Here’s July’s spending report. Below, you’ll find a few explanations to give you some context and then the categories where our money gets spent. Aiming to become financially independent means we want to keep our spending as low as we can.
This year, we’re having to deal with some health related challenges that has inched our spending up. We can afford it, but it also means our spending in some categories is higher than we’d generally aim for. Health trumps everything else though, so it’s important to prioritise.
credit cards: how we buy everything
easier to track expenses
We track every single penny we spend. So, we like to do most of the spending on one card. I also have my card linked to my phone so I’ll get a notification every time I use it – easy to pop the expense in our budget tracker right then & there.
Our credit card is a rewards card, so we earn points whenever we spend on it. This helps in the long run, using our rewards on things we’d normally pay for – saving us money in the long term.
build our credit
For simplicity, we could just pay on our debit card for everything, particularly as it would be even easier to track expenses that way instead of using a credit card and debit card. However, it’s important to build up our credit history and maintain a good credit score rating.
And yes, we pay off our credit card in full, every month.
how we organise our expenses
As I alluded to in an earlier post, we track every single penny – more on our budget strategy in this post here. So what we generally do is put numbers next to categories but those numbers aren’t set in stone. We generally try to spend as little as we can, with those figures there to guide us. In my report, I haven’t added the planned numbers, just the actual spend.
what you won’t see here on a month-month basis
We pay for some things up front on an annual basis. All our insurances are paid this way, as is the car tax and we tend to do our charitable donations all in one month at year end. Those expenses will pop up in the month they’re paid.
|Housing (rent & council tax)||£1,761.00|
|Utilities (electricity, water, tv, music, mobile phones, broadband, cloud storage)||£176.82|
|Food (groceries, household goods, food out (work lunch & eating out))||£665.56|
|Personal spending (own money, haircut, work clothes)||£338.25|
|Transport - train (commuting)||£604.48|
|Transport - car (petrol, parking fees & tolls)||£44.01|
|Misc spending (incl health spending)||£671.88|
Total £4,870.27 || Savings rate 32%*
*(excludes passive income)
notes on july
- definitely an expensive month!
- misc spending includes health spending which is higher than normal this year & very expensive this month as I paid £416 for a private prescription for some antibiotics that weren’t available to me on the NHS.
- we had a trip planned this month for a lovely city break that we couldn’t go on in the end because of a flare of my digestive condition. This was a double blow as we’d already paid for the accommodation and transport we couldn’t get refunds on. Chalk that one up to bad luck.
- train commuting is higher this month as Mr NC has invested in a road bike to cycle to work to eventually save on transport costs.