Jul ’18 Income and Expenses

Time continues to fly by and it seems I am late again on these, but never mind – here they are now, better late than never!

I have to be honest, I think I missed some expenses this month, but so be it – given I tend to err on the side of caution anyway (for example all fuel costs I count, although I can claim some back for work travel), so I am not too worried on that.

Income

At last. A normal, full pay cheque hit the bank account. That was such a relief – although still not as high as I would ideally like, it is at least back to closer to normal (think a near 10% post tax rise!)

My “standard” cash reserves are completely depleted which does leave me worried, but this was the month to see those fortunes change and start filling up the reserves again.

Well, that was the plan wasn’t it…..?

Expenses

Item Notes Amount
Things I choose not to avoid* Mortgage, Insurance, shared bills etc. – yes, we could move somewhere cheaper, not have insurance, reduce our bills a bit and so on, but we are where we are.  33%
Groceries All the food and other stuff needed for home  3%
Alcohol for home Home alcohol consumption only 5%
Bicycles / Car related Any costs related to either the bikes or the car  1%
Alcohol Out Generally, its the pub….  4%
Eating Out I include purchased lunches in this as well as meals out etc.  4%
Other My catch all for anything I may have missed….  5%
Holidays Any spending related to holidays, flights etc.  1%
Savings Anything left over! This includes money into ISAs, mortgage payments and non relief pension contributions. My company pension comes out before it hits my bank account so isn’t included, nor do I include the “top up” of money when my money goes into my personal pension (i.e. I put in £100, I register it as £100, not the £125 that gets credited in my pension)  44%

* This covers a number of things that I would class as essential for me. Yes, I could move to somewhere cheaper to reduce the mortgage (which in turn would reduce the insurance I have to pay), yes I could reduce my bills by switching energy supplier etc. but it comes down to what I am happy with. There are a few other things in there that are classified as essential that others may object, and so I have just lumped it into there.

So what to make of it all? The day to day stuff has come down nicely – a reflection of getting my normal salary back – so nice to have a little flexibility in the budget.

The downside, the increase in alcohol and food both at home and out went up. There were a lot of factors, going out with friends I hadn’t seen in ages, a couple of work events that I can’t claim for, some clothes, some stuff for home and so forth. It all adds up over time sadly, but hopefully that will have got it out of my system!

The savings rate going back up to 44% is a major plus – and I am hoping to get back above 50% now that I am on a more normal income, but let’s see!

Author: fireinlondon

Fighting the high cost of living in London

6 thoughts on “Jul ’18 Income and Expenses”

  1. Still looks like a good month . I’m debating whether to move my isa to interactive investor from Charles stanley direct due to the charge. I’ll have 50k split 40k in an isa and the rest in a general investment account. I could move to vanguard i suppose but am likely to try my hand at buying a couple of active funds and maybe even some shares once I have over 100k so it’d be nice to hold for the long term and I looks like a good middle of the road long term option

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    1. It is an ok month for me, but I want to get some cash savings up as I always prefer that! I don’t mind II to be honest, I dont have any funds so I only pay the £22.50 quarterly charge which is no different to my normal trading level so it works out quite well!

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  2. Yes I’ll own lifestrategy 100 and then I’m trying to decide whether to buy some individual shares or more concentrated funds in a general account once my grandads probate finally goes through

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    1. Hi FBA,
      Always a difficult one to balance – the thing I have enjoyed with VWRL is I really don’t need to think about it! 🙂 I do enjoy playing with the trading (gambling?) side – but you do have to be disciplined.
      Alternatively you could look at some of the Investment Trusts to get a bit of variety?
      Cheers,
      FiL

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  3. Hi FiL
    Great savings rate despite all that spending. The sunny weather I think has encouraged more outings and social activities but well, it’s not as if we get this nice weather all the time!

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    1. Hi Weenie,
      It is an ok savings rate, my concern is that whilst I continue to push money into the ISAs and pension, I am doing so at the cost of eating into my cash reserves, not good!
      As you say, the sunny weather does tend to make social activities a bit more fun!
      Cheers,
      FiL

      Liked by 1 person

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