Financial update #7

We have started to settle into our new house and get a hang of our monthy costs. They aren’t that much different than our previous costs. The biggest difference is that we are not paying off our mortgage as much as we did before and our rent on our loan is a little higher. Because of corona our spending per month has been lower than ususal. Not that we go out that much normally but we don’t have to pay two things that are a significant expense: my public transport card and LIL wolfs doggy daycare.

Because where we live is quite far from public transport and Mr LIL has to have our car for work every day we decided to buy a second car. It feels like a crazy decision (both from a money and enironmental stand point) but at the same time it will make my life when I am on parental leave so much easier. I would feel very trapped in our area if everytime I wanted to see someone or do something I’d have to walk quite a while to the bus and then switch transportation multiple times with little J and the LIL wolf. We recognize that this is a strong want not a proper need and we have said that we will evaluate our need for the car and sell it if we feel that we don’t need it any more. We bought a cheap and very small car with good milage from 2010 and payed with cash of course. We have also made sure we can afford it when we are living on Mr LILs salary.

Good news since my last update is that Mr LIL got a raise! I also decided a couple of months back to up my investing every month with a little so that we have had a savings percent of 38-39%. We have also reached one of our milestones: FU money (10% of our goal)!! It feels great to have achived this goal before we turned 30 and before little J arrives. Whohoo!! Check out what FU money is in JL Collins post Why you need FU money.

Year 2021 will be quite different for us financially. Instead of saving lots we will have a lot less income since I will be going on parental leave. The first step is that I have started to work 75% after the holiday so I am writing this on my first Friday that I have off. It feels like an incredible luxury to instead of trying to work as much as possible because we’re going to earn less we have had a financial plan in place for this period of our lives for a while. This of course is made much easier since we live in Sweden and have access to great parental leave and parental allowance. Our plan right now is that we will live off Mr LILs salary for the first year so that we can save our parental leave. We have gone over our finances and this should be doable. I will also get money from my job for the first 6 months which is a nice bonus. Then our plan is to be on parental leave at the same time for maybe 6 months and take out parental allowence. What’s left we will save to be able to take long summer holidays in the future. During the period I will be on parental leave the goal is make sure that we cover our monthly costs. We won’t be saving any money so our money making maching will grow at a slower pace. We have also set aside a buffer for this period incase we have any large exenses that pop up. It will be interesting to see how the next financial year pans out.

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