In this June 2022 budget, I share our family’s real budget so that you can see how we plan and follow our journey toward reaching our financial goals.
But before we jump into the numbers, I’ll give my standard introduction to our family’s situation. My husband and I are an international couple living in Korea. I’m a US citizen with an online tutoring business is in the US, so I earn in US dollars, but my husband works here in Korea. We also have a son who will be turning 2 next month. Two! I can’t believe it.
If you’ve been following along, then you know that our family has been in financial limbo for a while now. My husband is currently waiting for a career change to finalize, although we still aren’t sure when that will happen. His new job may come with a car, which would be so great for our family.
But with the uncertainty about when that will actually happen, our budget has to be flexible. As always, I’m including some car expenses here, which usually ends up being a buffer in our budget and allows us to throw extra money at our goals at the end of the month.
We are projecting June to be a higher income month it’s the end of Q2. Since I use the Profit First accounting system for my tutoring business, that means that I get to pay myself a small bonus this month!
We’re also expecting some changes in our childcare budget. One of our babysitters is moving to Australia, and the other will be doing the same fairly soon afterward. (Australia is a popular work holiday destination for South Koreans, apparently!) We’ll do our best to find a replacement as soon as possible, but our budget might need to be adjusted for future months.
Business has been oddly slow during May, and I’m hoping that it will pick up again for June. But traditionally, June has also been hit or miss. In times like this, I’m grateful that I use Profit First to even things out so that I can take a consistent salary regardless of the seasonality in my business.
But at the same time, I would really like to see my numbers go up.
My goal is to reach $6500 in revenue, which is a bit lower than my goals have been in previous months. It’s still very ambitious, given what May has looked like. I’m hoping I can reach it.
Because of some changing priorities in our family budget (more on that below), I decided to revisit my Profit First allocation percentages this month. I’ll be putting more toward Owner’s Compensation than before so that I can give myself another small raise starting in Q3. I’ll also be holding off on contributing to Professional Development for a while. I have a decent stash in that account to hold me over for a while, especially since I have decided to cut down on my spending there to free up more money for my salary.
Profit First Categories:
- Projected Revenue: $6500
- 75% to Owner’s Comp: $4875
- 17% to Taxes: $1105
- 6% to Expenses: $390
- 2% to Profit: $130
Our individual incomes are blocked out for privacy reasons below, as I usually do. We’ll receive the typical 250,000 won (about $204 at the current exchange rate) from the Korean government for our son. I also anticipate earning about $25 in interest from our high-yield savings accounts.
It will be great if we can also find extra income through surveys, selling things, or other random opportunities. In fact, my ambitious goal is to try to find an extra $5 every day on average. These kinds of extra opportunities are a great chance to get a little more progress toward our goals.
Major Financial Goals
With the extra money we have from my bonus this month, we should be able to make more progress toward our financial goals than normal. But we’re also devoting a much larger chunk of money than usual to our sinking funds this month, so unfortunately our progress towards our major goals is less than it would have otherwise been. Still, we should be able to contribute over $1000 to our biggest goal – a deposit on our next home – which I am happy about.
- Retirement savings: $750 into my Roth IRA for 2022
- Emergency fund: Still not planning to actively contribute to this beyond what we accumulate in interest.
- Vacations/flights: $100 (Hopefully we’ll be able to use some of this money soon for a little mini-vacation in a nearby city.)
- New apartment deposit: $1040 (plus anything extra we’re able to scrape together). This is definitely our highest priority right now, and $1040 will get us to $5000 in our apartment sinking fund.
Our goal is to get as close as we can to $50,000 by the end of the year so that we can move into an apartment in a more foreigner-friendly neighborhood in Busan. We have some money we can draw on from other places, and we’ll be able to use the refundable deposit we have on our current apartment as well. We still won’t be able to get all the way there unless something amazing happens, but we’ll do our best to get as close as possible.
I’ve been really impressed by our ability to stick to our budget for normal expenses, especially given inflation. The exchange rate between US dollars and Korean won helps out a little, but it’s more been about being careful about spending. Hopefully we can keep that up in June.
I decided to present our normal expenses this month in both Korean won and US dollars, just to clarify exactly how I conceptualize our budget. Since we live in Korea, most of our expenses are in Korean won. But since most of our income is in US dollars, I budget for it in US dollars using the exchange rate I received when I last transferred money from the US to Korea.
Since I’ll be transferring money soon, our actual June budget will need to be adjusted mid-month to account for the exchange rate. Anything extra we have leftover (or any shortfalls) will be dealt with in our apartment deposit fund. Since the US dollar has been strong relative to the Korean won recently, I suspect we’ll be able to contribute more there than this current budget suggests. Meaning that the US dollar equivalent of all of these normal expenses will actually lower a bit.
Some notable points:
- Groceries & Eating Out/Delivery: Still trying to stick to the same amounts as before. It’ll take being very conscious about eating up the food we already have. We are also grateful to have received a gift card to use locally for food for our toddler. I didn’t add it to our budget since we are sharing the gift card with my mother-in-law, but that should also help offset some of our grocery budget.
- Babysitter: It’s hard to know what to expect here since we’re yet again going to need to find a new babysitter. The amount here is a rough estimation based on our current babysitting arrangement.
- Fun/Misc/Coffee: I’m hoping we’ll be able to use more of this money than usual this month. We all need a bit of a break, and it’ll be great to be able to do some fun things together as a family. (Usually those fun things also involve a coffeeshop or a trip through the Starbucks drive-thru.)
We use sinking funds for expenses that are more discretionary and that vary from month to month.
Notable items from our June 2022 budget:
- Personal spending: I receive less than my husband and my toddler because I simply need less. I’ve never been a big spender. If my husband receives his new job, we’ll increase his personal spending even more to reflect the cultural realities of working in a Korean company (i.e., mandatory work dinners, cultural obligations to buy coffee for people, etc.)
- Gifts/holidays: We started out 2022 putting $30 per month into this sinking fund, then increased it to $50. But I’ve since realized that a good chunk of the birthdays and holidays that our family celebrates come in the first half of the year. So now, with one month until my son’s second birthday, our sinking fund wasn’t quite where I wanted it to be. So we’ll do $100 this month and next, and then we’ll bring it back down to $50 per month the rest of the year.
- Household repairs: We have enough in here to cover things for a while, so we’re holding off on contributing to this fund in June. We rent, so any large problems are the landlord’s responsibility.
- Healthcare expenses: We usually contribute between $50-70 to this fund each month, but we’re working hard to beef this fund up. My mother-in-law will be undergoing surgery soon, and according to Korean culture, my husband and sister-in-law will be responsible for paying for the hospital stay.
I’m looking forward to seeing how far we can get toward our goals this month. It’s always exciting to receive a bonus from my business, even if that bonus isn’t terribly large.
I’m proud of the amount of progress we’ve been able to make toward our goals so far in 2022, and I hope that a consistent focus on our finances will help us continue that momentum through June.
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