now I understand what it means to have a detailed budget.
I have been recording my total daily expense everyday for the last 7-8 years, but I had not seen it as clearly as today before (since I had not categorized expenses). I appreciate the salary I have and having a modest life-style, but I gotta still make some changes to my expenses. Otherwise, having a positive chequeing account seems a distant reality. I can do better than that.
So, according to my calculations here are where my money is going:
Retirement contributions/investments (excluding the company retirement plan): ~9% of my gross income before the taxes
Fixed expenses (mortgage, insurance, cable/phone/internet, transportation (bus only), etc.): ~26% of my gross income before the taxes
Weekly allowance (including grocery and other minor shopping, breakfast, and books): ~9% of my gross income before the taxes
Family visits: 4% of my gross income before the taxes
Extras (hosting, dinners, gifts, clothes, etc. new estimation): 3% of my gross income before the taxes
House maintenance and repairs (estimated): 8% of my gross income before the taxes
Income taxes and company pension plan contributions: ~36% of my gross income before the taxes
Remaining funds: ~5% of my gross income before the taxes
The Remaining funds category is the one that will lift my chequeing account up to a positive balance; I wonder how this is going to happen?
Do not get me wrong; I am appreciative of this amount. Yet, inside I wish for more savings, more remaining funds.
The only category I can cut from is the Extras and my Weekly Allowance; if I can be smart about these expenses, my Remaining funds can be higher. I am kind of anxious. That is a challenge for sure.
I opened an Excel sheet to record the expenses in each category starting today; let’s see how it goes.
By the way, I kind of see great things as well; for example the retirement contributions and funds allocated for family visits. They are worth every penny 🙂