These are exciting numbers for us.
To be close to 40% of take home pay in savings is beyond what we had expected. A few things have helped. The taxes here have been less than we estimated, we chose a smaller rental apartment with lower rent and we haven’t bought a car.
June wasn’t a great month for casual spending or eating out. With a touch more planning and frugality we’ll be saving even more. We also purchased our tickets to Dublin out of our general spending but from here on out all travel will come out of our separate travel savings account.
So far so good with the reverse budgeting. Where I see stumbling blocks is when we have bigger or unexpected expenses. But at the moment we would rather throw as much as we can into savings and then dip in when something arises. Here’s a breakdown of percentages of where our take home income went last month:
- Savings: 37.3%
- Accommodation: 28.6%
- Food: 13.8%
- Travel: 6%
- Eating Out: 4%
- Grooming: 4% *Bought a UK hair dryer and flat iron – normally this would be 2% at most.
- Transportation: 4%
- Casual Spending: 3%
- Dry Cleaning/Clothing Repair: 1%
- Child: 0.5%
- Misc: less than 1%
- Charity: less than 1%
- Gifts: less than 1%
Savings: I’ve included the total percentage of savings but this is actually split into three categories/accounts. We have General Savings, Travel Savings and Education Savings. I’m officially saying we are saving now because we have enough in our accounts to pay off our final consumer debt.
Accommodation: this includes utilities and phone/internet.
What always surprises me is how much more we spend on groceries than I expect. We are spending 100-200 pounds more than I had initially estimated. I always forget that you need to stock up at least once a month on staples like toilet paper and dish washing soap. What category do you constantly underestimate?
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