Budget Check In: February

My second proper budget check in (having been blogging for 14 months. Small victories). And a lovely short month to focus on, after January which seemed to last 3100 days instead of 31. However, it did contain the February half term holiday; and an even-more-enormous-than-usual heating bill after I did the meter readings and it turned out we used a whole heap more than anticipated in 2020. This was also the month that we had to pull the house deposit together. But here we are: a check in of spending and saving for this month.

Month 2! Photo by Glen Carrie on Unsplash

I carried on the habit of tallying up the budget weekly, which I found really helpful. What I also noticed was that I do well throughout the month then have a sudden splurgy freakout in the last week and get takeaways etc and generally let loose. I had never really understood that I did this, and it’s so helpful to identify habits like this and be able to work on them.

So, how did we do?

  • I spent £6,164, or 133% of my monthly budget. This clearly sucks. There were three issues this month: £700 on winter tyres (I didn’t need them last year, but with temperatures of -9 and weeks of snow and slush, this year I really did). We also went on holiday for the February break, which cost £978, sharing a holiday home with another family just a 90 minute drive away. This felt expensive but it was totally worth it to spend time with others, somewhere with a heated pool and a hot tub. Money well spent having not spent a night away from home since June. Finally, we had a monster heating bill of £1,000 which will be the same every quarter this year. Blimey. We got all the old jumpers, socks and blankets out the day I got that bill, so fingers crossed that we won’t have another such bill next year.
  • There were some smaller over-spends against the monthly budget but these should work their way through. I spent £100 on a birthday gift for a colleague where others will pay me back; and another £100 on a series of exercise classes prescribed by the doctor, where my health insurance should cover the cost. Starting that exercise class is hopefully a step on the road to a healthier me, but oh my gosh it’s total hell.
  • But there were also lots of areas where I was well under the budget, and I spent 104% of the grocery budget which is the closest I have come to sticking to this one and which I am proud of! So, some gains in spite of the overall overspend.
Winter tyres. Surprise huge payment! Photo by Sid Ramirez on Unsplash
February
Item Monthly BudgetSpent Feb% of monthly budget
Childcare costs £         1,100.00 £          730.0066
Car (insurance, tax, petrol) £             125.00 £          731.82584
Charity £                66.67 £             25.8339
Eating out £             120.00 £             92.7177
Entertainment – subscription £                50.00 £             37.2474
Entertainment £             100.00 £             16.0216
Kids – extra curricular £             250.00 £                     –  0
Family £                50.00 £                     –  0
Groceries £             400.00 £          417.87104
Holidays  £             300.00 £          978.41326
Insurance £             200.00 £                     –  0
Personal care £                30.00 £             73.45245
Shopping – general £                25.00 £          134.12536
Shopping – gifts incl birthdays £                58.33 £             86.00147
Shopping – clothes £                29.17 £                     –  0
Rent and Bills £         1,500.00 £      1,500.00100
Transport £                41.67 £          101.16243
Utilities £             200.00 £      1,240.24620
TOTALS £   4,645.83 £      6,164.87133%
Savings though – am I sitting on a pile of cash yet? Photo by Mathieu Stern on Unsplash
 Monthly BudgetFebruary% of plan
Mortgage Capital  £                    865 £                 865100
Mortgage Overpayment  (actually deposit this month) £                1,250 £                100080
 Emergency Fund  £                    100 £                100100
ISA £                1,250 £                50040
Kids savings £                    248 £                248100
SIPP £                    300 £                300100
  £   3,148.00 £ 3,013.0087

Whilst the savings rate doesn’t look as good, I didn’t count up everything extra that I paid to my deposit for our house in Denmark, which all had to be in the account by the end of this month and which is in place! That’s £90,000 as a down payment ready in the bank, waiting for a big decision next month. I struggled to get the last little bit in place, so even though it looks as though I saved less than planned I am pretty confident that any additional money trickled into the deposit account and will count as capital at some point!

Overall I saved 34% of my income, and spent 66% which is a little worse than planned.

Hopefully this is because of money spent – such as on the car – where it will balance out over the course of the year. And I am proud of some of the areas where I have been able to really control my spending and starting to see changes, such as grocery spending.

How was your February? I’d love to hear how its going!

Budget Check-In: January

In the spirit of trying to be more self-accountable, here are the monthly figures. I have to say I feel quite proud of having actually engaged with the budget during the month – I do realise that’s the point, but as noted I have tended to treat my spending tallies more as a summary of mistakes rather than something I can use to tweak behaviours and get back on track.

About to end! Photo by Glen Carrie on Unsplash

I have been tallying up my budgets weekly and found it really helpful. It also takes such a short time, and removes The Fear of having to suddenly spend four hours pulling it together at the end of the month.

So, how did I do? Not badly in some ways but not great in others:

  • I spent 95% of my monthly planned budget, or £4,414 out of a planned £4,645. In some ways this is great since it’s under budget – but looking across the lines it’s clear I should have spent even less. Some annual costs (such as kids’ extra curricular activities) are budgeted for monthly but I didn’t spend anything this month, meaning in theory that at some point I will overspend if I don’t pull it back from elsewhere. I spent quite a bit on gifts but January is birthday heavy for us so this one should work out.
  • I still spent 150% of my grocery budget. This is SO ANNOYING – I was at almost exactly £400 on 30th January but we had a birthday dinner to host today so I went crazy in (the most expensive) supermarket. I knew as I was doing it that I was already regretting it. Something to continue working on, clearly.
  • We hadn’t planned for the impact of Brexit. I feel like, in the words of Lily Tomlin, it’s going to get a whole lot worse before it gets worse, but the immediate impact was that we couldn’t watch the telly. I might appreciate that this is small beans compared to, well, so many other things, but – the telly! We normally watch Prime, through my UK account, and pay additionally for some channels. 1st January – nada. I spent a frustrating amount of time trying things out (turns out you can’t get Brit Box in Europe, since apparently it’s only available in Anglophone countries) and did the single mum thing I hate – asked One Of The Dads to help since technology is a Boy Thing. Shakes fist at self. So I ended up buying an Apple TV box, cancelling my Prime subscription and trying HBO Nordic. We don’t have terrestrial or cable TV so I don’t mind paying for *something* but this was not budgeted for. It turns out my mum also won’t be able to send over gifts for the kids (or me) in the same way, so watch this space for the reign of terror which begins when I run out of marmite.
  • The kids’ schools are closed since Christmas and after a few weeks my son started to get neck pains. So whilst we had laptops from last time, my shopping-general budget took a hit to buy mice/keyboards/ whatnot to set him up, and a webcam for us both so we can use a proper monitor. I managed to find an old monitor and some bits and pieces, and we asked first on the local freebie marketplace, but still had to fork out.
  • There are still some things I haven’t budgeted for. Almost the entire ‘family’ spend this month was on helping out a very old friend. I can afford to do it, and he has done the same for me in the past, but it wasn’t anywhere on the list.
Item Monthly BudgetSpent Jan% of monthly budget
Childcare costs £         1,100.00 £             790.5472
Car (insurance, tax, petrol) £             125.00 £                99.5080
Charity £                66.67 £                25.6338
Eating out £             120.00 £             104.2287
Entertainment – subscription £                50.00 £                72.77146
Entertainment £             100.00 £             340.09340
Kids – extra curricular £             250.00 £                        –  0
Family £                50.00 £             170.39341
Groceries £             400.00 £             597.15149
Holidays  £             300.00 £                        –   
Insurance £             200.00 £             127.8764
Personal care £                30.00 £                47.02157
Shopping – general £                25.00 £             165.37661
Shopping – gifts incl birthdays £                58.33 £             167.97288
Shopping – clothes £                29.17 £                        –  0
Rent and Bills £         1,700.00 £         1,638.5796
Transport £                41.67 £                67.46162
TOTALS £   4,645.83 £   4,414.5595%
Enjoy the little things – like British TV? Photo by Brigitte Tohm on Unsplash

With that done, what did I save?

 Monthly PlanJanuary% of plan
Mortgage Capital  £                    865 £                    865100
Mortgage Overpayment  £                1,250 0
 Emergency Fund  £                    10015001500
ISA £                1,25050040
Kids savings £                    248248100
SIPP £                    300300100
  £   3,148.00 £   3,413.00108%

This went pretty much to plan. In January I had to move my house deposit over to Denmark and I lost some money in transaction and exchange rate costs. I also need to now boost my emergency fund as I’ve taken it down to £4,000 (or one month’s expenses). It’s definitely not enough in these uncertain times, so rather than focusing on my usual goals I need to spend a few months getting that back up to at least three months’ worth.

Overall I saved 44% of my income, and spent 56% which is a little better than planned.

Given the overspend in some areas, February should be a month of clawing back – though it does include half term holidays… Watch this space!

How did your January budget go? Feeling in good shape for the start of 2021? I’d love to hear from you!

PS – if you like British TV and don’t feel like your life has enough dystopian fear in then I highly recommend Years and Years (I am not paid for this – it’s just the best thing I’ve seen in a while. Terrifying).

Happy New Year #2. Budgets

In preparing for 2021 I spent some more time on my budgets. I’ve written about where I underestimated my 2020 budget before, and I have added in those changes – both the unknowns (utility bills) and the real underestimation (groceries). I also spent some time thinking about what matters to us as a family and where else we could make compromises.

This led me to some interesting conclusions. One of the things I love about the FIRE movement is that you tailor it exactly to you: your own wants and needs; what you find important now and in the future; and the options you see for your coming years. For me personally, I am always juggling compromises. If I want to work, I need to have childcare and the most likely thing is that I am going to pay for it. If I want to work in my chosen field then I have to travel, and have childcare which is available overnight and for days at a time. And so on and so forth. Setting budgets though helps me to think about those compromises and priorities, and how to get a balance that works for myself and my kids. I find it really empowering because it’s taking an intentional approach to money, and matching my actions to my aspirations.

Photo by Kelly Sikkema on Unsplash

So for 2021 these are the things I am not prepared to compropmise on:

  • Childcare. We have a nanny who has been with us since my youngest was 3. With the pandemic and lockdown, I haven’t been travelling and haven’t needed overnight care etc in the way I usually do. But I still need childcare and value the care and engagement we get from our nanny, so this won’t change even though with all the additional costs (health care, insurance, travel) it’s not cheap.
  • Kids’ clubs. I was quite shocked about how much these are in Copenhagen, and I’ve gone back and forth about the right balance. Since my kids are only young once and working means I don’t have time to e.g. take them swimming every week, I have decided to keep this in but limit it two two per child. This means they get to see friends, do sports (and lots and lots of dance…) and keep broad interests whilst ensuring I am not going crazy on this budget line.
  • Holidays: I’ve kept in a decent line for this in 2021, though I hope it will be less since we have some vouchers from holidays we couldn’t take due to COVID which have rolled over to this year (well, fingers crossed that this happens and we don’t roll them over whilst staying at home FOREVER).

So what is the budget? It’s very similar to 2020’s actuals – a budget of £ 4,645 per month or  £ 65,618 over the year. The breakdown is planned as below – this is an average over the year where some costs are annual, and some come out in specific months etc:

 Annual PlanMonthly Budget
Childcare costs £              13,200 £            1,100.00
Car (insurance, tax, petrol) £                1,500 £               125.00
Charity £                   800 £                 66.67
Eating out £                1,440 £               120.00
Entertainment – media £                   600 £                 50.00
Entertainment – going out £                1,200 £               100.00
Kids – extra curricular £                3,000 £               250.00
Family £                   600 £                 50.00
Groceries £                4,800 £               400.00
Holidays  £                3,600 £               300.00
Insurance £                2,400 £               200.00
Personal care £                   360 £                 30.00
Shopping – general £                   300 £                 25.00
Shopping – gifts incl birthdays £                   700 £                 58.33
Shopping – clothes £                   350 £                 29.17
Rent and Bills £              20,400 £            1,700.00
Transport £                   500 £                 41.67
TOTAL SPEND £         65,618 £       4,645.83

To be honest it still feels like a lot.

However, the planned savings (shown below) mean that it would be another year where I spend 60% and save 40%. Again, this doesn’t include anything pre-tax, so money paid for health insurance, or my employer pension to which I pay around £17,000 per year:

Photo by sydney Rae on Unsplash
 Annual PlanMonthly Budget
Mortgage £            10,310 £                    865
Mortgage Overpayment  £            15,200 £                1,250
 Emergency Fund  £               1,200 £                    100
ISA £            20,000 £                1,250
Kids’ savings £               2,976 £                    248
SIPP (private pension)  £               2,400 £                    300
 TOTAL SAVINGS £ 41,776 £    3,148

This would put me on track to finish paying off the mortgage on my UK home by the end of 2022, earlier than I had planned, and to max out my ISA as well as paying into kids’ savings and a personal pension. So even though the spending is quite high, I am definitely working toward my financial goals.

The one unknown is housing. We’ve been looking to buy a home here in Copenhagen which would suck in savings (though this would become equity) and reduce monthly outgoings. So far, we have put in an offer and lost out on one home and we have an offer under consideration this week (please cross your fingers for me!). If we can’t find something by about March I will look to rent, since we have to be out of this rented house by July.

Once the housing is exactly known I will tweak the budget. I do feel like we could save more, and will keep coming back to the budget throughout the year to see what else we can trim away. Either way, we’ll keep on enjoying the free pleasures in this life, and the knowledge that we are trying to live mindfully. What’s your plan for 2021 and how are you going to stick to it? Let me know!

A beautiful (free) day out walking in the snowy woods in what we hope will become our new neighbourhood ❤

Happy New Year #1. Intentions

Woohoo, it’s here! After 2020 lasting for what felt like 91 years, 2021 has rolled in.

Truthfully though, in reviewing my 2020 I feel extremely blessed by how much I managed to drive forward on most of my goals. I fully recognise and appreciate how much of this was down to luck – to being in a stable job, to having found FIRE and got myself set up with an emergency fund which took the edge of the panic, and to being in a country where the approach to managing COVID was fast and easily understood.

Photo by Annie Spratt on Unsplash

But I’m still excited about 2021 even though I absolutely hope that it is better for most people – and for humanity and for the planet. This is part one of two New Year blogs: this one covering intention setting, and the next one outlining specific FIRE goals for next year.

So where to start. A recent New York Times article suggested that people should aim small for 2021. Lots of commentators agrees that small is beautiful – in an interview with Glennon Doyle she talks about how small goals are easier to work toward, and easier to build into your life with grace ad confidence rather than creating new ways to beat yourself up about. Around 80% of people don’t stick to their New Year’s resolutions, so it’s clear that another approach is needed.

Focus on intentions before goals

So before getting to goals I want to focus on intentions. Goals are future focused, and brilliant for laying out a vision and planning how to get there. That’s a really important task, and with the small-and-kindly mantra above, it really works for me. But setting intentions are about mindfully living in the now. It’s the idea of setting out how you want to behave, to feel and to approach situations which you can come back to easily and often if you feel you’re veering away from your true north.

Photo by S O C I A L . C U T on Unsplash

Intentions are simpler to come up with than goals since they are a heartfelt statement about who is your authentic self. Who is the real and brightest version of you? How would you need to show up each and every time to be that wonderful true self? Intentions are ways of nudging yourself gently back into that space. The fact that this is the space from which you are more likely to be able to achieve your goals is also great news!

And as I’ve written about before, so much of the FIRE movement is about mindfulness and living with intention. By taking time to think about who you are and what you want, the decisions you make are part of actively engaging with every aspect of your life.

Intentions 2021

So, what are my intentions for this year? I have focused on areas where I feel that I don’t ‘live my truth’ – where I get narky, stubborn, or downright unhelpful. These are all things which make me feel worse too, and where I spend valuable time and energy stressing about how I should have done things better. I’ve written these all in the present tense so they are immediately real and actionable at any moment.

  1. I treat myself with compassion and forgiveness, gently recognising and letting go of any shame.
  2. I nourish myself and others, my community, and the planet, by proactively being an active participant.
  3. I value and am grateful for the past that got me here, but I know I don’t live there any more: I am free to move beyond my past, with love.
  4. I easily and graciously give and receive love.
  5. I take each situation and each day with openness, courage and kindness, and amplify others doing the same.
  6. I take time to be and express gratitude and to celebrate myself and others, remembering that ALL of this is a miracle.

So – what do you think, is it worth setting intentions? And if so, what are yours?