In January 2024, we took a significant step towards fulfilling a long-held dream: booking tickets for an overseas trip we've wanted to take for the past ten years. By embracing Financial Independence (FI) concepts, we're already making strides towards achieving this major life goal. Let's break down our finances for the month:
Income: $7553
Expenses: $8057 (including flights costing $3755)
The largest expense this month was undoubtedly our flights, but we view it as a worthwhile investment in the travel experience we've been dreaming of for nearly a decade.
Our lifestyle expenses totalled $2089 for January, marking a 35% reduction from the previous month. A significant portion of this category was attributed to clearing off our Afterpay balance, totalling $630.
We managed to further reduce our food and drink expenses by 10% compared to the previous month, demonstrating our commitment to staying on track financially.
However, our transportation costs nearly doubled due to (un)expected car rego fees days after booking our flights... gotta love it!
Numbers can only tell half the story. Incorporating FI concepts into our daily lives has had a profound impact:
We now enjoy weekly dinner dates, a luxury we could only afford monthly in the past, all while saving more money than ever before and maintaining a healthier diet.
This positive change is largely attributed to our weekly grocery shopping and meal prepping routine, which has drastically reduced our reliance on takeout and dining out for daily lunches.
Additionally, actively tracking our expenses has provided us with a clear understanding of our finances, motivating us to stay disciplined and focused on our goals.
Looking ahead to February, our goals are clear:
Have $5000 set aside specifically for our overseas trip.
Maintain or reduce our food and drink costs, although we must keep in mind potential expenses such as servicing our car, which may be higher than anticipated.
Current savings rate (excluding flights): 57%