Budget review

We have now completed two months of our semi-retirement and it is time once again to see how we are doing on sticking to the budget.

Not well.

The bottom line is that we have exceeded our budget by almost $6,000 – almost 38% more than we planned to spend. The largest component is in the “D” (Diesel and Rig) category, due to the well-documented problems we have had with the rig, plus the slightly higher-than-expected diesel costs, lower-than-expected gas mileage and greater-than-expected distances traveled. Other significant overages were in “H” (Health Care) due to higher-than-expected COBRA costs and unplanned dental expenses, “M” (Miscellaneous) due to clothes and debt service costs, “X” (Extras) due mostly to visiting Las Vegas and “E” (Entertainment) due largely to our splurge on the first-class train tickets to the Grand Canyon.

But the big surprise was “F” (Food) where we exceeded our budget by more than 100%. I think we spent more on food while traveling than we ever did in Medford. I will have to adjust this budget item for next quarter as it is obvious that this one was just not estimated well.

And maybe we are eating too much or too well.

Here is the breakdown of overages for the first two months:

• D – Diesel and Rig …………………………. $2,100
• F – Food ……………………………………….. $1,400
• H – Health Care ……………………………..    $950
• M – Miscellaneous ………………………….    $550
• X – Extras ……………………………………..    $370
• E – Entertainment …………………………     $330
• C – Campground ……………………………     $220

The good news in this list is that campground fees, entertainment and, most importantly, rig expenses, should be substantially reduced once we stop traveling.  The health care expenses should also be low for the next six month while I return to my job with benefits.  But food?  Gotta eat.

The bottom line is that we haven’t done very well at sticking to the budget.  I am going to have to take a close look at the budget again before we can say with certainty that it is feasible to continue this lifestyle.