Jun 2, 20202 min read

May 2020 Expenses - Blew my budget and don't care

Where am I?

May 1 - 31: Placencia, Belize

Estimated Expenses & Goals I expected to spend $2,500 in May and blew that goal right into outer space. Instead of beating myself up, I analyze my high spending categories and make adjustments for the next month.

Another aspect I have to keep in mind is reflecting on my annual budget. Was 30K an appropriate goal to set for my cost of living in 2020? In the Digital Nomad world 30K is a luxurious annual budget, where in the retired Expat world it is pretty standard. I chose this number as a budget goal based on my research for the places I wanted to live and explore, and an annual savings rate I really wanted to reach. But I do give pause to my goal, and wonder if an annual budget closer to 35K or 40K would be more appropriate for me and how I choose to live. Budgeting and living abroad are both new experiences for me and I'm enjoying the learning process every day.

Here's the nitty-gritty for May:

As you can see, my lodging and transport were the two highest categories. This month, lodging includes rent and cleaning services. It's also important to know my rent includes all utilities as well, so I still don't need those as a separate line item. Transport this month includes my golf cart rental, water taxi and car taxi rides for when I needed to handle my visa extension in another town.

I really had a hay-day with food in general. I can't believe I spent nearly $1,000 on groceries, eating out and buying wine and spirits for the house. It's no surprise that alcohol is an expensive habit to enjoy.

The category called Gifts includes cards and presents to my loved ones back home and most is donations. This is a category I look to increase in the future, especially when I reach my early retirement stage.

Savings Rate

This month I was able to save about 72% of my income. Even by blowing my budget, I had a good month with work and I'm still very pleased. Keep in mind, my goal is to save 75% monthly, so I was not that far off.

What have I learned?

I think I may want to increase my annual budget. As Belize continues to slowly reopen, I want to explore and not feel guilty if I go over $2,500 in a month on expenses. At the same time, I want to be mindful of not blowing money on stupid stuff. If I make a purchase it should have great intention and value to the quality of my life.
I need to get back into eating more healthy foods. I've really enjoyed a lot of bacon, pasta, pizza, and fried foods.
I am grateful for the friends I'm finally making here in Placencia. It was really weird to be here for 2 months with everything shut down, and now I have some wonderful people to meet up with for lunch, dinner, or an excursion. It makes me look forward to the upcoming months!

June Goals

For June, I am setting a goal of $2,500 for expenses and I expect a 75% savings rate.