My spendings from January to July 2018 will be analyzed. The aim here is to derive the savings rate and to show the distribution of expenditure. Furthermore, savings potentials and pointless expenditures are to be uncovered.

It’s not about the budget yet, but about monthly expenses – about accounting. To get a better picture, I took the last 7 months (January to July 2018) apart and analyzed the spendings. The aim is to determine the savings rate and to visualize the expenditure in order to identify potential savings or pointless expenditure. The budget can then also be created from this.

It is not a question of sweeping every centime, but of getting a reasonably meaningful picture. Therefore I have made the following classification including the percentage shares.

Spendings Percentage
Housing costs
Rent, mortgage downpayment, mortgage interest 76%
Ancillary costs and house insurances 23%
Maintenance costs, renovations, furniture and household appliances 1%
Total housing costs 100%
Private expenses
Health insurances 17%
Doctor’s fees, medication 16%
Body care, haircut 1%
Food 12%
Transport costs (car expenses, public transport) 16%
Clothing 0%
Television, radio, Internet, telephony 5%
Holiday and holiday insurance 3%
Restaurant and going out 8%
Sports and leisure 2%
Education and office supplies 7%
Other expenses 13%
Total private expenses 100%
Earnings Percentage
Salary 100%
Other income 0%

Short analysis: A first glance shows quite high costs concerning the doctor’s costs. This is exceptional this year due to health issues – these costs will come down in the future. I also see the potential for savings in transport costs.

Now let’s get this into the structure to derive the savings rate:

% of GI % of NIATH
Gross income (GI) 100%
Social security 12%
Net income (NI) 88%
Health insurance 2%
Tax 30%
Net income after tax and health insurance (NIATH) 56% 100%
Rental (or Mortgage interest rate, monthly downpayment) 8% 14%
Net income after tax, health insurance and rental (NIATHR) 48% 86%
All other spendings 14% 26%
Savings (Savings rate) 33% 60%

Conclusion: The NIATH savings rate is 60%. Compared to the objectives, the savings rate is 10% above the target for the first 7 months of 2018. Even though the health costs are exceptionally high this year, the savings rate is more than met. I am still trying to optimize transport costs for the future. So far, the income from trading transactions has not been included. The reason for this is that trading revenues should be added to the savings rate and not lead to more spendings.