Now that we’re coming up to the end of this year, I’m putting together monthly posts to expose the exorbitant costs I’ve incurred in the month of November. Drum roll please!
Ok.. let’s look at the nitty gritty detail:
Yikes. Not so good, given that these expenses sum up very closely to my after-tax pay cheque…risky!
Ok, let’s break this down:
My overall living expenses are 48% of my monthly costs, and this is being generous with groceries ($445 for one person – yes I eat a lot AND can’t resist lots of good cheese!). One-off costs were particularly high this month but most expenses were because of booking flights back home for Christmas last minute at inflated prices (should have booked earlier, but what can you do?), buying furniture (TV can’t go on the floor), gym gear (needed a second martial arts kimono) and gifts.
Apart from the one off expenses, all ‘other expenses’ totalled <$1000, or $257 if you remove the entertainment expenses (majority on McDonalds and take-away lunches!). Other expenses included taxis and public transport ($83 – not much but as I live so close to the city transportation is free as I walk) and other random unnecessary costs (more make-up to add to the collection!) or dry cleaning (rare).
Most entertainment expenses were small transactions for take-away food out of convenience, mainly buying lunch at work when I forgot to pack my lunch or hadn’t done my groceries. A small $15 here and there adds up pretty quickly, doesn’t it?
If I cut down my ‘other’ expenses by 50%, then this leaves me with $1,820 I could put towards investments! Converting this into FIRE (Financially Independent and Retired Early) language, if I invest the $1,820 into investments which give me a 4% annual return, then this is $73 per year.
If my annual living expenses stick to $40,000 a year, then each day is $109 ($40k / 365) so that investment of $1,820 at 4% return p.a. gives me 2/3 of a day of freedom…. forever!
Time to cut down on all those cocktails and take-away burgers….
xx Miss Piggy