Thursday, 5 January 2017

Budget2017

I keep going back and forth with the sum set for my budget for 2017.
Not that it REALLY matters, I will not increase the costs anyway.

My budget is divided in the following parts:
Fixed costs house 1, fixed costs house 2, bucket, weekend and fun.

(Note that none of these houses are actual semi-detached free-hold own garden houses. I do not own any property. Both houses are rentals to which we have legally protected rights; one even has a paid tenants right that I can possibly get back when I move. Different countries, different rules, different terminology. Different people, different choices.)

Fixed costs house 1 contains fixed costs for house 1. They are all in the man's name and I pay him my part through a monthly fee. There is no mortgage involved.

Fixed costs house 2 contains fixed costs for house 2, including monthly fee, electricity, home insurance, unemployment insurance and bank fees. There is no mortgage.

Bucket is our monthly running costs or at least the receipts that makes it into the  - yes! - the bucket. (If you don't have a receipt, or write down the cost on something else, you're paying for it. Simple rules.) Everything we share goes in here. Food, wine, snacks, coffee out, cleaning, toilet paper, anything and everything we both use.) The bucket gets calculated very irregularly, say every six weeks or so and is kept running on a 'who is ahead-system'. (When calculated there is a note in the bucket showing who is ahead and with how much, and that is deducted the following time the bucket is counted out.)

Weekend is an amount of money I set aside in my monthly budget for our weekend-trips. I value trips and travels and even though we do not get away every month, I set aside this in the budget every month to at least have something available for when the wanderlust drives me back out on the road. Some of my trips are more work-related than vacation and therefore not even within my budget. Not every trip is over night while some trips are a month long and do take a bit of money. We count the costs for weekend trips separately and try to even the spending out between us and the surplus is deducted against the bucket or the fixed costs 1. We never pay money to each other. Obviously we also do not have a shared economy and there are very good reasons for that.

Fun is my private spending, my pocket-money. It also pays for clothes, hair, lenses, mobile phone, local transports, sweets, books, health and teeth costs as well as anything else that I want to spend money on and am not sharing with the man. This money is also used when I take the man out for a date (or pay for his coffee more likely). It also pays for "lunch" at the office if I am too lazy to bring a lunch box. "Lunch" because it is most likely going to be a box of hard bread (knäckebröd) with the simplest spread (leverpastej) on it. I have no debt, student loans were paid off many years ago, otherwise that would have come out of this pot too.

The annual budget is simply 12 times the monthly budget and is calculated to never be exceeded in total. If the annual budget however is exceeded, it must be because the exceed paid for great memories or learnings, or I will sourly annoyed, but with savings and buffers in place, it is allowed to happen if it is worth is.

The annual budget is 10% more than I would have to live on if I get long term sick or long term unemployed. It is around 20 % less than what I am hoping for when I retire in 20 years (cost increased) if I don't make any more money until then. But I hope to keep my savings and my buffers intact and growing slowly and steadily.

2 comments:

  1. This sounds like a very sensible and well planned budget :)
    Thank you for visiting and commenting on my blog
    x

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    Replies
    1. It is indeed the result of a lifetime of frugal living and the last six years focus on money. One does not establish a budget division in one attempt.

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