The Budget Balancing Act Begins...

The clock is ticking on my extra income from my roommate. She is moving out so now I am re-evaluating my budget so I can allocate my lowered income efficiently. I must admit it is not a fun process to have to account for a reduced income. Pair that with no raise at work for over 2 years and my frustration is building.

The drop in income essentially means I have less money to allocate to my life goals. I can still pay all of my basic expenses without issue. It is unfortunate since I am making some nice headway on a few fronts. This exercise is making me decide between some equally important goals for me. How do I choose between a bigger (and necessary emergency fund) and saving some money for my yearly travel?

I love to travel and that is what "keeps me going" during the rest of the year slog through work. I also need the emergency fund in case I become unemployed. I am leaning towards reducing the emergency fund contributions for now so I can have the money I need to cover my already booked travel and then evaluate again in a few months. Until now I was focusing on ramping up the emergency fund to fast track it. Luckily I have it at a good level now where I can slow down if I need too (I am at 2 out of 3 months of expenses).

I have to make my decision and my adjustments soon. Time is ticking until the income stops. I will be lucky to get 1 more rent payment before she is gone. At least I was given warning!