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Jasmine's Journey to Financial Security: One Month Ahead

Jun 16, 2024

Jasmine's Journey to Financial Security: One Month Ahead

Background

  • Jasmine, also known as "Budget Treasures," shares her financial journey on her channel.
  • 10 years ago, she was laid off unexpectedly from a job she loved, leading to financial instability and living paycheck to paycheck.
  • This experience motivated her to avoid future financial insecurity by becoming one month ahead in her bills.

Objectives

  • Primary Goal: To be one month ahead in paying bills.
  • Secondary Goals: To maintain emergency funds, rainy day funds, and budget effectively.

Definitions

  • One Month Ahead: Being able to pay the next month's bills with the previous month's income.
    • Jasmine's Approach: Covering utility bills, living expenses (food, gas), fixed bills (insurance, taxes), and subscriptions.
  • Emergency Fund: Savings for 3 to 12 months of living expenses for loss of income.
  • Rainy Day Fund: Savings for unexpected short-term expenses (e.g., car repairs, minor emergencies).

Breakdown of One Month Ahead Expenses

  • Utility Bills: Estimate on the high side to cover variability.
    • Gas: $165
    • Electric: $220
    • Water: $50
    • Solar: $150
    • Trash: $110 (quarterly, not monthly)
  • Living Expenses:
    • Food: $300
    • Household: $30
    • Toiletries: $30
    • Gas for Car: $240
  • Fixed Bills:
    • Taxes: $50
    • Car Insurance: $175
    • Court Fees: $75
  • Other Bills:
    • Internet/Cable: $125
    • ADT Security: $70
    • Sirius XM: $10
    • Life Insurance: $15
    • Amazon Prime: $20
    • Fitness Membership: $35
    • Hulu & Disney: $5
    • Apple: $100
    • Peacock: $20 (yearly cost prorated)

Calculation

  • Total Monthly Amount (excluding mortgage and HOA): $1,495
  • Adjustments: Rounded to $1,500 for safe margin.
  • Mortgage and HOA:
    • HOA: $266
    • Mortgage: Unspecified (to be handled separately)

Steps in the Process

  1. Determine One Month Ahead Amount:
  • Calculate all bills and necessary expenses.
    • Identify additional savings for unknown variables.
  1. Where to Save:
  • Decide the storage method (cash vs. bank account).
    • Optional: Use a separate savings/checking account or cash envelopes.
  1. Execution:
  • Make deposits on the first of each month.
    • Pay the bills from the deposited amount as they become due.
    • Continuously fund the next month's bills with the current income.

Considerations and Issues

  • Bank Fees: Charges for low-balance accounts can complicate budgeting.
  • Cash vs. Digital Savings: Ease of access and personal discipline in handling money.
  • Real-Time Adjustments: Regularly reviewing and adjusting plans based on actual results.
  • Side Hustles: Additional income streams to expedite reaching financial goals.

Conclusion

  • Jasmine aims to ensure financial security through disciplined savings and careful planning.
  • The journey will be documented in multiple episodes for continuous learning and adjustment.
  • Emphasis on building liquid cash reserves to avoid future reliance on credit for emergencies.

Call to Action

  • Encourages viewers to follow her journey and share their experiences.
  • Subscribe to the channel for updates and more financial tips.

Future Episodes

  • Updates on savings progress and deposit practices.
  • Refinements and adjustments based on real experience.
  • Demonstration of practical budgeting tools and methods.

Important Links

  • Reference video on calculating bills for one month ahead.

Stay tuned and be financially secure!

Full transcript