Dollar Diary: 29-year-old federal government worker shares a week of spending

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 Jo, who is 29, lives in central Sioux Falls and earns $45,000 working for the federal government.

First, the basics.

Age: 29

Gender: Female

Occupation: Federal government, public service

Do you get income from anything else? Side hustle? Passive income? No.

Neighborhood/living situation: Currently, my husband and I’s living situation is covered by his employer. Our long-term goal is to buy a few acres in rural South Dakota and build a home.

Do you own your car or have a payment? My husband and I have two vehicles, a 2008 Dodge pickup and a 1999 Ford pickup. We do not have a car payment. Our goal is to never have a car payment but rather purchase/own vehicles that fit within our financial means.

How about debt? Anything you’re obligated to pay each month? My husband and I have been debt-free since October 2019 thanks to Dave Ramsey’s 7 Baby Steps. Not including our home we previously owned from 2015 to 2018, we paid off approximately $97,000 in debt,  which included an ATV, credit cards, home appliances and student loans.

And now, the diary.

Here’s what a week of spending looks like:

Gas: Happy Monday! I am an overall organized individual, but one thing I do not always plan out is filling up the vehicle with gas for the week ahead. My husband and I usually fill our vehicle with gas a few times per week. That amount is approximately $150 per week.

Groceries: We like to order groceries online through Hy-Vee or Walmart. It is simpler with a child to order ahead rather than having to go into the store regularly. That amount is approximately $75 per week.

Child care: We have one child in day care and pay our provider weekly. That amount is approximately $130.

Online shopping: This amount varies a lot it seems on a week-to-week basis. This category includes baby food, diapers and clothing for our household of three. That amount is approximately $200 per week.

Restaurants: We have a standing date, my husband and I, to eat out for lunch or dinner before the workweek begins. For the two of us with an appetizer, two meals and drinks, the amount is approximately $55 with tip. We eat out two times per week.

What I learned: By completing the Dollar Diary, I learned when I discuss finances it is never just me. It is always my husband and I. It does not matter how little the amount, we are consistently discussing our finances/spending. After reviewing this spending summary, the one category we can improve upon is our online shopping spending.

What’s next for Jo?

What big purchase are you saving up for?

Our next big purchase we are saving for is a down payment to buy a few acres and build a house. We are looking forward to putting down our roots and continuing to grow our family. We will then work through the remainder of Dave Ramsey’s 7 Baby Steps.

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

My husband and I have made it through baby step three of Dave Ramsey’s 7 Baby Steps, which is to save three to six months of expenses in an emergency fund. Once we accomplish our goal of building a home, we will start back up where we left at baby step four of the 7 Baby Steps, which is to invest 15 percent of our household income in retirement.

The expert opinion

Of course, it’s just one week, but Jo’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 great to hear that Jo and her husband are working through Dave Ramsey’s 7 Baby Steps and are currently debt-free. Paying down debt and building up savings is key to reaching your financial goals. Being on such a strong financial footing in their late 20s is a big deal. Maintaining their diligence and motivation as they enter this next stage will be key. Great job!

Another important financial habit to start while you’re young is to gradually increase your retirement contributions to 15 percent to 20 percent of your gross annual income. It sounds like Jo has figured this into her budget, but if you haven’t, we recommend starting sooner rather than later. You’d be amazed at how much the money you invest in your 20s can grow by the time you need it in your 60s.

If you saw some similarities between Jo’s financial habits and your own, be sure to check out our podcast, “Common Cents on the Prairie.” We share all kinds of financial tips and tricks to make your money work for you. Listen to our “8 Steps to Managing Your Money Better” episode below, or stream any of our 15 episodes wherever you get your podcasts! And, if you find yourself looking for a little extra help with your retirement planning or investing, we’d love to help.