Checking In With My Savings Plan: April Edition

In April, I received $3,688.66 in freelance payments. Here’s what I put in my sub-savings accounts:

Taxes got 21 percent, or $754.52.

Debt got 20 percent, or $737.73.

Savings got 14 percent, or $511.32.

I started April thinking I would put my usual 20 percent towards taxes and 20 percent towards debt—as well as 15 percent, instead of 10 percent, towards savings in order to make up for the month I was short on income and took $1,000 out of my savings account—and ended the month putting 22 percent of my income towards taxes and 10 percent towards savings. (That’s why the month-average percentages fell out at 21 and 14 percent.)

About That Whole “Put 20 Percent of My Income Towards Taxes” Thing

This left $1,685.09 for my checking account, which meant it was yet another month where I wrote over $5,500 in freelance work but only got $3,688 in paychecks—and another month where I had to dip into my savings to cover my basic expenses. (I took out $1,500, leaving my current savings balance at $802.82.)

However, I am scheduled to get roughly $10,000 in paychecks this month, and I keep thinking about what I’ll do with the money.

$2,200 will go to taxes.

$2,000 will go to debt. (I am so excited to pay off $2,000 of debt in a single month.)

$1,000 will go to savings.

Of the $5,000 I have left over, another $1,500 will go back into savings to make up for what I took out this month. That will bring my current savings balance to $3,302.82 and leave me with $3,500 in my checking account.

$1,800 of that will go towards my rent+bills+food costs, which will leave me approximately $1,700. I’ll probably spend some of that on other stuff, maybe finally get that $48.10 bookshelf I thought I’d buy a month ago, and of course I’ve already spent $37.81 on emergency shorts (the original purchase price was $48.97 but they were out of one of the items I ordered, so I got a small refund), but I’ll still have enough money to start a checking account buffer, so the next time I get a low-paycheck month I won’t have to dip into my savings.

(I’m really tempted to put that buffer money directly into my savings anyway, so I won’t inadvertently spend it all, and that may be what I end up doing.)

Part of this feels like counting my chickens before they’re hatched, and I’ll let you know if I don’t earn my anticipated $10K. The other part feels like finally inching towards financial security: enough money to replenish my savings, pay a huge chunk towards my debt, and set up a buffer for the future.

I still don’t have that three-month emergency fund, and I’m still not debt-free, but if this month goes well I’ll be that much closer.

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