Income to Expense chart

Over the past year, I've kept track of my income, my spending, and how much I'm sending to savings and to my 403(b) account. I'm not much of a numbers gal, so I love anything that indicates statistics in a graphic format.

In the beginning of my frugal journey in November of 2007, I was spending more than 100% of my income (using credit cards, of course!). Slowly, my spending began to inch downwards, while my income inched upwards. Although I missed a few months this past fall, it's been gratifying to see my progress graphically. I recreated the chart I use below, as well as giving you the exact information in a spreadsheet below that.

I particularly love watching the percentage of my income that is going toward spending (which started at 106%!). In the beginning, the red line (expenses) was higher than the blue line (income). As the red line (expenses) has decreased, the yellow and green lines (savings and investment) increase.



And, here are the exact numbers used in the chart above:

Note that May 2008 was pretty amazing on the income and savings fronts, because that's the month I received my tax refund. Hopefully this year will bring the same tax 'gift'! I'm starting a brand new '2009' chart, since this has been such a satisfying project for me. . . .

Rich by 30. . . . .

Last week, while perusing Wise Bread, I came across a review for a book entitled: Rich by 30. I left a comment thanking the poster, Lynn Truong, for her review. Amazingly, Ms. Truong emailed me and offered to send me her copy of the book, with the caveat that I donate the book to my local library when I was finished. I happily accepted, and the book arrived on Saturday!

Although I had a friend visiting this weekend and was therefore busy, I was able to go through the book at lightning speed. It's truly basic, and much of the information presented will be familiar for anyone with an interest in personal finance. I commented to my friend that it would be an amazing gift for a teenager just starting his or her first job. How I wish I had had the wisdom to start saving (even just a little bit!) at the age of 16, when I got my first job!

Thanks, Lynn, for the book! I enjoyed reading it, and will pass it along to the Multnomah County Library system this week, so that others in my area can benefit from it as well.

Note to self: don't check mutual fund balances daily.

In the past two months, I've checked my 403b account balance (through TIAA-CREF)dozens and dozens of times. I watched the balance inch painfully upward, only to plummet the next day when the latest oil prices or inflation indexes were announced.

Each time I logged into my account, I warned myself: "It doesn't matter; you won't be retiring anytime during the next 20 years, so whether it's up or down just doesn't matter". That, unfortunately, doesn't make it any less painful to watch my contributions (and the interest earned over the past 8 years or so) diminish before my very eyes.

The Money Blue Book has a great post about this issue, reminding us that if we're really in it for the long term (I am! I am!) then don't worry about stock prices on a daily (or, in my case, minute-by-minute) basis. Sure, follow the general business news, but don't bother with stock tickers at the bottom of your computer screen or television (unless, of course, you're into individual stock purchases and are looking for good deals---I'm a mutual fund gal myself).

I'm going to try to keep my habit of checking online investment balances at once a week from now on, if that. Maybe even once a month if I can possibly stand it, just to save my sanity. FYI: Millionaire Mommy Next Door has a great post about how she handles the recent market rollercoaster. . . . .