Dollar Diary: Inside 40-year-old project manager’s 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 Alex,  a 40-year-old project manager in Sioux Falls whose home helps drive some of his spending and saving.

Age: 40

Gender: Male

Occupation: Project manager

Approximate salary: $70,000

Neighborhood/living situation: Own a house; live with spouse.

Do you own your car or have a payment: Yes, car payment.

How about debt? Anything you’re obligated to pay each month?

I have a low-interest personal loan that I am paying $500 per month for. I usually can pay my credit cards in full each month.

And now, the diary.

Here’s what a week of spending looks like:

This was my spending for the week. Fair warning: This wasn’t a typical week since I didn’t need groceries and did some traveling. Being midmonth, there were fewer bills taken from my bank accounts, and in this time frame I had no credit card payments that were due.

Monday: After every vacation I go on, I create a printed photo book for my trip. This time, I purchased a second book to give as a gift to my friends who came with me on a trip this summer. Total for two books: $63.68.

We had Friendsgiving over the weekend. I was still working on leftovers and did not need groceries this week.

Tuesday-Thursday: I work from home most days and didn’t need to leave the house this week, so my expenditures were minimal: $0.

Friday: I took the day off to go to a wedding. I was able to use reward nights to pay for the hotel stay, so I didn’t have to pay for the stay itself; however, since the hotel is in downtown Minneapolis and parking was not included: $20 per night times two nights equals $40. Gas to Minneapolis cost $29.15.

I skipped lunch and splurged for dinner: $54.33 for some dang-good Italian fare for two.

Saturday: Breakfast at the hotel was included, and food was provided at the reception: $0 for food.

I gave $100 for a wedding gift. I don’t know what is standard these days, but I should probably adjust for inflation.

Parking for the reception cost an additional $5.35.

My monthly car payment was withdrawn from my bank account: $465.

Sunday: Again, breakfast at the hotel was included, and I robbed the pantry when I got home: $0 for food.

I got gas on the way back home: $32.19.

What I learned: I tend to spend less when I am accountable.

What’s next for Alex?

What big purchase are you saving up for? 

A midcentury knock-off Eames lounge chair.

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

Broadly, I hope to be saving for a few home-renovation projects. My house is at the age where major items need to be replaced.

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

I have been setting aside money in a 401(k).

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

It’s great that Alex and his spouse own their home and that he can afford to pay off his credit card bills each month. Eliminating high-interest debt is key to being able to save up for something big like home renovations. I would like to see Alex work on paying off that personal loan before putting money back into his house, however. Once that debt is behind him, Alex can focus on some home renovations, which may even add some value to his house. Plus, those upgrades will make working from home more enjoyable for him!

Something else I would like to see Alex doing is taking a critical look at his savings rate. At his age, I’d like to see Alex saving approximately 20 percent of his gross income annually to put toward retirement savings. That amount should be spread across pre-tax and Roth accounts — his 401(k) may have both a pre-tax and a Roth option — and an after-tax investment account if he has some extra. Having money in each of those buckets will be really powerful in retirement.

If you saw similarities between Alex’s financial habits and your own, be sure to check out our podcast, “Common Cents on the Prairie.”™ In the episode “So, You Want To Be A Millionaire?” we break down how you can save $1 million by the time you’re 65. Listen to the episode below, or stream any of our episodes wherever you get your podcasts! And if you find yourself looking for a little extra help with your retirement planning or investing, reach out.

Would you like to participate in our next Dollar Diary? Email [email protected]m.