Financial review for 2015
Now that the year 2015 ended, it is time to do a full review of income and expenses between January and December 2015.
How to read these numbers?
The figures of this year are somewhat intertwined. Dr. and Mrs. Minimal officially began living together toward the end of the year, and have set up their common expense management system at that moment. However, on this blog, we are interested in the expenses of Dr. Minimal for Dr. Minimal. This means that the expenditure of the Minimal family are added to the expenses of Dr. Minimal at 50%.
Example: Dr. Minimal buys a €3.80 steak and eats it. Soon after, Dr. and Mrs. Minimal buy a steak at € 3.90 (sacred inflation), and eat it together. Spending for Dr. Dr. Minimal Minimal are therefore € 3.80 + 50%*€ 3.90 = € 5.50 and not 3.80 € + € 3.90 = € 7.70.
For the income shown here, they are only those of Dr. Minimal.
Okay? Let’s continue.
Expenses : 25,847 €
Housing, real-estate: -7,693€
Real estate was the budget of the year with the purchase of my primary residence as a future rental investment. The loan repayment amounts to € 4,390. There are €993 for the rent of the flat I was renting until the renovations for my apartment were done. The vast majority of furniture, equipment, work was funded by the loan, the amount paid out of my pocket amounts to €965, mainly decoration and some unfunded accessories. There are €728 in electricity bills: I was paying an insane bill of up to €85 / month in my previous rental accommodation (I never understood why), I hope to dramatically reduce the bill for 2016.
Property tax (owner privilege) amounted to € 481. The building is managed by a big real estate agency (Foncia) which I find quite expensive (my quarterly share is € 170), but the building is well maintained.
We have a home insurance of €124
imposed strongly suggested by the bank I contracted the loan with. I just sent the termination letter for a cheaper insurance ;).
Outings, trips: -7,504€
Second biggest budget of the year: outings an trips, with two long road trips in the USA and in Europe. This includes some provisional expenses (hotels, plane tickets) for some trips coming in 2016.
This budget includes all the expenses while traveling: food, transports…
Plane, train boat tickets: -2,393€
This budget represents the train tickets, plane, car pooling for any movement outside my hometown. So we find there plane tickets for my international travel for 2015, the ticket purchased in 2015 for trips planned in 2016, but also tickets train / plane for the weekend with family in another city.
Restaurants, parties: -902€
€ 75 / month in restaurants and parties. I had a period of a few months before Mrs. Minimal moved in with me where I tended to use too much home food delivery services and pubs. This budget will be drastically reduced for the year 2016.
Living expenses: -4,335€
Groceries, cat food, gifts over the year, clothes, mobile and internet plans.
Food, supermarket : -1,476€
€ 120 / month: I do not expect that this budget decreases much for the coming year. As we prepare more meals for our work at home, this budget should even increase.
Clothing : -696€
58 € / month of clothing. There are mainly two pairs of good quality shoes purchased earlier this year that I will probabily still be wearing for the coming year, one or two jeans, a leather jacket and some t-shirts .
Internet, TV, Telecom : -386€
The joys of a €20/month Internet subscription with no TV and a mobile plan at € 11 / month then 5 € / month.
Shopping/eCommerce : -318€
Some expenses (mainly Amazon) incorrectly categorized, which should probably be assigned to home improvement budgets, but I can not remember exactly what it is.
Snacks, meals at work : -477€
€ 40 / month, this budget will shrink in 2016 with the habit of preparing our own food for work at home.
2015 property & income taxes. To this we will have to add the owner-property tax in 2016 :(.
Leisure, sports: -2.087€
Sports, electronic gadgets.
Sport memberships: -558€
A $40 monthly subscription to the gym and a (single) 90 € to a yoga class, for a total of € 1.5 / day. I won’t renew yoga this year, but I keep the the gym membership, which although excessively expensive gives me a perfect stress relief tool and remains a good investment for my health in the future.
Vehicles, transports: -634€
This budget could have been called “The relief of not owning a car”. Here there are about € 1.7 / day, which includes a subscription to public transport system, tickets for public transport when traveling to other cities, and occasional participation to a gas tank when I travel with a friend’s car.
The term “service” is exagerated. There are € 214 banking fees due to the cost of having two physical banks, fees from purchases abroad (I refuse to integrate these characterized theft to my travel budget), and a few overdraft fees due to stupid mistakes. For 2016, I will keep a physical bank (the one where I have my loan) and an online bank that serves as a common account Minimal family.
There are about € 400 € for various health-related expenses, from which €200 have been refunded.
My main source of income is my salary (€27,340). We then find €1,668 of received gifts, €1,020 of rental income (exclusively Airbnb) and … € 80 of interest earned on my saving account! Actually, other investments such as my life insurance earned me about €300 of interests this year, but I have not included them in this review. I have also not included the bonuses paid by my employer that I have transferred to my company tax advantaged account, those will only be integrated when I withdraw them. The road to financial independence (destination where the interests of my capital can replace my salary income) is still way ahead, but the path to it will certainly be exciting!
With the purchase of my principal residence, moving in with Mrs. Minimal, and two road trips of several weeks abroad, 2016 was particularly stressful from a spending perspective. However, the income of 2015 allows me to generate a positive cash flow (+€ 4000) and thus a net-net saving rate (after all taxes) of 14%, which is not so bad. The analysis of these expenses allows me to see where to improve my expenses for the year 2016 and set goals for the coming year. You guessed it, increasing my savings rate is one of my main goals for the year 2016!
See you soon,