Seeing that it’s coming to the end of the year, I decided to run this year’s numbers a couple of months ahead, since I do not anticipate any major income or spending coming up. Not a celebrator (word?) of Christmas, hehe.
So here are my finances, laid bare for your perusal:
There is also another $20K+ worth of company stock given to me that is not included above, since I did not encash the stock. The stock still sits in my portfolio earning dividends.
Expenses figures under current are for 2013 spending. Under the retirement column are the projected expenses for early retirement.
The numbers in red are my greatest current weaknesses – cabs and snacks/eating out. Cabs are…well, a symptom of having to wake up at 5.30 a.m. every morning for work. I am trying to get that cut back, but I am at that point where I am wondering if it is worth spending the money just to make sure I get to the office faithfully instead of calling in sick…or quitting before I am ready. As for the dining out/snacks numbers, most of that is due to being at home for the last few months…I have been going overboard with delivery. As long as I am at work, it shouldn’t continue to be a major issue. I also have a habit of picking up the tab when dining out with certain friends, though that doesn’t happen so often.
I have also been trying to up the parental allowance portion; pay more rent, so to speak. But my parents refuse to take more as they are still earning an income. So, I just bank everything for when they actually retire.
The huge expenses for insurances are mainly due to my whole life insurance, as I am on a limited pay scheme. This means I pay extra premium each month, but I will finish paying by 45. Signing up for this was a youthful folly; I am now educated enough to realise the opportunity cost of tying up $700 a month in whole life insurance. However, given that I am now not in a position to qualify for more insurance cover, I am not sure if the whole thing did not sort of work itself out somehow.
You will also see no line item for charitable donations. I normally do them out of my savings and do not wish to disclose the figures. Personally speaking, my charity spending does not excite me, because it is all institutional donations. I do them simply out of duty. What I really want to do charity-wise is to give directly to people who need them, like, pay off a large medical bill for a specific kid in hospital, or something like that. I prefer the more personal touch of such donations. But I’ve done my research and found no reliable way of doing so at this moment. All charities seem to just want you to give them the money to disburse as they deem fit.
Charity rant aside, I think I did okay generally, except for the few weak points mentioned above. If we take away the spending on taxes, rip-off life insurance and on my parents, my current lifestyle costs about $17.5K currently, and that involves quite a bit of luxury spending. I honestly don’t think I am frugal frugal based on that kind of spending; it will be an insult to some people I know. 🙂 But I do think I spend relatively low against my income.
Well, $17.5K is certainly a figure that I could work with in retirement.
And here is the other half of the picture of my 2013 P&L:
As can be seen, I lucked out in the rental aspects for the past two years. When I bought the condo, I expected to only be able to marginally cover all my costs and earn my return through equity gain. Some deity in heaven must have been watching over me, and I managed to get a lease that paid almost 25% above market rate. I personally don’t think that is going to continue once the lease comes up for renewal next April, so I haven’t gone crazy spending that extra income, and have saved it all in case of any vacancy next year.
Okay, this is getting too long. I would like to talk about the retirement column a little bit, but it will have to be the next post