July Military Family's One Income Budget

A Military Family’s One Income Budget – July 2016

I can’t believe this is our LAST budget dealing with the British Pound!!!

We have promised ourselves we would continue to budget during our PCS (military move). Three years ago, when we moved to England we got off track and stopped budgeting for 3 months. Our goal is to do much better this time around.

July is a bit of a CRAZY budget month. We have final bills from utility companies as well as some of our PCS expenses beginning to pile up. Some PCS expenses we are cash flowing and some are being paid with our PCS budget.

Are you ready to see our DEBT FREE/Mid-PCS budget? So were we! But first check out this cutie! 🙂

Budget Baby 4 months

Military Family Budget Meeting

My husband and I have a budget meeting before the beginning of each month to hash out our budget. Even if he is deployed, half way across the world. We still have our budget meetings via a phone call or some type of technology. After four years of budget meetings, we can cover everything financially related and be in 100% agreement in about 10 minutes.

Trust me. It was NOT always this painless.

The Purpose of Sharing our Budget:

We share our budget with the hope to encourage and inspire our readers who are on their journeys to financial freedom. We share our budget with the hope that it opens up a financial conversation, to create an opportunity to learn from each other.

Background

If you are new to Budget Loving Military Wife, you may be wondering a little bit about our situation. We have been seriously focused on our finances, getting out of debt, and budgeting for four and half years!

My husband serves in the U.S. military and we have been stationed in England since 2013. We began our marriage with two good incomes, which was extremely helpful to pay off our consumer debt. However, our England move made us a single-income household. We have a four month old baby boy and we are now getting ready to move to Hawaii!

In June of this year we paid off our final debt, our mortgage (stateside home that is currently a rental property) and screamed WE ARE DEBT FREE!!!

Our financial focus while living in England has been to pay down our mortgage as quickly as possible and to take advantage of our once in a lifetime opportunity to travel Europe. We have successfully done BOTH! 🙂

july Budget

 

One Income Budget

Income

Husband’s Income – $6436.27

This is total take home pay for June. We budget and live on last month’s income. Our income is in US Dollars, but most of our expenses are in British Pounds. For simplicity sake, we budget everything in US Dollars (using current exchange rates).

Current Exchange Rate: 1 British Pound = 1.40 US Dollar 

***Last month with two currencies!!! YAY!!!
****As many of you know the British Pound crashed at the end of June. However, we had already bought our British Pounds and need to clear out our British bank account. 🙁 So this month we are using a higher exchange rate than the actual rate (actual rate: 1 British Pound = ~$1.32).

Living Expenses 

Rent – $0

We moved out of our British home mid-June and paid for our temporary lodging ($1284.80) in full with June’s budget. We will also be staying a couple weeks with family in route to Hawaii. So no rent this month. YAY!

Electricity/Gas- $343.00

OH MY!!! Supposedly we used more electricity than estimated and had the above bill upon move out of our British home. 🙁 Oh well, at least we had extra wiggle room in our budget this month.

Water- $53.26

We had a quarterly bill due in June for March-May service. This is our bill for about a month of service.

Grocery- $172

This may seem low, but this is only for a portion of the month so it’s actually quite high. We did not include grocery expenses while we are visiting family. We do plan on helping pay for groceries, but budgeted it in a different category.

Car Repair/Replacement- $0

We are currently renting a car so we don’t have to worry about car repair/maintenance. We had $1722.29 left in this fund and we applied it towards our PCS budget towards buying new to us cars in our next location.

Gasoline- $75

We are only in England for part of the month and we are living much closer to my husband’s work. So this category is much less than our typical $200.

Renter’s & Car Insurance- $50

We are covering our belongings in transit and we are required to cover insurance on the rental car.

Dental Insurance- $11.68

This covers my dental insurance. My husband’s is 100% covered by his employer.

Baby- $0

Majority of our baby expenses come out of our grocery fund (diapers) and miscellaneous fund (unexpected fees or medicine, etc.).

Total Living Expenses: $704.94  (11.0% of Total Budget)

 

“Luxury” Expenses

Phones- $112.00

We called to cancel our phones mid-June because our plan was just to use our cheap “pay as you go” phone. However, apparently in England they have up to 30 days to cancel your phone after your request. So, we are still paying for our phones. 🙁

Internet- $0

We paid our final internet bill in June. Get this, they charged us a ~$30 fee to shut off our services. How silly!

Miscellaneous– $56.00

We had $60 left over from June’s budget. We are rolling it over to have a total $116 for July. This fund picks up random $5-$20 expenses that we did not foresee or helps cover categories we go slightly over budget.

Blow Money- $40/$60

This covers all of our individual purchases. Clothes, Haircuts, Make up, Lunch with Friends, Snacks/Coffee, etc. We “allow” a maximum of $75 each per month, however we try to keep this expense as low as possible.

Restaurant- $144

We had $20 left over from last month which we will roll over to July’s budget for a total of $164. We are budgeting a lot more in this account because there are a few restaurants we want to eat at one more time before we leave England. We also know between moving and living in temporary lodging there is just less opportunities to cook so we eat out more.

Vacation Fund- $0

We are done vacationing while living in Europe. :( Our visit to family is budgeted with our PCS budget.

Computer- $347

Our only computer crashed last month. We were able to purchase a relatively cheap computer to get us by for the next few months.

Gifts- $99.29

We purchased our nieces and nephews small gifts to give them when we see them in a few weeks! 🙂

Entertainment- $58

This covers my husband’s going away “party” with his co-workers.

Visiting Family- $750

We are estimating $250/week to be spent while visiting family. We will help cover costs with groceries and “welcome home” parties. There are a few American restaurants we can’t wait to visit. We also have a couple of entertainment activities scheduled (going to the zoo and bowling with our nieces and nephews).

Clothing- $150

While packing our clothes my husband and I realized how desperate our clothes looked. We have allotted a small clothing budget to pick up a few items. However, once we get settled in Hawaii we will do some MAJOR wardrobe replacement!

Wedding- $40

My husband will be in the wedding party for his brother’s wedding this fall. While we are visiting them in a few weeks they plan to buy shirts for the groomsmen.

Total “Luxury” Expenses = $1856.29   (28.8% of Total Budget)

Work & Education Expenses

Husband’s Work- $0

Husband’s College- $0

My husband is taking a break from college courses until we are settled in Hawaii.

Total Work & Education Expenses: $0   (0%)

Investments – $722.46

We have selected to invest in Roth investments because our taxable income is currently very low. We would rather pay taxes now, rather than paying taxes when we are retired millionaires. 😉 We invest approximately 10% of our gross income.

Total Retirement Investments: $722.46   (11.2%)

Savings

PCS Fund- $3152.58  

After July we will have saved $10,832.58 in our PCS (military move) fund. Our goal was to save $9000. This is not including the deposit refunds and profits from selling our car. By the end of July we should have slightly MORE saved than our estimated “fully funded” PCS budget. YAY!!! 🙂

Total Savings: $3152.58 (49.0% of Total Budget)

 

Debt Payments- $0

WE ARE DEBT FREE!!!!

 

***Please remember I am only sharing our budget to learn from each other. It is no attempt to make anyone feel sorry for us or to brag in anyway. I would love to hear your tips or what you would do differently if you were in our shoes. I am all about making our budget better and more efficient. :)

What do You Think?

How was your June Budget Meeting?
Trying anything new with your budget this month?
What would you change about our budget?







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The Million Dollar Challenge June

The Million Dollar Challenge – June 2016

We are half way to completing The Million Dollar Challenge of 2016!!! All of you challengers are AMAZING and had an absolutely INCREDIBLE month!!!

If you would like to join the sixty courageous challengers who have taken on this challenge. Please Join HERE!

The Challengers

The majority of challengers are married and in their 20’s and 30’s. Most challengers started their financial journey within the past year and have a household income below $50,000 and a net worth below $50,000. If you are interested in learning more about the challengers, please check out “Meet the Challengers.”

June’s Getting to Know the Challengers Question:

What has been your greatest financial achievement so far in 2016?

I am soooo thrilled I asked this question!!!

All of your answers seriously gave me goosebumps and had me grinning from ear to ear.

I am so proud to be part of this challenge with you all, who continually inspire me! Keep up the AMAZING, although CHALLENGING work! The following answers are proof to just how hard you are working and how focused and determined you are to accomplish your financial goals. Thank you for sharing!

  • Paid off credit card debt!
  • Reduced emergency fund and paid down mortgage. Read Total Money Makeover by Dave Ramsey (very motivating).
  • Cut out unnecessary expenses.
  • Started a Roth IRA!!!
  • Set a realistic savings goal to pay for a future home in CASH!
  • My net worth has changed by over $14,000 so far this year!!! (some has been increase in home value, some in a stock market boost, but most has been hard-core saving and paying down debt).
  • Increased mortgage principal payment from $400 to $5oo and increased 401K contribution from 5% to 7%.
  • Saved $500+ to travel to Baltimore with my boyfriend and saving $2000 so far for a car down payment.
  • Paid off mortgage!!!
  • Traveling a TON and not going into debt thanks to budgeting!
  • Funding a PhD without any loans!
  • Moving with less than a month’s notice without incurring any debt!
  • Both of us working full time.
  • Just getting started. (Nichole: that’s the hardest part! Congrats! Can’t wait to hear what you accomplish by the end of the year. 🙂
  • Paying off over $30,000!!! 🙂
  • Paying down $13,718 of mortgage principal so far.
  • Paid off my student loans!!! Also saved enough to start living on last month’s income.
  • Saved $10,000!!!
  • Bought a boat with CASH and paying extra every month on our mortgage!
  • Sticking (for the most part) to my allocated weekly food budget.
  • The fact that I managed to save at least 300 Euros each month is pretty amazing!
  • Paid off $11,000!!! (I had NO idea that it was possible for me to do!)
  • Established a workable budget that has us debt free in 5 years, even with spouse’s job change!

June Update

Debt Paid Off

There were 23 challengers who reported financial progress this month, 16 of those who paid off debt. Those 16 people, paid off…$38,325.13!!! Well done all you debt slayers!!! Keep up the amazing work! That is an average of $2395/person! WOW!!!

In only six months, we have paid off an UNBELIEVABLE amount of debt MORE than a quarter MILLION DOLLARS!!! CONGRATS Challengers! Will we pay off half of a MILLION dollars by the end of the year? Would that not be just CRAZY?

Total Debt Paid in 2016: $267,390.25

 

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Savings

There were 19 challengers who reported saving towards an emergency fund, vacation fund, or some other large purchase. Those 19 people, saved… $55,214.02!!! WOW!!! We beat last month’s savings, which was our highest savings month for the year by MORE than $13,000!!! Congrats to all you Super Savers!

Total Savings in 2016: $178,875.41

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Investments

There were 17 challengers who reported investing towards retirement, children’s college education, or other investment accounts. Those 17 people, invested… $37,686.37! Just like our savings, last month was the most we had ever invested and we beat it by MORE than $9000!!! INCREDIBLE!!!

Total Investments in 2016: $120,128.41

If we invested our total investments in 2016 for 30 years at 8 percent returns, we would end up with just over $1.3 MILLION!!! That’s AMAZING! :)

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Total Progress for June: $131,225.52!!!

CONGRATS on an incredible June, Challengers!!! Each month I am blown away by how ~25 challengers can change their finances by SOOO much! Keep up the challenging but rewarding work!

image (8)

 

 

Total Progress in 2016: $566,374.08!!!

WOW!!! We blew right on by the HALF A MILLION DOLLAR mark! How mind boggling is that??? A small group of us who are determined to change our finances have done just that in epic proportion… by more than $500,000! Just think how we have changed our futures, our families futures, and future generations by doing something about our finances TODAY!

Congrats to all of you for your continued hard work and determination. I am so proud and thankful to be part of this AMAZING group of challengers. You all inspire me to push harder and achieve more. THANK YOU!!!

Facebook Group The $1000000 Challenge

Facebook

If you are a challenger or planning to become a challenger we would love for you to join our Facebook Community that is solely dedicated to The $1,000,000 Challenge. You will find inspiration and encouragement from your fellow challengers. Inspiring and informative articles. I also post “Questions of the Week” which if you answer, provides extra entries into the $100 Amazon Gift Card Giveaway!

2016 Million Dollar Challenge

The $1,000,000 Challenge of 2016

Are you inspired by the INCREDIBLE progress of these challengers? Are you ready to be the one who improves your finances by $10,000, $20,000 or do I dare say $50,000???

Are you ready to dramatically change your finances? If you are ready to join the challenge that will push you to PAY OFF MORE DEBT, SAVE MORE, and INVEST MORE than you EVER thought possible. I encourage you to make 2016 YOUR YEAR and Join The $1,000,000 Challenge TODAY! Plus this year, there is a $100 Amazon Gift Card up for grabs!










$100 Amazon Gift Card GIVEAWAY

  $100 Amazon Gift Card Giveaway










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June Mortgage 2016

Our Journey to Mortgage Freedom: June 2016

Oh my, what a CRAZY and busy month June has been! Just in the past week we have moved THREE times! I don’t recommend it!

Anyway, I have put off this post after mid-month because I knew we were going to make TWO mortgage payments this month… AND….

if you are part of The $1,000,000 Challenge you already know WE ARE DEBT FREE!!!

Yep, screaming it from the mountain tops… WE ARE DEBT FREE!!!

 

Do you want to see the break down of how we made it happen this month? Good! You are in the right place.

Looking Back at May

As of May, our mortgage principal was $4,629.14! Let’s take a look at how we made our PAY OFF THE MORTGAGE, 2016 Financial Goal a reality!!!

June 2016 Mortgage Freedom 

 

June’s Journey to Mortgage Freedom Payment

June 1st 2016 Payment:

Principal Reduction:

Normal Payment:      $628.52
Interest:                              $2.11
Blog:                               $178.49
Fuel:                                  $32.79

Extra from Budget:   $1318.78

Total Principal Payment: $2160.69!!!

Category Breakdown

Interest ($2.11): This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!

-Blog ($178.49): This is two months worth of blog income from advertisements in the sidebar and within blog posts. Expenses are not considered in this figure. Thank you for your continued support!

-Gasoline ($32.79): We budget $200/month for gasoline expenses. Last month we had a little extra left over and so we applied it to the mortgage!

Extra from Budget ($1318.78): We had a few less expenses last month and so this is ~$300 more than the previous month! You can take a look at our May Budget to get a better idea how we came up with this “extra” money.

New Mortgage Principal… $2,468.45!!!

During the last weekend of May we had our June Budget Meeting. We knew our expenses would be slightly less because of how our rent payment falls mid-month and that we would be moving out of our house leaving all those expensive bills behind.

Let me remind you that we pay our mortgage with the previous month’s income.

The June 1st payment was paid with May’s budget and income from May 1st and May 15th paychecks.

The following June 15th payment was paid with June’s budget and income from June 1st and June 15th. This is the reason we could make two large payments in a single month and claim DEBT FREEDOM!!!

June 15th 2016 Payment:

Principal Reduction:

Normal Payment:      $637.07
Car Repair Fund:       $498.69
Extra from Budget:   $1332.79

Total Principal Payment: $2468.45!!!

Category Breakdown

-Car Repair Fund ($498.69): We sold our British car the first week of June meaning we no longer required a car repair/maintenance fund. This fund now sits at $1167.86 which will be applied toward our PCS budget.

Extra from Budget ($1332.79): This is the “extra” we had left over in our June budget after all of our expenses and our monthly $1500 savings towards our PCS budget.

After July our PCS fund should be completely funded. Now that we do not have a mortgage we will be able to pad our PCS budget and hopefully get slightly nicer cars than anticipated. YAY!!!

New Mortgage Principal… $0!!!

WE ARE DEBT FREE!!!

It is taking some time to get accustomed to being debt free.

We’ve had this “attack debt” mentality for so long that it has become part of us and I think it will take some time to let it go. I am sure when we hash out our July budget this weekend our DEBT FREEDOM may become a little closer to feeling like reality when we realize how much “extra” we have in our budget.

Have we splurged or celebrated our debt freedom?

Honestly, we have been so busy with moving and getting ready to PCS we have not had a chance.

Our baby boy had his 4 month “birthday” the same week we became debt free and we splurged and bought him a ~$20 toy for his upcoming first international airplane ride.

What’s funny and maybe a little scary/sad… we went to several garage sales and a “like new” community sale with the plan to get him a used toy. Once we couldn’t find anything that was age appropriate. We wandered into the toy store and had a difficult time selecting a toy without feeling guilty about purchasing something unneeded. I suppose old habits die hard.

Our Debt Freedom Plans

  • Successfully complete our PCS to Hawaii and visit family in route all while staying within our allotted PCS budget.
  • Establish a workable Hawaii budget.
  • Dramatically boost retirement investing. We currently invest $722.46 each month and we would like to at the very least double it.
  • Splurge a little. There are many purchases we have put off because of our financial goal of becoming debt free. Nothing huge, but we will be purchasing a new bed, linens, computer, and clothes!
  • Save for our “Forever Home.” My husband should retire from the military in the next 7-9 years. Once he retires and we both have jobs in a location we LOVE. Then we will purchase or build our second home. The goal is 100% CASH!

 

New Mortgage Statistics

Daily Interest: ZERO!!!

After the bank tacked on $100 of “processing fees” I am SOOO HAPPY to be done with my 2nd to least favorite bank! We get rid of my ultimate least favorite bank (the one we have in England) in less than a month! YAY!

Number of Years Extra Payments have Knocked Off Mortgage: 25 Years!!!

We paid off our 30-year mortgage in exactly 5 YEARS!!! Our very first payment was July 01, 2011.

Our Journey to Mortgage Freedom Visual

Here is a breakdown of our  Month by Month Progress

Untitled design 

Looking Forward to July Budget:

Our July budget will be a bit CRAZY because we won’t have “regular” bills but will have some PCS expenses we are cash flowing. Expenses such as the entertainment/food expenses while visiting family in route to Hawaii and “going away” and “welcome home” events.

We will have a better idea after this weekend’s budget meeting but my best guess is we should be able to save an additional $2500-$3000 to our PCS fund, which will give it $1000-$1500 more than anticipated.

I hope to give you all an update to our PCS budget soon, but with our little one and trying to PCS I’ve come to find out extra time isn’t in abundance.

We are Leaving England DEBT FREE!!!

 

What do You Think?
Do you plan to pay off your mortgage early?
How should we celebrate our debt freedom?

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$1,000,000 Challenge May Progress

The Million Dollar Challenge – May 2016

We are nearing the half way point of The Million Dollar Challenge of 2016 and these challengers are AMAZING!!! We have an excellent chance of changing our finances by ONE MILLION DOLLARS!!! How crazy is that?

If you would like to join the sixty courageous challengers who have taken on this challenge. Please Join HERE!

The Challengers

The majority of challengers are married and in their 20’s and 30’s. Most challengers started their financial journey within the past year and have a household income below $50,000 and a net worth below $50,000. If you are interested in learning more about the challengers, please check out “Meet the Challengers.”

May’s Getting to Know the Challengers Question:

What category is your biggest “Budget Buster”?

image (3)

 

 

May Update

Debt Paid Off

There were 16 challengers who reported debt paid off this month. Those 16 people, paid off…$23,870.00!!! Well done all you debt slayers!!! Keep up the amazing work! That is an average of $1491/person! In only five months, we have paid off an UNBELIEVABLE amount of debt OVER a QUARTER MILLION DOLLARS!!! CONGRATS Challengers!

Total Debt Paid in 2016: $229,065.13

 

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Savings

There were 17 challengers who reported saving towards an emergency fund, vacation fund, or some other large purchase. Those 17 people, saved… $41,823.20!!! WOW!!! There were a couple challengers who saved an INCREDIBLE amount this month! This is nearly DOUBLE the MOST we have saved in a single month! Congrats to all you Super Savers!

Total Savings in 2016: $123,661.39

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Investments

There were 16 challengers who reported investing towards retirement, children’s college education, or other investment accounts. Those 16 people, invested… $28,549.27! This is the MOST we have invested in a single month since the challenge began. CONGRATS!!!

Total Investments in 2016: $82,422.04

If we invested our total investments in 2016 for 30 years at 8 percent returns, we would end up with just over $900,000!!! Considering this is only 5 months worth of investments, that’s AMAZING! :)

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Total Progress for May: $94,242.47!!!

CONGRATS on an incredible May, Challengers!!! Each month I am blown away by how ~25 challengers can change their finances by SOOO much! Keep up the challenging but rewarding work!

image (2)

 

 

Total Progress in 2016: $435,148.56!!!

WOW!!! Next month we will be half way into our challenge and we may just hit that HALF MILLION DOLLAR making us right on target to hit our $1,000,000 by the end of the year! The summer months are challenging, so dig deep, stay on track and strive to reach those financial goals!!!

Thank you to all of you inspirational challengers who are changing your finances one day, one dollar at a time.

Facebook Group The $1000000 Challenge

Facebook

If you are a challenger or planning to become a challenger we would love for you to join our Facebook Community that is solely dedicated to The $1,000,000 Challenge. You will find inspiration and encouragement from your fellow challengers. Inspiring and informative articles. I also post “Questions of the Week” which if you answer, provides extra entries into the $100 Amazon Gift Card Giveaway!

2016 Million Dollar Challenge

The $1,000,000 Challenge of 2016

Are you inspired by the INCREDIBLE progress of these challengers? Are you ready to be the one who improves your finances by $10,000, $20,000 or do I dare say $50,000???

Are you ready to dramatically change your finances? If you are ready to join the challenge that will push you to PAY OFF MORE DEBT, SAVE MORE, and INVEST MORE than you EVER thought possible. I encourage you to make 2016 YOUR YEAR and Join The $1,000,000 Challenge TODAY! Plus this year, there is a $100 Amazon Gift Card up for grabs!





$100 Amazon Gift Card GIVEAWAY

  $100 Amazon Gift Card Giveaway






You May Also Enjoy:

Emergency FundCalculate Your Debt Free DateHow Investing Small Amounts of Cash can Pay Of in RetirementHow to Spend Your Tax Refund Wisely