Reality hit me like a ton of bricks as my 13 year old car crapped out in the middle of rush hour traffic earlier this week, so I made a budget to determine how much I can afford to spend on a new car.
It’s amazing how those little things add up. I tried to include everything in my budget, down to even small items like hair cuts. Breaking it down into categories of housing expenses, transportation expenses, living expenses, entertainment expenses, savings, and college tuition, entertainment is by far the lowest portion. It is also the most controllable item, so logically started there to trim.
In total, I estimated $300/month for entertainment, of which half goes to bars/clubs. That’s roughly $35 per weekend. (The other half collectively includes concerts, sports games, movies, golfing, video games, as well as saving for a vacation) While the $35/weekend doesn’t sound that extraordinary, doesn’t $150/month for alcohol sound a bit high? I don’t drink excessively but I do go out a lot, so estimated high. Some weekends I stay in, and sometimes I blow through $70 in a night magically (a round of shots is pricey around here). Does that sound too high?
I don’t really want to have to alter my lifestyle for the next three years (where I go out any weekend and don’t exactly count my pennies at the bar) just so I can buy a car, but after reviewing my budget, there were very few other items I could cut. Sure, I budgeted $100 for dining out, but that’s like three decent meals, or a couple dates, along with my weekly burrito from Chipotle, which is a must. I’m not a broke college student anymore, but almost feel like I’m budgeting like one right now.
Maybe I’m being too optimistic by spending freely on alcohol/restaurants while buying a new car, going to grad school, and trying to save for a bigger condo/house in the future. However, I think I would go insane if I went an entire summer without a few Cubs games, which undoubtedly includes deliciously overpriced beer.
I’m looking for something in the ballpark of a Honda Civic; I don’t think that’s asking too much. A Camry is a little pricey for me. I want a car I can spiff up the inside (actually, I just want leather seats, power windows, and automatic transmission, 3 key things I’ve never had) without going over like 18k. I don’t think that’s too extravagant of a demand.
Any thoughts on where else to trim the fat? What I consider my “fixed expenses” (housing, transportation [including a car payment], and cell phone) account for exactly 2/3 of my take-home pay; is that too high? Or is the only answer to be a homebody and cut down on the baseball games, concerts, and drinking? Another option is to forego saving and assume that when the MBA degree is completed (~2.5 to 3 years) I will have a significant pay increase, along with a cost decrease (no tuition payments).
It’s amazing how those little things add up. I tried to include everything in my budget, down to even small items like hair cuts. Breaking it down into categories of housing expenses, transportation expenses, living expenses, entertainment expenses, savings, and college tuition, entertainment is by far the lowest portion. It is also the most controllable item, so logically started there to trim.
In total, I estimated $300/month for entertainment, of which half goes to bars/clubs. That’s roughly $35 per weekend. (The other half collectively includes concerts, sports games, movies, golfing, video games, as well as saving for a vacation) While the $35/weekend doesn’t sound that extraordinary, doesn’t $150/month for alcohol sound a bit high? I don’t drink excessively but I do go out a lot, so estimated high. Some weekends I stay in, and sometimes I blow through $70 in a night magically (a round of shots is pricey around here). Does that sound too high?
I don’t really want to have to alter my lifestyle for the next three years (where I go out any weekend and don’t exactly count my pennies at the bar) just so I can buy a car, but after reviewing my budget, there were very few other items I could cut. Sure, I budgeted $100 for dining out, but that’s like three decent meals, or a couple dates, along with my weekly burrito from Chipotle, which is a must. I’m not a broke college student anymore, but almost feel like I’m budgeting like one right now.
Maybe I’m being too optimistic by spending freely on alcohol/restaurants while buying a new car, going to grad school, and trying to save for a bigger condo/house in the future. However, I think I would go insane if I went an entire summer without a few Cubs games, which undoubtedly includes deliciously overpriced beer.
I’m looking for something in the ballpark of a Honda Civic; I don’t think that’s asking too much. A Camry is a little pricey for me. I want a car I can spiff up the inside (actually, I just want leather seats, power windows, and automatic transmission, 3 key things I’ve never had) without going over like 18k. I don’t think that’s too extravagant of a demand.
Any thoughts on where else to trim the fat? What I consider my “fixed expenses” (housing, transportation [including a car payment], and cell phone) account for exactly 2/3 of my take-home pay; is that too high? Or is the only answer to be a homebody and cut down on the baseball games, concerts, and drinking? Another option is to forego saving and assume that when the MBA degree is completed (~2.5 to 3 years) I will have a significant pay increase, along with a cost decrease (no tuition payments).