The months we broke our budget- Expense report October, November 2017

We have been quite good at keeping within or budgets for quite few months prior to this but the Months of October and November saw us zooming past the budget. Thankfully we did not reach the heights of expenses as last year. Let’s dive into what changed in last two months

Clothes: I finally broke down and bought myself some clothes. As I have previously written about women’s jeans are the worst. They shred after few months of use and this time I finally decided to buy some good quality trousers which I am hoping will last me for years to come if I suddenly don’t gain a lot of weight. I also spend money on jeggings and leggings to make the other clothes I already had become wearable. That being said advent of new clothes has prompted me to purge a lot more clothes form my ever shrinking wardrobe.

Medical expenses: Last few months saw us spending a lot of money on medication and doctor visits. All of the people saying we don’t have a healthcare plan calm down. The healthcare expense is temporary and we do expect to see increased expenses in next few quarters as well. We are however trying to keep other costs down.

Eating out: we have spent a huge ton of money eating out in last two months partly because we were travelling to visit family and partly because work and general well being was too stressed leaving one or both of us exhausted. After almost 3 weeks we finally were able to prep and cook week long meals in mid-November.

We stopped publishing detailed list of expenses because it is a drag to write and I have rarely read through anyone’s expense report items. All I care about is broad heads and totals, which is what we share now on our site.

If you are interested in any particular expense or category let us know in the comments and we will detail that out for you.

The expense report is without rent and home loan EMI as that is separately accounted for in our overall yearly budget and savings. We live in perhaps one of the most expensive cities in the country which has a huge impact on our budget predominantly in eating out and doctor consultations. Our rent is also ~3 times more than the previous city.

Our aim in sharing the expense report is to hold ourselves responsible as well as show that even in a high cost of living area it is possible to reduce expenses.

Our expenses for October are as below:

Total expenses: 25884/-

Clothes- 4087/-

Medical expenses- 4147/-

Eating out- 4060/-

Other regular Household expense- 13590/-

Expenses for November

Total Expenses: 24890/-

Clothes: 1047/-

Medical expenses- 5204/-

Eating out- 6811/-

Other regular Household expense-11828

As you would see we have been spending quite a bit on eating out and that has been something that has been a worrying trend. We love food and once in a while it is a good break to sample other delicacies but of late we have been spending a considerable sum on eating out again. This expense if reduced to under 1000/- will help us keep our expenses way close to our actual budget. It would also offset the increased medical expenses and we will be eating healthier.

Since the medical expenses are going to be here for a while and we might need to buy few more clothes if necessary it is highly unlikely we will be able to meet our target of fewer than 14 k in expenses. Currently we are playing this by the ear but we are conscious of unnecessary expenses that have crept in and can be reduced.

We are currently aiming for 20K in monthly expenses recognizing current medical requirements. It will still take us a few months to know exactly how much we will rack up in upcoming months and if we need to make some long lasting changes to our budget. That is highly unlikely since we are very aware that people live on far less than we currently do and there is no reason why we should nto be able to make do on current expenses.

December is here and as the end of year comes we are looking at a hike in income. In past few years we have seen steep increase in income; we are by no means high earners but our income certainly allows us to save a decent sum. A decent hike of over 10% would set us up for at least 10% increase in our monthly savings if not more.

Past few months, life has won the fight between low expenses and comfortable expenses. With one of us recovering we should be set for a better looking balance sheet soon.

9 thoughts on “The months we broke our budget- Expense report October, November 2017

  1. I recently discovered this blog – you guys are giving me excellent tips on my major life goals. Keep posting, and all the best!

  2. Do you use the Monthly Budget template from Google Sheets or some other app to track the monthly expenses – planned vs actual? Is there an excel template that you are willing to share?

    1. We use a simple google sheet and realized that is the easiest way to count our expenses. I did use andromoney (android app) for a brief time when we just started. I would have no problem sharing excel template but we simply have none.

  3. We’re thinking of retiring early too in much the same format – we came to the same feelings and so it is really nice to read all your thoughts and advice on here. This is soooooo validating the the thought that we don’t have to be hamsters on the corporate jobs wheel till we’re old. Thanks for posting and keep the tips / goals coming – we are with you!

  4. Hello, I’m a journalist with TOI and wanted to speak to you for an interview. What is the best way to reach you? Thanks.

    1. Hi Sonam,
      I am sorry we have been really preoccupied with my pregnancy and our daughter and put the blog on a hiatus. Let us know if you still need to talk to us.

  5. Woww.. Love your posts. I am an Independent Financial Planner, would share your posts to my clients. It’s the most real Indian post I could find on retiring early. Super great job!

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