24th April, 2018
I have learned that people are very reluctant to talk about their finances... not me however. I love to talk about all aspects and be transparent about this topic. If we all discussed it openly amongst each other, we could share ideas, help each other learn and to be inspired to get somewhere in life without struggling and wondering how everybody else does it.
What do your household yearly bills and expenses add up to be each year? These are the expenses that you don’t pay every week or fortnight (each time you are paid) but all of the other costs.
Have you ever sat down, written a list and added up the amounts to see what they all total for the year?
I recommend you try this to shock yourself. I guarantee you it will total more than you think. See how much of your precious Income you practically give away to companies. This total can be as much as half of your annual income, if not more.
It's a great idea to list and total them to look at closely to find where you can cut back on any of these if possible and see the potential amount you could be putting towards paying off debt, saving or investing. How are you supposed to be in control of it if you don't know how much you actually spend?
Your list should include all expenses that are paid on a monthly, quarterly and yearly basis to find your total amount required for 1 year.
I have listed all of my yearly bills and expenses below for you to see. My total is a whopping $29,250 per year… and I’m frugal. It surprises me every time I go through my list to find the amount I pay each year as this total does not even include the expenses each pay cycle such as Mortgage, Petrol, groceries, spending and savings etc.
*My list does not include animal & vet costs as I don’t own a pet but this expense can be anywhere from an average $500 - $1000 per year for each pet and this does not even include any Vet costs.
*You may need to include other extras not on my list such as memberships and subscriptions like Netflix, Foxtel, Spotify, Gym, Magazines etc
Mobile Phone 12 x $90 $1080
Home Phone & Internet 12 x $80 $ 960
Internet security 1 x $120 $ 120
Water 4 x $250 $1000
Bottled Gas 1 x bottle, 1 x rental $ 100
Electricity 4 x $450 $1800
Shire Rates 4 x $390 $1560
Ambulance Membership $ 100
Health Insurance 12 x $30 (me) $ 360
Medical Extra (gap + kids medical) $ 800
Child’s Braces Loan 12 x $230 $2760
Car Loan 12 x $270 $3240
RACV Roadside assistance 1 x $120 $ 120
Car Registration 1 x $680 $ 680
Car Insurance 1 x $620 $ 620
Car Servicing + Extra 3 x $200 + $400 $1000
Home & Contents Insurance 1 x $680 $ 680
Wood (Heating) approx for season $ 900
School Fees (public, 3 kids) $2400
School Extras (uniforms, books for 3 kids) $1300
Dance Lessons, Costumes, (3 kids) $2000
Haircuts (personal grooming etc) $ 300
Birthday Presents (for family) $ 900
Christmas Presents (for family) $1200
Credit Card Annual Fee 1 x $150 $ 150
Club Jetstar Fee 1 x $50 $ 50
Short Flights (to visit friend) 2 x $100 $ 200
Websites 2 x $110 $ 220
Accounting (tax return) $ 150
Clothing (basics for family) $1500
Restaurants + Activities $1000
- What was your total amount needed to pay all bills and expenses for 1 year?
- What percentage of your income goes towards paying these expenses?
- Did this total shock you and make you realise just how much you spend throughout the year?
- Can you cut back on any areas of your list to save any amount possible?
Feel free to leave a comment below to discuss with The Domestic Economy community.