Happy 2020 everyone! So we have just entered 3rd decade of 21th century. We still don’t have robot slaves and flying cars (for now) but we are getting there. The world has become more and more hooked on mobiles, but enough about future, lets see how was our budget doing on Y2019. As you know I failed at running and weight losing. Our little one is doing great. Can you imagine we already have a 3rd person at home running around with her own opinion 🙂
Now to 2019Q4 budget. Ill keep it short as I like to focus on annual results. And we had a record income of 10 kEUR due to 2,4 kEUR received from unused holidays at my last job and increased salary from 1,4kEUR/mo to 1,7kEUR/mo now. This is a +0,3kEUR/mo increase 🙂 Expenses as usual record income = record expenses 🙂 We had 8,2 kEUR of spending this quarter. Main growth came from 1,3 kEUR spent on new sofa and 0,5 kEUR for new suit and jacket for my new work. Without these extra spending our expenses would be at 6,4 kEUR a bit above 5 kEUR target. In addition I can say I have spend 300-400€ with my old and new job colleagues at my farwell and greeting parties and another 300-400 went on food and stuff for our daughter 1st birthday and christmas. Expenses expenses, looks like one-off expenses is the most stable thing in our budget 🙂 Never the less the end result for Q4 was positive +1,7kEUR or 17% saving rate. I say this is a very nice result 🙂
Now lets count the chickens 🙂 Our Y2019 income was 30,6 kEUR or +5,1 kEUR / +25% if compared YoY. Main growth came from other income of 4,3 kEUR mainly from my unused holidays after switching job and gifts from our relatives for our girl baptism. My salary income has increases nearly by 2 kEUR but my wife income has declined by 0,6 kEUR due to maturity leave. Then the Y2019 dividend income, which stay flat for 3rd year in a row – 0,4 kEUR or minor 1,3% from our income. I expect some major growth in 2020 due to our latest investments in December.
Now expenses were high as shit this year – 29,1 kEUR. Growth on all categories:
- Cost on home – 7,5 kEUR remained similar as Mortgage payments (2,6 kEUR) and Utilities (1,8 kEUR) remained the same. Home repair – 3,1 kEUR also almost unchanged. This includes 70€/mo payments to my mom so actual home Capex was ~2 kEUR. I think it is inevitable when you have your own home.
- Food cost – 7,3 kEUR. That’s +1,5 kEUR growth. Sure its pampers and stuff but I think we spend bit irrational here. Ok some of that is my fault as cost on bars falls in this category 🙂 We should try to have this at least down to 6,5 kEUR or so.
- Transportation – 3,4 kEUR. Another increase by 1,7 kEUR or x2. New car has its price, but hey 0€ repair cost this year and I intend to have the car for much longer time then remainingn 6y of leasing.
- Holidays – 2 kEUR. We had quit expensive ones this year. Maybe we will try returning back to self planned holidays that have cost us ~1kEUR in previous years.
- Other cost – 9 kEUR. +2,6 kEUR compared YoY. This breaks down to:
- 1,4 kEUR daughter baptism.
- 1,6 kEUR clothes.
- 0,6 kEUR health.
- 5,4 kEUR other.
So final breakdown on fixed and flexible income. Fixed (Mortgage, Utilities, Food, Transport, Health) – 15,6 kEUR or 51% of our income, which is almost in line with 50% goal. But then there are flexible cost (Home repair, Holidays, Clothes and Other) – 13,5 kEUR or 44% of our income. This is way higher than aimed 30%. Need to more dig into that other cost as it makes significant amount.
And the end result was +1,4 kEUR or 5% saving rate. So we failed at Goal #1 of Y2019:
- Save 20% of income – Failed (Actual 5%)
Never the less the failed goal, income and expenses remain positive (!) and that’s a start. With higher income in y2020 reaching the 20% saving rate should be easier.