My Frugal Miser - 2011 Capital Budget

One of my three September goals is to create a Capital Expense budget for 2011. I am happy to report I am finished with my planning for this and it is ready to be implemented. The hard part was figuring out what to include in the budget, how much each of my major annual expenses are, and what they might be in the future.

In 2011, I need to allocate $2,000 per month toward future expenses. I will deposit this into my ING Orange Savings account and allocate it as I incur the expenses.

So I'm sure you are wondering what expenses I am including:

• $521: First, something new I am doing is setting aside 10% of my monthly gross rental income (currently $521 per month when all properties are occupied) for expenses associated with my rental properties. This would include new carpet or HVAC replacement - two major costs I incurred recently and wish I had planned for - and other large expenses such as new appliances and repairs.
• $417: Second, I am setting aside $417 per month ($5,000 per year) to fund my Roth IRA.
• $910: Third, $910 will be deposited each month to cover those pesky expenses I dread: property insurance (for 8 houses), car insurance, fire dues, car tag and pest/termite control (again, 8 properties).
  
• $152: Last, to make it a nice round number, I will add a $152 monthly cushion just to be safe. My initial thoughts are that I will use this to fund a Health Savings Account. I currently have COBRA under my old employer's plan but am about to switch to a high deductible plan.
  

So, how do I come up with $2,000 per month? Fortunately, most of this is money I am already spending. I just haven't planned for it before. I'm just adding a little discipline. I HATE surprises, so really I'm doing this so there are none. I mean, wouldn't it be perfect if your personal finances really were on auto-pilot? This is the direction I am headed. I just have to have enough gas in the tank to get me to my destination.