I updated my monthly expenses tracker with June data, so now have the complete 'actuals' data for last FY. Turned out that the 'budget' I had drawn up in July 2025 (just after I was retrenched and entered retiremen, but before then deciding to seek a new career) was excessively optimistic. The major expense blow-outs were:
* monthly groceries averaged $1,711 per month, a lot higher than I had projected ($1,000/mo). For this FY I have increased my 'target' to $1,250 per month, but meeting this goal will still require cutting out a lot of snack and junk food purchases (which will be good for my health anyhow). Cutting down on diet cola consumption since resuming full-time work will also slash my grocery bills (the latest monthly bill for the credit card I use for all my grocery shopping was 'only' $1,066).
* household items averaged $1,228 per month. But this was inflated due to large 'one-off' expenses in May/June due to having to replace 30+m of garden boundary fence, and also having a major repair done to our sewer line. Barring any unexpected major expenses, the $550/mo target should be sufficient for normal minor repairs, appliance replacements etc. We are not planning on any major home repairs or renovations, as we might 'knock-down, rebuild' our house in 5-10 years time (when my investment property is paid off).
* entertainment costs were inflated by spending on hobby equipment (gold fossicking mainly). I have more than enough hobby items cluttering up the garage, and with my full-time job and part-time PhD to occupy my time, I really do not have time to waste on any hobbies at the moment -- so it should be easy to avoid making additional purchases this FY.
All the other categories were reasonably close to expectation in FY26, so I've used similar amounts for FY27, just incrementing those costs I expect will have significant price rises (council rates, electricity and water bills).
My budget for FY27 comes in at $4,438 per month ($53,256 pa). This fits in with my regular QSuper pension income ($2,637 per month) and part of my take-home salary ($2,218 per month). I am diverting part of my take-home salary into my investment loan offset account. And my annual minimum SMSF pension payment (around $62Kpa) is being recontributed into super (using my concessional contribution 'cap space') and the balance added to my investment property loan offset account (to reduce the amount of loan interest payable each month, and offset the loan entirely within 5-10 years).
The budget is more of a 'road map' to follow, and track actuals vs. budget, rather than a 'rule book' I have to follow. I expect the actuals for FY27 will not end up exactly matching my budget plan - after all I don't know what expenses will rise due to inflation, and I also do not know if my QSuper pension will increase (there is an annual 'adjustment' based on actuarial data and the performance of the underlying investment fund vs. a benchmark hurdle). I also do not how my employment and salary may vary during the next twelve months.
Budget FY 27 (expenses): Income FY (to cover budget):
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