Family budget comparison 2008 – 2014

Non-inflation adjusted table of our family finance for the last 6 years:

Observations:

-         Education expenditure is up by ~$10,000.  Expect to remain stable next year.

-         Car insurance remained almost the same. However additional cost was two set of tyres (winter –summer) and annual service.

-         Miscellaneous expenditure was up due to the administration expenses (~$4,000).

-         Medical bills are up (additional dentist cost ~$2,700).

-         Bills are up (electricity and heating are up, etc).

-         Home, after extended period of time we started renewing some of the furniture – bed, carpets.  Additional electronics cost us  ~ $3,200.

-         Joy – $4,000 extra in comparison with last year. Two separate week breaks cost us $9,600 this year, which is $,2700 more than last year on the holidays. Another $1,300 increase came from random miscellaneous expenses.

For the next year, I expect to:

-         Spend more on clothes. We have been intentionally curtailing our demands but there will naturally need to buy some.

-         There will be no any additional administration expenses, dentist, less new things for home. Hopefully  any entertainment expenses will go down by $2K as well.

The plan is to stay under $100,000 a year. 

Family budget consumption categories (2007-2011 vs. 2011-2014), as percentage of total:  

  

This is the same information presented, per category - actual expenses:

If you will pay closer attention, it could be noticed even percentage wise our consumption categories are changed. We are paying much higher price to maintain the same life style - house, car, food. This is not taking into account that the overall bill is much higher.   Main contributors are house rent, bills, education, home.

In the first three years about 60% or $ 40K were essentials (home, bills, nursery, car, food) , second three years  it was 70% or $ 78 K and hardly anything could be done about it.  Admittedly we are renting a $650K house, so annual rental is about 4% of its cost.

What is important, raising expenses puts additional pressure on the size of my next egg towards the financial independence. Initial goal was based on $65K expenses a year.  At $85-$100 K a year I need to save at least $3 million to be independent.


One of the possible solutions is to take on more work, I managed to get some additional days at expense of the rest time.  It will compensate some of the expenses.  I only see the money early next year and plan to invest them towards financial independence.