items, we had to replace the transmission, etc. We didn't count any of those expenses nor the money that we put into build him. We excluded these because we recently sold him in November, so all of that money was recouped on the sale of the van.
Why was healthcare so expensive?
The big payment was health care which Alli had LASIK eye surgery which was around $4,000. That was our biggest expense for the year, but it was totally worth it, being able to see every day, highly recommend it.
Why do we have a loan payment?
We talk a lot about getting out of debt, but Matt actually still owes his mom for college. It’s from the bank of mom at 0% interest. When he graduated school they worked out a payment of $500 bucks a month. We're still paying that. Matt's mom likes income and Matt likes not paying interest, so $500 bucks a month works instead of paying it all off up front.
If you have a 0% interest loan we wouldn’t recommend you pay it off right away, either.
Basically any loan below 7% you have to wonder whether it’s worth your time investing that money or paying off your loan. It all depends on your own personal risk tolerance, some people just really like to be able to say they're debt-free and if that’s really important to you, go for it.
Our next line item is groceries, which was $4359 which is an average of a little less than $400 bucks a month, like $350-ish maybe.
Then gas for the car, utilities for the house, insurance.
What does insurance include?
Insurance does include health (we use Medi-Share), car, and umbrella insurance.
Next up is restaurants. I'm really proud of that one because it’s less than $200 a month. We would have months where it was really big. If you look back on July when we were visiting a lot of friends on the east coast, we spent like $400 that month. Then there were other months where we spent like $80 bucks or less. It fluctuates a lot, but overall for the year we ended up pretty well.
Travel, that was probably the majority of the beginning of the year when we were in Europe for a little bit. We were there the first couple weeks of January.
Other things that ended up in travel: Alli had a bachelorette party in Mexico that ended up in there, Matt had a bachelor party in Denver.
What Mobile Phone Plan We Use
We started off the year with our workplace plans (til April). When we got off our workplace plans, we went to Google FI. Unfortunately, we had a bad experience with Google FI when we got our computers hacked and they weren’t able to protect our phone numbers. Now we are with Verizon and we pay $60 a month for 3GB of data each and that works for us.
When we were full-time traveling in the van we’re using our phones for Internet, so we had Verizon unlimited plan and it was $170 bucks for both of us. That unlimited plan is where the bulk of that expense came from- 6 or 7 months of being on an unlimited plan.
Next up: electronics and software, we bought a drone for our YouTube channel!!
Matt also bought a computer right before we left work so he had a laptop for traveling.
Shopping. A lot of gifts that we bought for people’s weddings, things like that. Christmas gifts all ended up in there too. A few Walmart transactions for backpacking food ended up in there too.
The automotive category is mainly the last few months once we've settled down, we got a new (to us) car, we had to do some registration, stuff like that. Our car was given to us by a friend who owed us.
Most of the Clifford maintenance on the van all ended up under the Clifford category which ended up positive, so it's not included. Since we made $1400 off of the sale of Clifford, all of that got wiped out when you look at it on a 12-month basis.
I'm really proud of our alcohol and bars tab. Super low. When we started dating that was like, a $130 a week.
Entertainment, that’s just like movies or going places. Since we were traveling full-time we didn’t really pay for a lot of entertainment, we just went hiking when we wanted to or mountain biking. Almost all the stuff we did was free, so that was pretty sweet.
So total we spent $31,710 on us personally.
Business Expenses Explained
For the businesses we invested about $9,000 last year, and that’s for our business Primal Noms, we invested a lot of raw material. For this business Owen Your Future we’ve invested in software and some camera equipment.
Majority of the business investment was the last two months into Primal Noms to get raw materials to start manufacturing. Just getting set up with a commercial kitchen was $1000 worth of permitting to get our health license.
If you looked at any of the past expenses blog posts, we post all of the screenshots month by month so you can see how we do it.
For 2019 we’re hoping to keep the spending below $40,000 as we did last year.
Our housing situation might change a little bit, we’re not 100% sure what we’re going to be doing or where we’re gonna be living so we may have some more rents to pay, but no matter where we end up we’re going to try to do something similar to what we did in Bakersfield and house-hack our living situation so at least reduce those costs as much as possible.
We're pretty happy with how we did, we were definitely quite a bit under $40,000 which we expected it would be tough to actually hit.
We’d never spent under $40,000 ever before. The year before we spent around $60k.
Leave us a comment below if you have any spending goals for 2019, we'd love to hear them!