Before the monthly expense updates begin…

This month I’m going to give a brief rundown of all my recurring expenses, these are things that work out to be the same every month due to direct debits. This will reduce the need to explain them every month going forward.

Regular Expenses

Expense Cost Comment

Mortgage

 

 

 

 

 

£647.58

 

 

 

 

 

I’ve been with the same bank since I bought the house in 2014. The mortgage has recently moved from a fixed rate to a tracker which worked out well with a reduction in interest payments. We are currently looking at locking in to a fixed interest rate for up to 5 years. I’m in no rush to pay down my mortgage because the returns on my investments are currently outweighing the interest rates that are paid on the mortgage. I’ll continue to reassess this on a yearly basis and if anything changes I’ll begin paying down the mortgage.

Gas/Electric

 

 

 

£53.00

 

 

 

Moved supplier in June 2016, saving around 20% per year. I immediately set up a direct debit of the amount saved on this per month to be sent to a savings account.

Water

 

 

 

£7.00

 

 

 

We try to keep this down to a minimum, As mentioned I spend such a lot of time away in hotels that the shower is not used excessively.  We have two water butts outside for watering the garden in the summer. As we start to grow more fruits and vegetables I may need to increase the external water storage capacity.

Sewerage

 

 

 

£7.28

 

 

 

We probably only use the washing machine and dishwasher twice per week. We cook a lot of our food in bulk which keeps the washing up to a minimum. In terms of clothes washing we end up with one load of whites (mostly my work shirts) every two weeks and a load of colors once per week.

Internet

 

 

 

 

£21.99

 

 

 

 

I guess in this day and age it’s almost seen as much as a necessity as telephones and TV. We recently moved supplier but had to move again soon after as the connection speed and service were unacceptable (f**k you Sky).

Council Tax

 

 

 

£139.00

 

 

 

Non-negotiable. This is only paid 10 months of the year so no payments are required in January or February. This money gets sent straight to the savings account.

House Insurance

 

£10.71

 

Non-negotiable. Protects our home against any unforeseen circumstances.

Contents Insurance

 

£9.15

 

Non-negotiable. Protects all of our belongings from burglary or accidental damage.

 

Whats Missing?

Other things which do not appear on this list that you might be wondering why;

  • Mobile/Cell Phone 

I do not own a personal phone, all of my personal calls and messages come through my work phone. Generally I use Whatsapp and Line for calls, video calls and messages to my nearest and dearest. I see no benefit to having a second phone for people I don’t want to talk to try to contact me.  

  • TV/Satellite/Cable 

We used to have Netflix but got rid of it around a year ago. Financially it was costing £6.99 per month but the other costs were significantly more including physically; lack of activity and mentally; watching brain numbing TV shows. We do have Amazon TV but we pay that yearly. We have it for the all around package including music, TV, online photo storage and next day delivery. Getting rid of Netflix didn’t make us any better off as the money is being donated to the RSPB my wife’s favourite charity.

  • Car Payments

I always pay for my cars straight out with cash, always second hand. I drive around 30000 miles per year so cars tend to last around three years before they give up or are sold on.

I receive from my employer a certain amount of cash per month to lease a car. We can choose to use all, some or none of this to get a lease car if I desire. Many of my colleagues use over the amount they receive monthly for a car they will never own.

  • Petrol/Gas

Tying in with the above, I benefit from a fuel card which is supplied by my company. All miles including personal miles are paid for with this. I pay financially for my personal miles through tax, although it does work out reasonably efficient for me monetarily.

  • Car Insurance

 Paid for yearly in full, it can be quite expensive as it includes business insurance and the fact that I may have been known to speed* on occasion.

  • Health Insurance

For all you readers from the USA, British healthcare is free (sort of) to all. We do pay for our medication and also for dental appointments but doctors visits and hospital appointments and operations are free.

This is paid for by a system call National Insurance; essentially there is a tax taken out of your wages on a weekly or monthly basis.   

  • Student Loans 

I have recently paid off my student loans. This wasn’t a set amount every month. In the UK it is worked out as a percentage of your monthly salary, get a bonus then pay more loan back. It’s nice not to see this on my pay slip every month.

*speeding or using your phone when driving is reckless and there simply is no good reason for doing either.  

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