Been tracking my expenses studiously for the past few years. With a kid and inflation, they have been creeping up and amount to about $5k in total, or $60k per year.
Of the $60k, mortgage takes up about $14k and income tax about 12k per annum. That’s almost 45% of my annual expenses. When I pay up my mortgage in end 2023, that will naturally go away from my list of recurring expenses. Same for income tax when I am not actively employed (RE?).
The $34k balance or $2800 monthly expense comprises mainly of the following:
- Car running expense – $8k (I paid in full for the car so no car loan.)
- Child care – $5k (share 50/50 with spouse)
- Helper – $6k (share 50/50 with spouse; excluding living in expense.)
- Utilities/conservancy – $800 (share 50/50 with spouse)
- Mobile – $500 (including parent home line)
- Internet/netflix – $400 (share 50/50 with spouse)
- Meal/groceries – $14k (including kid’s formula)
My passive income of $45k is already above my core living expenses listed above.
My goal is to further increase this to $60k so I can truly be FI.