For 2018, Oscar and I were able to save 56% of the annual net income after taxes and health insurance – this adds up for a total of 31% of the gross income.

First, we look at the numbers for 2018 – then we analyze the data and look at whether there is still room for improvement in 2019, despite the already achieved objective.

Spendings Percentage
Housing costs
Rent, mortgage downpayment, mortgage interest 61%
Ancillary costs and house insurances 39%
Maintenance costs, renovations, furniture and household appliances 0%
Total housing costs 100%
Private expenses
Health insurances 15%
Doctor’s fees, medication 17%
Body care, haircut 1%
Food 15%
Transport costs (car expenses, public transport) 16%
Clothing 0%
Television, Radio, Internet, Telephony 4%
Holiday and holiday insurance 2%
Restaurant and going out 8%
Sports and leisure 1%
Education and Books 10%
Other expenses 11%
Total private expenses 100%
Earnings Percentage
Salary 100%
Other income 0%

And the resulting 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) 10% 18%
Net income after tax, health insurance and rental (NIATHR) 46% 82%
All other spendings 14% 26%
Savings (Savings rate) 32% 56%

After reviewing the numbers, there are the following possibilities:

  • Television, radio, internet, telephony: Unfortunately, my mobile phone went broke and so I had to buy a new device – but no iPhone, a cheaper mobile phone directly from China. That is why in 2019 savings of about 30% should be possible in this sector.
  • Medical expenses, medication: Unfortunately, 2018 was not really a “healthy” year. That is why some costs have accumulated. However, we strongly assume that we can save at least 50% here for the coming 2019.
  • Restaurant and going out: Even more consciously and with more attentiveness to the matter to approach, then it works with enjoyment and less spending. The goal is at least 10%.
  • Transport costs (car, public transport): Plan a little more in advance, then there should also be some savings. The target is at least 10%.

Not a penny was spent on clothing in 2018 – this should remain the same in 2019, the wardrobe has to be worn down.

Other expenses

We also want to reduce other expenses in 2019. Included are things like gifts, bank fees, club dues, etc. There are still a few ways to save money.

Investment

Not as you think… as they say, education is the best investment. That is why we will take the expenses for further education apart. In 2018, a total of 10% of all spending was on education. The breakdown is as follows:

  • Books: 20%
  • Trading journals: 22%
  • Online Courses: 4%
  • Continuing trading education: 51%
  • Language learning: 3%

With the ideas I have in mind about continuing education for 2019, this position will probably be a little bigger in 2019.

Conclusion

The goal for 2018 could be reached regarding the savings rate. Nevertheless, there is further potential for 2019 to increase the savings rate and reinvest part of it in education. Also, the bookkeeping concerning expenditures led to the fact that I deal with the money automatically more consciously.