From tracking our money since August we have gotten a picture of our expenses and been able to get average spending on each post and also how much is possible for us to save. From that I have drawn up a general budget to have in mind during 2018. It’s going to be interesting to see if we can keep to it. Here are the percentages (the light green one is insurance 2,1%):
Since we want to able to feed our money making machine as much as possible we have a goal of 50% savings rate or more. With this budget we just hit 50 %. If we manage to save more that is great but our base is 50%. In saving we include mortage payment (minus the interest), saving for trips and saving in indexfunds.
This category includes mine and Mr LIL own expenses and also our joint ones. For example going to the movies, hygiene products, medicine, activities, presents, stuff for our home, charities and so on.
In this category we include our monthly fee on the apartment, internet, electricity and interest on mortage.
Food & drink
As the heading hints all our food and alcohol that we buy is summed up here (eating out, which we don’t really do any more is included in our own expenses).
Pets are expensive and if we didn’t have a pet (especially a pet with stomach problems) we would be able to save a lot more. That said we adore the LIL wolf and she fits perfectly into our lives so we don’t regret getting her for one second! Doggy day care is the large part of this category and then food, treats and things that we have had to buy (although that was more when we first got her).
Both me and Mr LIL have student loans to pay back. In Sweden universities are free and the loans come with amazing interest rates so most people take the student loan. Mr LIL and I both worked part time when studying but we also took the loans just so that we wouldn’t have to work like crazy to pay our bills and that we actually had some money saved up when we left university. We are paying down this loan slowly since it is better to invest our money instead.
In this category expenses relating to our car is added up (except insurance) like repairs, parking, yearly inspection and tolls. Mr LIL gets milage compensation from his work and since our car is so fuel efficient that also covers our petrol that we use privately.
Our joint insurances fall under this category: home, car and pet insurance.
So the plan is to try to keep to this budget so that we will be able to save a sizable part of our income. The thought behind this budget is that we will keep to this even if we get raises so that our savings rate will get higher over time while our expenses will stay the same. This way we’ll avoid lifestyle inflation.