How to calculate my expenses?

Everything has a price and the monetary price you pay are your expenses. You can take most of them out of your ebanking / creditcard transactions and add the things you pay in cash.

I group the expenses on a yearly basis (to keep it simple):

  1. Rent (or mortage payment)
  2. Food (at home and restaurants)
  3. Transport (car / public transport)
  4. Communication (mobile phone plan)
  5. Clothes
  6. Leisure (gadgets / spotify / going out / gifts / social things)
  7. Sport (gym subscription)
  8. Travel
  9. Health
  10. Insurances
  11. Taxes (unless already deducted from the income source)
  12. etc.

How to define the amount per expense group?

Important is here to not try to be very accurate since is almost impossible to achieve. If I can’t define the yearly cost per expense group, I guess them and review it every 6 months to check if it is accurate. My system to manage money highlights unexpected expenses very well but more on that in Level 1: Install a system to manage your money.

How to summarise and monitor my expenses?

I use a simple spreadsheet where I update the value of my expenses over time. You can create your own spreadsheet or use my personal FIRE template.

1 Comment How to calculate my expenses?

  1. Pingback: Financial optimisation – where to start? Giles.Money

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