2018 Q2 Budget

And the last report at Q2 is our Budget. In short what was going on in our lives this quarter. Most importantly our newest add-on to the family is growing well. There were lotst of stress in the first quarter, but now everything is more settle. My wife gained +10 kg. which is 1/4 (!) of her as she was only 40 kg before πŸ™‚ She is doing very well now, i’m very proud of her. Last Friday she had her last day at work and now we are on vacation in one small town near the seaside called Ε ventoji. It’s raining for few days now, but should be better weather afterwards, but hey the weather is not the most important thing right now. Most important is to relax and enjoy our vacation before the big day at October πŸ™‚

Income

Income:

Ou yes… what about budget? Well not much. As mentioned in 2018 Q2 dividends we collected nice 234 EUR this quarter, which was slightly -11% lower if compared to 2017Q2 dividend income. On the other hand our total income reached 5,7 kEUR and was a record income level for quarter with no annual bonuses or +4% compared to 5,5 kEUR in 2017Q2. My salary was 3,7 kEUR compared to 3,5 kEUR, +0,2kEUR thank you raise. Wife received 1,7 kEUR compared to 1,5 kEUR year before, also a nice +0,2kEUR. This year we did not received tax refund, on contrary we had to pay to our state a little bit but hey taxes and death two unawoidable things in life πŸ™‚

Expenses:

On the cost side it was just slightly above our target of 4,5 kEUR and totaled to 4,9 kEUR. So were did we spend most of our money:

  • 1,6 kEUR or almost 1/3 of our expenses was on food. This was a record quarter spent on food, but I guess its a normal thing as we were not saving here due to our newcomer πŸ˜‰ Also I’m spending lots of money eating out at my work. I guess this is the spot were we can save some money. Average spending is 37% in my country so we are no different from the rest.
  • 0,6 kEUR or 13% was mortgage loan payment. In comparison to our income mortgage payment was just 11% which is weeeel above max. level of 40%. I’m very happy with this level as we can allocate our spending elseware πŸ™‚
  • 0,5 kEUR or 9% was spent on transport. Also another good level of spending as most of people do spend more then 1/10 of their income on cars. We are thinking about buying a new car as old one is 16y old and falling apart, literally πŸ™‚ I’m planing to set aside 100 EUR/mo for leasing payments. Presend fuel and repair cost should decrease slightly so the growth will not be that big.
  • 0,4 kEUR or 8% went for Utilities. As it is warm season payments are slightly lower. On average we pay 0.45 kEUR, which I find also ok. In total our spending on home is ~1 kEUR or 21%. Average spending in our country is 16%, so our spending is a bit higher, but since only ~20% has mortgage loans I find this number ok.
  • 0,2 kEUR was spend on clothes.
  • 0,2 kEUR on home repair. We bought a new wardrobe for our baby room. Next quarter there will be lost of cost here.
  • Then there was ~1,4 kEUR classified as other. Here we had quite lot of expenses on healthcare for various medicine, vitamins, scans ect.

Saving:

And the most important part – difference between income and expenses. This quarter it was +774 EUR or 14% of our income. This is almost in line with our Goal #2 – save 15% of our income. Average Y2018 saving rate is at 16% and so far is in line with the goal. Next quarter will be high on spending as usual as holiday expenses will kick in and also repair of kitchen will add up as well. Either way we are already above last years saving level of 1.9 kEUR so all we have to do is not spend more then we earn next half year and improvement will be achieved.

13 thoughts on “2018 Q2 Budget

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  1. Happy to know that you’re looking forward for family increase. That little baby will definitely change your life in a good way! We are talking from our 5 months experience of being fresh mam and dad.
    We also changed our principals of expanse tracking as middle of the year a great time to execute changes.
    All the best to you guys!

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      1. My son on August the 21 th will be big boy 1 year old:) family household budget with savings is good achievement . P2035 your incomes is very similar to my family incomes.
        my small financial goal is pay off my 5000 eur credit. there is 600 eur left..
        Good luck with savings, investments and baby πŸ™‚

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      1. Well, you don’t need a NEW, just another car.

        And definitely not leasing, unless it gives some extra benefits (for example, a simpler way to write out it as expenses when doing business compared to a personal car).

        The power of math πŸ˜€

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      2. Well car repair expensse is also a thing. Repair is getting more and more expensive here in LT. In countries like Sewden it even cheaper to buy new car then repair it. Buying new but cheaper, lower class, car is also an option. Buying used car is like buying cat in a bag. Im thinking about 2nd hand 2-3y old from a dealer. Yes it cost more but no risk of buying shity car. Im not an expert in cars.

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      3. Yes, repairs are getting really expensive these days. I sometimes think that it’s time to do car repair tourism. It’s so much cheaper to repair anywhere outside Vilnius πŸ˜‰ My 1998 car on February was leaking diesel, after inspection, it was found out that even engine oil is being leaked. Guess how much did it cost to fix? 30€ (10€ on parts and 20 labour).
        I’m sure in Vilnius I would have been told that I need a new pump and a new engine while in reality, only some gaskets (liet. tarpinΔ—s) needed replacements.
        Another example would be oil and air filter change – 5€ as longs as you provide oil, air and oil filters.

        A dealer will probably give even a warranty for some time, which is really nice mentally, but cost extra, which I paid when bought my motorcycle (though, it was already 13 years old).
        However, financially probably better option would be a slightly older car like 4-6 years. Unless you will choose a car which will still have manufacturer warranty for a few years.
        Anyway, don’t forget that the manufacturer warranty is expensive, it’s not like you get it for free. A reasonable car will not cost so much in upkeep. The yearly inspection will cost at least 200€, plus usual repairs are not covered under warranty like if you need to replace the main belt because of mileage, or change brake pads and so on. This will be really expensive to perform an authorised service.

        Anyway, I’m sure you did your research, and I hope you will happy driving your new car! πŸ™‚

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  2. P2035, I would try to buy used car from Germanys dealer, because of the Lithuania roads and lithuanians disability of cars maintenance. And remember – quite new and low class cars are often used by companys..

    Povilas, dont forget about safety and the ecology.

    Btw, im the top class Scrooge, im driving 1997 car and for daily use i use trolleybuses! πŸ˜€

    Like

    1. Hey Scrooge,

      Safety: for the winter bought new winter tires since that’s the most important thing you can do. Saving on it is stupid. So it cost 25-33% of the car price. The car has ABS. Plus driver do not have a teenage brain. I think that’s much safer than 95% of cars driving around, hence no accidents. Who knows, maybe even the old airbags would work in a crash πŸ™‚

      Ecology: the car eats very little fuel, is not really used in central city. Plus no need to produce a new. So definitely a very ecological way to drive. Many cars eat a double amount of litres of fuel.
      All those new diesel taxes seem quite stupid. Cars do not pollute that much in comparison to other things. The only problem is that if you put a lot of them in one place, and there is not enough ventilation/wind that causes problems. So, yes, limit the use of vehicles who do not qualify to a specified standard (say EURO4) in the central town. I’m not going to go there anyway πŸ˜‰

      1997 beating me by 1 year! I’m proud of you πŸ˜€

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