This month was a very tough one financially. I had to take out all the cash I had left to pay for the last bills of the apartment, which was not enough, but more about that later. Luckily, these are the last main expenses for the apartment. I even got the excellent news someone has already rent it out, starting in September, for €1250. Besides the finalization of my apartment, this month is notable for another reason. It’s my last month as an employee!
As a result, for the last time, my income streams are:
- Salary (with on-call)
- Child allowance
- My wife’s share of the expenses
July Income — €3,712.56
For my last salary, there isn’t anything special. I received on-call, that’s it. My net income for July was €3,388.85.
Next up, child allowance: €169.79.
Per child, you receive government support through what’s called ‘kindergeld’ or child allowance.
They set this per child instead of going up for each child, like in the past.
It can increase depending on specific criteria, such as single-parent or special needs.
Unlike last month my wife transferred her part of the shared expenses, increasing my “income” by a couple of hundred euros. She also “refunded” some expenses, but I kept those in their respective categories as income.
Not included: Dividends
I didn’t receive any dividends in April.
July Expenses — €11,777.03
This must be one of the worst months in terms of savings ever. Well, at least in the narrow meaning of the word. Most of my expenses were done for my apartment which is finally ready to be rented out.
I knew this day was coming, but exhibiting it now so up and exposed, makes it palpable from the deepest fibers of my being. Anyhow, enough dramatic build up, time for the cold hard numbers.
Investment Apartment — 10,133.59
As my previous Savings Rate report predicted, this category took the forefront. I finally did the temporary delivery (but it’s not that temporary). I’m delighted with the result, notwithstanding its heavy price tag.
The biggest bill was the fit and finish, i.e., the extras for the kitchen and bathroom. At a whopping 7560, this really ate into my remaining savings. On top of this hefty invoice, I also had to buy more than €2139.93 worth of furniture as it’s for rent as a furnished apartment.
Basic electronics such as a washing machine, dryer, and boiler cost me another €640.13 this month.
Wrapping up this crazy expensive category are my monthly mortgage interest (€351.61) and Principal payment (not incl. but €952.15).
Luxury — €375.23
Since I had to spend most of my cash on my apartment, other categories remained subdued because I paid attention to how much I had left.
That said, we had planned a trip to Luxembourg, and within that context, we spent €378.74 on hotel and food.
Other luxuries are my subscriptions to Spotify, Netflix, and Amex, a refund of Amazon Prime (totaling +€18.50 thanks to the refund), and a movie in the Microsoft Store (€14.99).
Food & Supplies — €346.88
Thanks to strict budgeting of our groceries which meant less meat and branded goods, we could limit the groceries to our meal vouchers and only a small extra of €134.64.
Restaurants were higher (€177.16) due to our trip to Luxembourg and sushi takeout. I never really regret this as eating out or ordering sushi is a conscious choice for my wife and me to treat ourselves at least once a month.
Finally, my snack habit didn’t get the better of me this month, resulting in a respectable -for me at least 😉 – €29.18.
Kids — €149.96
One word: clothes. Our baby girl g,rows like a mushroom so we have to get new (secondhand!) clothes every month or so.
Person — €138.01
Our trip to Luxembourg, which is the reason for some of the other expenses, was supposed to be the highlight of our summer as I was on the precipice of switching to freelance, and my wife was searching for a new job. Boy, did fate have something else in mind.
We ended up getting COVID! Hence why the ‘Person‘ category is above €100. Covid self-tests and going to the pharmacy added to our medical bill.
- Business – €53.28:
- Even though I didn’t plan to use my personal accounts anymore, I spent €53.28 on drinks in my office space.
- Transportation – €41.50:
- Public transport – €37.90: Quite a bit on public transport because I don’t have a card anymore and I only go to the office twice or thrice a month. I’m also leaving in this month, so getting a card is pointless.
- Other – €3.60: Public parking
- Banking and insurance – +€13.81
- Lots of cashback due to buying plane tickets for a holiday in November to Barcelona minus sixty cents for an instant payment to a late invoice.
- Personal home – +5.69
- Refund from the Telenet store due to a delayed switch of my subscription.
All the expenses
July was an eventful month with one very large expense resulting in a completely negative Savings Rate.
To summarize July: An income of €3,712.56 and a whopping expense of €12,729.18 provided me with a negative Savings Rate of €3,712.56/€12.729.18 = -217%.