Skip to main content

What did I learn from analysing my expenditure after a year

In the following blog post, I share the results of two analysis. The first one is an analysis of my spendings by categories after a year, the second is analysis of what I want to achieve by category. The analysis contribute to my main aim which is to achieve financial independence. I am currently trying to pay a debt - 12K for a student loan.

To do the first analysis, I downloaded all the statements from my current account in an excel format. I assigned a category to each entry.

What are the results?
I  allocated 18% of my resources to my loan and the same amount to travel to France and have a couple of trip in the UK.
I spent more money on conspicuous consumption than food.
I did not have many outings that involved financial expenditure.

What am I missing?
I haven't got a good idea of what all the cash I have taken out was used for. A part of it must be to commute to work, then it is a mix of food shopping, outings, shopping and more outings.

For the second analyysis, I made a rough estimate all the things you want to achieve in the future, I created a budget to understand how much you have to put on a side every month to reach every goals you have set yourself using the categories set in the first analysis.

 What did I learn from the analysis.
My main learning points are:
  • It seems that my current dreams amount to 12K - the same amount I need to reimburse (£12 000). (voice..argh). It is probably an amount of money that I should always have aside when I want to be completely free to reach any goal quickly. A FREEDOM POT
  • The other learning is that I really enjoy travelling and it is something I want to do more. It informs me in some ways on what I should do maybe professionally, who knows.
  • I can also see in comparison to my past that I want to focus more of my attention on personal development. It is something which is positive and I can predict that it is something that is likely to expand with time.
  • I will have to reschedule some plans in order to actually repay my loan quickly. Key tasks: what are my priorities.

Using my results, it allowed me to plan my budget for the upcoming months using a spreadsheet






Having this, I was able to actually analyse the information and develop some categories that you can actually see in the graph below.


 Actions plan
So through my analysis, there are a number of key elements that I should look further on:
- what do I spend my cash on
- creating a freedom pot could be a new priority
- can i align my thirst for travelling with my professional aspirations
- what am i ready to reschedule to actually pay my loan very quickly.



Labels:

Comments

Post a Comment

Popular posts from this blog

Keynes vs Minsky

I am a beginner in economics but reading Positive Money book 'Modernising Money' by Ben Dyson and Andrew Jackson. My interest grew in the work of Minsky and encouraged me to read more about Keynes. Keynes economics promote the view that in the long run economics system converge into an equilibrium with the support of the government. Nevertheless you cannot help the role of banks in the system and wonder after reading the following quote: “But this long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is long past the ocean is flat again.”   (Keynes, 1923) This imply that economists did not comprehend why we had a financial crisis and collapse.  Minsky with  his model 'Financial Instability Hypothesis' strive to answer this question.  The idea in Minsky's work in a 'simplistic summary is that in very
Post a Comment
Read more

Leicester Stories: What conversations and discussions did you have with people living and working in Leicester?

Dr Rob Watson interviewed me as part of Leicester Stories series #BuildBackBetter in July 2021.  Prior to the interview, he sent me few questions for me to prepare the interview and start thinking about what it means to Build Back Better post-pandemic. In the following post, I answer one of the questions augmented after reflecting upon the interview R: I’d like to know what conversations and discussions people living and working in Leicester had during the lockdown, especially when these conversations started to focus on the idea of Building Back Better? Through the lockdown, my discussion were upon the tools available to people to support their mental health and connections with others. In a trauma-informed programme, the first steps are stabilisation and regulation. In other words, if someone is in a state of shock, the first step is to ground them and help them manage their emotions. In our community, we experienced first hand what it is to be in a state of shock during the pandemic
Post a Comment
Read more

First kiss

When did you first fell in love? What happened? My first love was Jeremy a sweet love until we were shamed in front of the whole class for inappropriate behaviour. We kissed
Post a Comment
Read more