March 2020 Beers & Budgeting | Coping During Quarantine

TL;DR

Justine and Kyle’s March 2020 Beers & Budgeting review shows how lockdown changed their spending and prompted a more transparent look at money withheld before reaching their bank account. They spent $863 on groceries and toiletries after raising that budget to $700, while allocating $2,000 from Kyle’s paycheck toward his employer retirement plan. Read on for their specific budgeting decisions, paycheck contributions, and quarantine tradeoffs.

Transcript

okay welcome to beers and budgeting lockdown edition we shouldn't laugh hey guys welcome back to another episode of beers and budgeting I'm Justine and this is my husband Kyle okay every single month we are going over our budget taking a look at our income and our expenses and then making decisions moving forward but not without a beer that's all a... Read More

Key Insights

• ❓ Budget adjustments due to lockdown and economic uncertainties.
• ❓ Strategic allocation of income towards savings, retirement, and down payment.
• 🧑‍🏭 Community support initiatives and charitable acts during crisis.
• 💱 Lifestyle changes and creative activities to maintain happiness during lockdown.
• 🌸 Reflection on investment losses and adjustments to financial strategies.
• 🚨 Importance of maintaining essential expenses, emergency funds, and financial stability.
• 🥹 Consideration for others in need during crisis, emphasizing gratitude and empathy.

Questions & Answers

Q: How did lockdown affect Justine and Kyle’s March 2020 budget?

Lockdown contributed to higher grocery and toiletry spending because they could not visit restaurants, beaches, or parks or take day trips. Even after increasing that budget to $700, they ultimately spent $863.

Q: What is Beers & Budgeting?

Beers & Budgeting is a monthly budget review hosted by Justine and her husband, Kyle. They examine their income and expenses, make decisions for the months ahead, and share a beer during the discussion.

Q: What beer did Justine and Kyle drink during the lockdown edition?

They shared a Boulevard whiskey barrel stout from Kansas City, described as a barrel-aged imperial stout. The bottle contained 11.8% alcohol, so they split it.

Q: Why did they add pre-tax paycheck contributions to their budget review?

They wanted to show expenses and savings deducted from Kyle’s paycheck before the remaining money reached their bank account. These included the health savings account, insurance, and retirement contributions, giving viewers a more transparent picture of their finances.

Q: How did Justine and Kyle use their health savings account?

They used the health savings account to set aside money that could cover medical expenses. They said their annual contribution limit was $7,700 and that unused funds could continue accumulating for medical needs in retirement.

Q: What did they notice about their insurance costs?

Reviewing paycheck deductions made insurance costs more visible, including dental insurance at $75 per month. Because they generally received two cleanings a year and Kyle had one filling during the past year, they questioned whether that expense was worthwhile.

Q: How much were they allocating to Kyle’s employer retirement plan?

They said they had recently maxed out Kyle’s retirement plan through his employer. The displayed total was $2,000 from his paycheck, including both their elected contribution and the company match.

Q: How did they approach grocery spending during quarantine?

Justine initially raised the grocery and toiletry budget to $700, but their final spending reached $863, which caused her considerable stress. Kyle explained that food had become more important because lockdown prevented restaurant visits and other outings.

Summary & Key Takeaways

• Justine and Kyle review their budget, income, and expenses amidst the lockdown, reflecting on the impact of recent events on their finances.

• They share insights on paycheck contributions, health savings accounts, insurance, and retirement planning adjustments.

• The couple discusses grocery expenses, lifestyle changes, charitable acts, investment losses, and plans for the future amidst economic uncertainty.