Friday, January 29, 2010
2009 Auto Expense
My manhood got the better of me. I spent $3500 on a 1999 Ford Ranger last year. My dad gave me $800 towards the truck to have 1/3 ownership. But overall our 4th largest category in spending was in the automobile category right after mortgage, giving, and food.
We spent a little bit over $4k in auto expenses.
$1807 on Gas and Fuel = $150/month
$1000 on Service and Parts = $83/month
$932 on Auto Insurance = $78/month
$500 on other expenses like DMV, parking tickets, towing, etc. = $42/month
We are in the process of giving our 1991 Honda Civic away. Which means we are going to reduce our auto insurance to about $640/year or about $53/month, saving about $300/year.
The other expenses will drop significantly. This was a leak in our finances and I intend to do a better job dealing with things. SO savings hopefully about: $400
Service and parts, we'll budget in another $1000 just in case for emergency repairs, new tires, etc. So spending $83/month.
As for the Gas and Fuel, $150/month means 1 fill up per week based on our gas tank and current price of $2.75/gallon. We can't guarantee the price of gasoline, but we can consume less by staying at home more, finding activities closer to home, hosting things at our house.
So, our savings could conceivably be about $700 this year or about $60/month or FUTURE VALUE in 30 years @ 10% return = $130K.
What can a budget do for you?