Monthly Money Review: February 2024

I know February is a short month but good god it went fast! The start of another month means (yes, we are one month closer to Christmas and also) it’s time for a monthly money review.

Just a quick recap: I share these updates where I publish my financial numbers for the whole world wide web to see as one part of an accountability process to keep me working towards my money goals for 2024 (the other part of my accountability process being my monthly finance meetings with my brother… which I really should write a post about, they’re so good)

Where January was something of a disgraceful month, February was delightful; a vast improvement in every way. Some of those ways will be obvious from the below charts (although the picture isn’t quite as good as it looks, I will explain more later), some of the ways in which February was better though won’t be obvious from the charts, yet, because it relates to a less tangible financial metric: my money mindset and how I was thinking and feeling throughout the month.

I started February in a bit of a funk – a semi long-term relationship had just ended and I was feeling lost and alone. The end of the relationship, whilst for the best, brought up a lot of unresolved feelings from my marriage breakdown as well as a sense of hopelessness and despondency that I don’t remember ever having felt before.

It wasn’t just the loss of the relationship I was mourning, it was the loss of the future I had imagined. And I will admit in my imagination that future had felt somewhat easier than my present because, let’s be honest, living on 2 salaries is easier than 1 (often – of course there are always exceptions to every rule)

I started the month mourning the weekends away and holidays I could no longer afford to take,  I was mourning the dinners out and Christmases we would no longer share, I was mourning the camper van we would no longer buy, the retirement to Raglan we would no longer enjoy together, the financial as well as the emotional future I had imagined. I was feeling a lot like I had climbed all the ladders on the board and was about to cross the finish line, when I stepped on a slippery snake that put me right back at the beginning, on square one, again.

But of course that wasn’t true, and I know a man is never the answer to any financial problem! I reminded myself of all the ways my life is better without a man – the time, freedom and energy I have available to direct elsewhere when there isn’t a man taking those things from me. And I set about creating the financial future we had talked and dreamed of for myself 😊 I looked for solutions instead of problems, I found new ways to make money and worked harder than ever on my side hustle. So, whilst the numbers may look good, the best thing about February was the difference in how I felt at the start of it to how I feel now at the end of it.

Enough fluff, let’s dive into the numbers, starting with the gap….

The Gap

A little refresher of what The Gap is: it is simply the difference between what you earn and what you spend – in a business we would call it the profit. It is one of the most important indicators of financial health because you can earn a million dollars a month and still be living payday to payday if you spend $1,000,001!

You may remember January’s gap was non existent (it was actually negative) so this picture is a VAST improvement:

A positive gap!!! Yay. And not just positive, a massive gap of $3,087! So how did I turn my finances around in just one month?? Oh how I wish that was the story I had to tell. Sadly it’s not. Yes my income for the month was $8,480 compared to $4,785 in January, but the simple truth of the matter is that I get paid fortnightly, and it just so happened there were 3 paydays in February, despite it being a short month (this happens twice a year and the next time it is due to happen is July). Because of this extra payday my PAYE income for the month was $7,177 but that does still leave $1,302 of income unaccounted for.

And this is where my new mindset around money and creating the future I want kicks in. I made $300 with my business, that’s through affiliate income on my old wedding blog. I made just over $100 bookkeeping for a friend, I sold some things I no longer want or need on Facebook marketplace and I also dipped a toe in renting my spare room out on Air BnB. None of these things on their own were life changing, but together they were an additional $1,302 which does cover the new tyre I need to buy next month and the ceramics class I started in February.

What’s more important is that it is further evidence that I am someone who can make money when I need or want to. A thought I have been practicing a lot and need to continue practicing with my mortgage and living costs increasing by $700 a month later this year.

Expenses Breakdown

My expenses for the month were $5,393 – $373 higher than January but $390 less than I had budgeted; and where did I spend that $5,393?

As is the case for most kiwis, my housing cost (in my case my mortgage) was my biggest expense at $1,350. It feels like a lot when it is a quarter of my income but I know that renting a house the size of mine would cost more like double that a month! And had I bought my house in 2021 instead of 2019 I would be looking at mortgage repayments closer to $3,000 a month, so I am lucky.

Home Expenses, which covers rates, contents insurance, house insurance, internet and power, was my next biggest expense at $760.

Tax is one that if you have any kind of side hustle or other form of income you need to allow for. February was residual income tax month for 2023 and it was $680 plus I have a payment plan to clear the balance.  

Groceries was only $500 for the month when I had budgeted over $600. Not because the cost of food has come down (unfortunately) but because I am being cleverer with my spending – buying things on special (if you follow me on Instagram you will often see me share and celebrate my savings for the week when they are particularly good), batch cooking meals that last a couple of days and eating cheap meals like porridge or omelette once or twice a week.

Bodie was again NOT an area I saved! February was another expensive money almost $300 on top of an expensive January ($507 which included two trips to the kennels, a visit to the groomers and the vets for a grass seed, as well as his usual insurance) And that doesn’t include treats as I pay for them in my groceries! No doubt about it, pets are EXPENSIVE!! So, if you can’t afford to pay $400 a month please don’t get one. I am seeing more and more dogs listed on Trade Me looking for loving new homes and it breaks my heart. They won’t understand when the people they love leave them with someone else. I know it’s often a decision made as a last resort, as heartbreaking for the owners as it is for the pet, I just wish as much time and thought had gone into getting the dog in the first place. Anyway, moving on…

Despite being single February was a big month for Gifts at $325. It is my nature and I didn’t get my money monkey in control as I started to receive this new money, so this is definitely something I need to work on.

I also spent more than I budgeted on eating out in February! Which again, considering I am single was unexpected. This was a mix of Waitangi day, when I caught up with my old boss and mentor (and drank enough gin to give me the confidence to do my first Instagram video!) and Art Deco which happens here in Napier every February and was a fabulous excuse to head out for lunch with a friend. Of all the areas I could blow my budget, eating out is the one I mind the least – especially when it involves spending time with friends (old and new)

I also spent $250 on myself, which was a ceramics class I treated myself to for Valentines Day ♥

Apart from eating out, Bodie and gifts my spending in February was in line with budget, which I was very happy with given the additional income I brought in. I was even under budget by $500 in Clothes because I didn’t treat myself as I had planned. Instead I chose to buy some additional Nvidia shares and put the rest into savings accounts for Bodie, a holiday and my emergency fund.

In March I am expecting my expenses to be pretty much in line with my income, and I have planned for another $300 of other income in that, so I have some work to do.

Investments

February was a good month for my investments too. I hit the $150k milestone in my Kiwisaver and smashed the $5k milestone in my Sharesies – driven by the continuing rise of Nvidia… which to be honest just makes me nervous. I brace for impact every time I log into the app, just waiting for the day its value has halved (or worse) which is why wise investors advise staying away from individual stocks. One day I will learn the lesson, almost certainly the hard way.

Investments Breakdown

Just in case you’re interested here is exactly what that $5,520 in Sharesies is made up of …

I invest $100 the day after every payday and I get paid fortnightly, so in February I invested $200 (that last payday investment will fall in March) plus I treated myself to another $120 of shares for Valentines Day 😊 Of my investments 80% continues to go to the US 500 ETF and the remaining 20% to Nvidia, although for Valentines Day I treated myself to additional Nvidia shares (or part of a share as they are now valued at over $180USD!) .

How is March looking?

As always, once I have reviewed the prior month I look ahead to the coming month in light of what I now know. Not necessarily changing my budget (personally I am of the ‘a budget is a budget’ mindset, but you do you) but changing my spending habits if I know something is coming up that I didn’t budget for.

For example, I know that I need to replace one of my front tyres and I budgeted for 1 tyre but I think you usually replace 2 when you do this, so there might be some additional cost there. I also think I undercooked my March Gifts budget as it is Mother’s Day and 2 of my closest friend’s birthdays. I am also going to sign up for a follow-on ceramics class I have enjoyed this one so much.

Apart from groceries I am limited to where I can cut $ from my budget (as it is already pretty tight) so my focus will need to be on continuing to find ways to make additional income in March. It’s important I remember tax though – anything I sell on marketplace might be tax free, as it’s just clearing out things I no longer want or use, but everything else is a taxable activity so I will need to remember to put 30% aside for the IRD.

Well I am going to sign off for another month but feel free to leave feedback – is this helpful? Would you like to see anything else included (or excluded) for March?  

Amy

XO$