Dollar Diary: 34-year-old HR executive shares spending on six-figure salary

Dollar Diary is an inside look at the spending – and saving – habits of your fellow 605 residents.

It’s sponsored by The First National Bank in Sioux Falls, which is ready to help you no matter what your financial goals. If you’d like to keep a Dollar Diary for a week, email us at [email protected].

In today’s edition, we meet Amanda, who is 34, an HR executive with a side hustle on Instagram – whose spending also tends to be influenced a bit by social media.

Age: 34

Gender: Female

Occupation: HR executive

Approximate salary: $130,000

Do you get income from anything else? Side hustle? Passive income? Yes, Instagram partnerships. Anywhere from $50 to $300 a month.

Neighborhood: I own a home on the south side of Sioux Falls and live with my husband and two children. Our mortgage is $1,900 a month. Utilities and HOA average about $425 a month.

Do you own your car or have a payment? Lease. $380 a month.

How about debt? Anything you’re obligated to pay each month? Day care and nanny expenses are around $1,800 a month. I pay $950. My husband covers the other half.

Streaming services: $120 per month.

Gym memberships: $250 per month.

Cellphone: $200 a month. I pay half.

Fitness and meditation apps: $40 a month.

Clothing rental service: $210.

Housekeeper: $156 per month.

Insurance, college fund and retirement funding: $600.

Massage membership: $67.

Nail spa membership: $70.

Audible: $13.

And now, the diary.

Here’s what a week of spending looks like:

Monday: As I was getting ready this morning, I realized I was running low on foundation and skin care. Macy’s “shop online and pickup in store” to the rescue! $160 in Clinique and Lancome. After a busy day at work, I picked up the kids and took them to Skyzone, $48.

Tuesday: I stopped at the gas station on my way to work and grabbed some waters, $6.23. I have intermittent back pain from an old athletic injury. Work has been exceptionally busy, so I have not seen my physical therapist in a few months. My pain came back today with a vengeance, so I texted my physical therapist for an after-hours appointment, $256.

Wednesday: None. My day: Work and swimming lessons with my kids.

Thursday: I can’t find my lip gloss. So I make a quick run to Sephora at lunch and pick up a mascara as well, $52. My son is getting really into organizing things by color. I want to encourage his behavior, so I bought him some fun organizing items at Marshalls, $220. Did you know you can rent designer jewelry now as well?! Neither did I! Instagram ads to the rescue. Switch membership started! $80. We are running low on groceries. Weekly Hy-Vee Aisles order, $240.

Friday: For dinner, I treat my kids to B&G, $31, and grab some smoothies and salad from Pomegranate Market, $40. Weekly gas fill-up, $49. I see on Facebook a friend of a friend was diagnosed with cancer, $250 to the GoFundMe page.

Saturday: We decided to take a last minute trip to Okoboji. We often take last-minute trips. Gas , plus food, plus hotel, $920 between Saturday and Sunday.

Sunday: Driving back from Okoboji, Instagram ads were right there to tell me what I need. New yoga clothes, $190, and Goji berries, $25.

What I learned: I am easily influenced by Instagram.

What’s next for Amanda

What big purchase are you saving up for?

Travel. I am going to Europe with a friend this fall, and my family is planning a trip to South America in the winter. This will be my kids’ first time out of North America.

How would you describe your broader financial goals? Do you feel like you’re on track?

Travel and experiences today have the same level of importance to me as future planning. I know I should put more in retirement and definitely increase my emergency fund, but you can’t buy time. I am OK spending money on survives that give me more time with my family and make me more productive at work.

And, finally, retirement. What’s your approach to planning? Do you think it’s working for you?

Do what my financial advisor recommends – well, try to. I probably do half of what she tells me.

The expert opinion

Of course, it’s just one week, but Amanda’s Dollar Diary gave First National Bank’s chief wealth management officer, Adam Cox, a good look at her budget and financial goals. Here’s his take:

It’s really impressive that Amanda has built such a solid career with great income at such a young age. That’s something that’s hard to achieve, and she should be proud of herself.

Personal finance – just like life – is all about finding a good balance. Working with a good financial planner can certainly help make that happen. Amanda has stated that she emphasizes travel and experiences on the same level as future planning, which is totally fine, assuming her budget reflects those as equal priorities. If she intends to spend a certain amount of money each year on travel and experiences, she should be saving at least the same amount for her future, so she can carry her same lifestyle into retirement when she’ll have even more time to experience the world than she does today.

Obviously, Amanda has a comfortable income. But no matter your income, we typically recommend putting at least 15 percent of your gross annual income in some kind of retirement account. Given her annual salary, I’d like to see Amanda saving at least $19,500 per year, or $1,625 each month. And that’s just retirement savings – amounts contributed towards insurance and college savings should be over and above that amount. If that feels like a huge leap to make immediately, Amanda could increase her savings a bit more gradually over the next couple years until she gets to the point where she’s saving at least that amount. As an added benefit, working off a savings budget allows you to not worry as much about the small stuff when you know the big stuff – in this case, retirement – is taken care of.

No matter what stage of life or income level you’re at, you can always benefit from working with a financial advisor, so it’s good to hear that Amanda is working with someone. If you’d like to work with us, send us a note through our website. Otherwise, you can find all kinds of helpful tips and information on our podcast, “Common Cents on the Prairie™.” You can listen using the player below or wherever you stream your podcasts.