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Saturday, 18 July 2020

Expenses for past two years

I did my annual budget review, getting most of my expense data from my monthly credit card statements for the past two years, plus some adjustments for expenses paid via EFT from my bank account, and some uni fees I paid using my portfolio loan (ie. I effectively accumulated some 'student loan' liability doing my masters degree). Some of the figures may be a bit rubbery (for example I estimated my tax based on gross salary - tax home pay- SGL/SS deductions. In reality I will probably pay less tax than that, as I have deductions for margin loan interest that is usually a bit more than the dividend income I receive, so I get a small tax refund that I haven't adjusted for).

One striking thing was how similar the expenditure break-down was for the past two years. I don't deliberately spend according to a budget, as my savings are on auto-pilot, and everything else tends to stay fairly constant. I've projected my notional budget for this financial year - which is pretty similar to the past two years. The transportation costs might be slightly lower as I'm currently working from home, and I got rid of the S-type Jaguar that cost me quite a bit in servicing, rego etc. last calendar year. I haven't allocated that savings into any other budget category, so (hopefully) that should mean I accumulate some surplus cash in my savings account over time, and might be able to pay my uni fees from savings rather than increasing my portfolio loan balance.

I'd like to reduce our expenditure on groceries, as it seems quite high compared to some other budgets I've seen on PF blogs, but with two teenage boys that might be hard to achieve, so I haven't budgeted for any savings there. I'd also like to get some clients for my financial planning business (GFP) this FY, so hopefully there might be some revenue to offset the fixed costs of running my business.


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1 comment:

Financial Independence said...

Steady as rock, indeed. I like the idea of putting savings in auto and just enjoy the journey otherwise :-) Of course it takes away notion of continuous improvement a bit.