Saving Cents: A week on a $42,000 salary
Saving Cents, in partnership with South State Bank, is a series of anonymous peeks into locals’ personal finance habits, spending, and savings goals over the course of one week.
Saving Cents is volunteer-based and accepts submissions from all demographics, including age and income level. If you want to document your spending for a week and have us publish it, visit Saving Cents on our website.
This week’s Saving Cents features a 25-year-old nonprofit marketing director who lives in Forest Acres and is making $42,000/year. Here’s how she spends + saves.
BASICS
Age: 25
Where you live: Forest Acres
Where you work: downtown Columbia
Industry: Nonprofit
Job Title: Director of Marketing
INCOME
Annual salary: $42,000
Savings: $500
RECURRING MONTHLY EXPENSES
Rent: $950
Utilities: $98
Phone: $0
Subscription services: $21.68 (Netflix & Spotify. I don’t pay for cable so Netflix is a must and I love music too much to not have Spotify!)
Car insurance: $120
Transportation: $75 on avg. per month on gas
Finance payments:
$100 credit card monthly payment (those things are DANGEROUS)
$125 parents loan (parents paid for my furniture upfront and I am paying them back monthly).
Gym membership: $30
GOALS
Three financial goals you currently have:
- Pay off credit card
- Build my savings
- Eat out less
Anything else we need to know?
Each month I have a spreadsheet of all my expenses broken down into the categories of rent, utilities, netflix, spotify, groceries, fun money, gym, parent loan, rent, gas, groceries. I budget for each category and use the spreadsheet to subtract how much I spend on each category. I do find it really useful and can predict how much money I have “left over” each month.
Also, I get paid monthly so I have to REALLLLLLY budget!
WEEK OF SPENDING
Monday
1:30 p.m. Lunch for my boss’ birthday (my lunch + half of boss’ lunch) – $22.12
8:45 p.m. Bought my book for my bookclub on my Kindle because my favorite library (@RichlandLibrary) didn’t have it – $3.99
Tuesday
10:15 a.m. Specialist doctors appt. because I am slowly falling apart – $50
11:45 a.m. Donation to a nonprofit during #MidlandsGives – $20.98
6:20 p.m. Beer at Yappy Hour (dogs + beer = happiness) – $4.50
Wednesday
2:15 p.m. Property tax #adulting – $345
8:15 p.m. Mexican food with friends – $11.50
Thursday
3:15 p.m. Purchased a tent for $27.80 (but split cost with a friend) – $13.90
4:55 p.m. Laundry detergent ($4.56) and makeup ($12.11) – $16.66 total
Friday
Didn’t spend a dime! GO ME! – $0
Saturday
11:40 a.m. Tequila to celebrate Cinco De Mayo – $10.79
11:50 a.m. Trader Joe’s trip for margarita ingredients – $12.75
Sunday
10:20 a.m. Groceries for the week (Publix) – $20.97
10:30 a.m. Groceries for the week (Trader Joe’s) – $51.70
Total weekly spend, categorized
Food + Drink: $134.33
Entertainment: $17.89
Home + Health: $399.56
Clothing + Beauty: $12.11
Transportation: $0
Other: $20.98
Total spend = $584.87
REFLECTION
What did you learn?
Extra expenses that you don’t see coming really suck (doctors apt., property tax, etc.) but it really did help to write everything down and see where my money is going.
How much could you have saved by cutting on expense per day?
I could probably save a lot but I really try to not spend money on things I don’t need. I have money pulled aside each month for “fun things” so that I can buy a beer at Yappy Hour or buy a new a piece of clothing. I just know that LOTS of my money goes to eating out and I am really trying to cut back on that!
Three savings strategies you’ll use for future budgeting:
- Really think, “do I need this or do I want this that badly?”
- Instead of eating out with friends, can we do something that is free? Go on a walk, just get a drink as opposed to an entire meal.
- Keep track of my money via a spreadsheet!
Figure out your finances and set achievable goals with South State Bank’s free, approachable Advice Center, or stop by to see a local banker.
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