2017 Q2 Budget

As spring and 2017 Q2 has passed its time to “count the chickens” as they say in my country. In general quarter was very rich in events. We visited Belgium and it’s capital Brussels. Not a real holiday, just a visit to my sister, but new country and its capital visit so one of Y2017 goal is ticked as completed (!)

Goal #4 – Visit a new country – Completed 

Also there were some other events but I will not go very deep to it. So lets go trough the numbers what was going on in our Income and Expenses last quarter.

Income:

Not much to say on our regular income side. Same old same old 🙂 My wage remained at same 3.5 kEUR level and my wife at 1.5 kEUR. My wife got a tax refund of 144 EUR, while I had to pay for last years dividends, so no refund for me. Some income from military 116 EUR for two wonderful weekends. And the last but not least 263 EUR Dividend income. This was a record quarter for me and the income increased +20% if comparing to yoy. In total we received 5.5 kEUR income, which is ~100 EUR higher then year before or Δ+2%, but still some growth 🙂

Income

Expenses:

Expenses went wild this quarter and was well above our average – 5.2 kEUR was up by 0,8 kEUR or by Δ+19% from 4,3 kEUR year before. Lets analyze how this happened:

  • Mortgage loan: declined from 0.8 kEUR to 0.6 kEUR due to change in interest. That’s a nice -133 EUR/Q from our expenses line.
  • Consumer loan: But this was ‘compensate’ by 100 EUR increase of consumer loan with expenses of 0.13 kEUR. My wife purchased new phone with 10mo repayment in parts, which ends at Q3 so we will have a decrease in this line soon. Also wifes student loan repayments started so the expenses increased from 30 EUR/Q to 60 EUR/Q either way this expenses line will decline from coming quarter.
  • Utilities: bills were 0.5 kEUR or almost the same as year before. I consider this as a normal level.
  • Food: I can say that these expenses went trough the roof last quarter and reached 1.4 kEUR level. That’s 143 EUR hither +12% compared to 1.2 kEUR year before. Yes the prices went up but we have to admit that this line is out of control. I’ve started this eat home food at work self saving motivation which should help me to decrease this line at least for a bit. Need to keep this line within 1 kEUR level.
  • Transport: was in a normal and quite good low level of 0.3 kEUR and did not changed to much compared to year before.

This adds up to fixed costs 2.9 kEUR. Earlier in 2017 Q1 budget I have set a indicative 2.5 kEUR fixed expenses line so we are 0.4 kEUR above it. This could be fixed by saving on food expenses which have to say went up a lot.

  • Clothes: increased a little bit to 0.22 kEUR but its a normal level I could say.
  • Hollidays: small 0,13 kEUR expenses for visiting Belgium. Airplane tickets were already bought. Also we bought hotel for few days in soulth Poland which we will be visiting for few days next week with my wife sisters.
  • Home repair: 0.5 kEUR bought few needed stuff here and there. One very nice purchase was a hanging chair that we put into one of our balcony. Very nice for reading and my wife likes it very much. Just 100 EUR, this is not big money for stuff that you really like.
  • Other cost: it also went trough the roof with 1.4 kEUR this line was the most responsible with 0.6 kEUR / +87% increase for that total expenses increase. Lets dig a bit deeper here it all went:
    • 179 EUR presents – we had lost of birthdays in Q2 in our family.
    • 167 EUR drugs – increased a bit due to our goal #1 (don’t start asking no result yet)
    • 136 EUR healthcare – also increased due to same reasons.
    • 148 EUR wife online purchases
    • 98 EUR cosmetics
    • 67 EUR income tax for Y2016 dividends.
    • 62 EUR Aquarium stuff. Renewed it, bought fish and plats and now it works again, not just a box with water in it.
    • 59 EUR running shoes. Since I started running longer distance a good running shoes is a must.
    • 36 EUR meditation app – this is also a very well spend money as I feel lot better.
    • 33 EUR website http://www.p2035.com yearly subscriber fee.
    • 353 EUR other

None fixed expenses 2.2 kEUR also well above targeted 1,5 kEUR none fixed expenses line

All in all quarterly expenses were somewhat 1.2 kEUR higher then our targeted 4 kEUR level. Yes this was due to big bonus that I received previously, but still it was to high and needs to be brought down.

Expenses

Savings:

Despite record spending we still managed to earn more then we spend (!) with Net result of +0.3 kEUR and 6% saving rate.  Bellow our Goal #2 – Save 15% of income, but still a very nice result. As our 2017 Q1 saving rate was at record 30% our Y2017 average saving rate has declined to 19% which is still above our this years target, so nothing is lost. Everything depends on next half-year. How was your budgets?

Savings

6 thoughts on “2017 Q2 Budget

Add yours

  1. Grats on meeting some of your goals for 2017. I think it’s important to have written goals. Although you did not meet them all, that’s ok because you’re paying attention.

    Like you, my food “budget” needs to be reigned in. I say budget in quotes because I don’t really have one. Don’t get me wrong. I do track my income and expenses but I don’t set a hard and fast limit on how much money I should spend in any one category. I’ve noticed that for the past two months I’ve really overspend a lot to the point where I had to use the credit card. So sticking to a budget would have been helpful.

    Hopefully for Q3, you will get closer to your 15% savings goal and and have reduced expenses than Q2.

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    1. We also dont limit ourselves on spending but when you put the numbers together you see where you have to spend less. Then you take specific actios. For example drink less acohol, eat home made food at work. I will write a separate post on saving on food line, but first I need to have a result 🙂

      Like

  2. Hi P2035,

    Really enjoy your blog/personal finance place here.

    Personally have been studying and working on personal finances for almost 10 year now.
    I do also follow up our family budget on a monthly, H1/H2 and annual basis.

    Looking on your expenditures level – seems very lean and economically lined – whereas don’t see any car/transportation usual cost line (for example I have “sold” my car to bank on a good interest rate, to freed up some cash and get it back to stock market, as a result on a monthly basis I get some ~260 EUR/month as a leasing and insurance package expensive)

    Nevertheless seems that you are doing a great job here.
    Small tip from my side, when reaching for #1 goal on your side – do not forget to plan extra funds as incomes will drop for some while on your family budget while costs will go up at app. same amount how the income drop was.

    Personally have a target to save up to 25% of our family income & increase expenditures on trips (that’s nice goal, a?:), currently covering ~18-23% in total.

    by the way which of calendar month is “money generator” at your side? personally it is May – when most of dividends are coming in, and expenditures are getting on low level not on summer level and already not on winter season.

    Like

    1. Hi, Jeronimas. Thanks for your comment. Nice saving rate 25%. Personally +10% is quite good for us for now. Step by step 🙂 Yes Goal #1 will cost us, but is that really the biggest issue. As you can see we get most of dividends at Q2.

      Like

  3. Hey!

    “My wife purchased new phone with 10mo repayment in parts, which ends at Q3 so we will have a decrease in this line soon.”
    This part is totally anti-mustachian! How dare you??! 😀

    Like

    1. Well the price was the same as to buy it at once or pay in 10mo. Seller took all the interest cost so it would be stupid not to take it 🙂 This was not a fancy iphone for 1k€ just a regular simple phone for 300€

      Like

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