I am really glad I followed through and did exactly that. 5 months onwards, I finally have some results to show for it!
What's more - Hey, I'm in the Business Intelligence field.
This is only for a 5 month period (actually only till 29th May), so I'm really looking forward for the full year results!
*All figures excludes CPF, investment gains/losses (but includes dividends).
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Total Income VS Expenses
My 5 months cashflow statement is summarized by 2 simple graphics. The huge spike in February was of course due to my major mattress hoot.
Yes. I have only spent 16+% of my income so far!!! Sick!
Of course, this is largely bias due to the bonus income in March - That expense % will slowly increase for the rest of the year. There are also some other major expenses I am preparing for the 2nd half of the year (e.g. Vocation!).
I reckoned it'll be in the region of 20% to 25% by the end of the year.
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Recurring Income VS Recurring Expenses
- Income excludes 'one-time' items like lottery, CNY angbaos, SAF allowances, bank special promotions, etc.
- Expenses excludes 'one-time' major hoots
Again, this is largely bias due to the bonus income. If I normalize it, my expenses is around 20% of my monthly income.
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Expenses Breakdown
Food: Breakfast, Lunch, Dinner, Supper, Snack, Groceries
Entertainment: Toto, 4D, KTV, Video Games, Movies, Etc
Healthcare: Doctor, Dentist
Household: Household Items
Personal: Clothing, Personal Care Items
Social: Wedding, Social Functions
Travel: Public (e.g. EZ-Link Topup), Taxi
Treat: Non personal expenses
Utilities: Telephone, Internet
I was quite surprised when I first saw this breakdown. Nearly 50% of all my expenses are on food.
The absolute essentials, Food, Utilities and Travel expenses already make up 70% of all my expenses.
I don't spend a lot of food, that means I'm spending too little on entertainment and life. Life of otaku. :(
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Passive Income VS Active Income
The most important chart of them all, and the best measurement to my ultimate goal - financial independence.
My short-mid term goal is to have passive income form 10% of my overall income.
Since I spend around 20% of my income... If I can increase my passive income to 20% as well... does that mean.... !!!
...
Long way to go man. Long way to go.
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Miscellaneous
Some other interesting facts...
I spend $2.46 on Breakfast, $4.96 on Dinner, and $5.15 on Lunch on average.
The approximately cost per restaurant visit (includes low-end ones also) is $19.14.
I also spend approximately $8.6 per month on lottery. And no, I haven't won back any for the year. :(
I highly encourage people to take up this challenge of recording your expenses.
It's a huge pain at first, but it becomes habitual very fast.
And the insights you gain can be quite invaluable.
