As I have noted in the past, my wife and I are going a bit crazy tracking every single dollar that we spend. The reason that we are doing this is so that we can enter into our new mortgage with heaps of confidence that we will be able to pay it back quite quickly and without having to struggle financially.
We have a general rule of thumb that we are trying to keep our total costs below $100 a day over the course of the month. We didn’t start off very well, but we have brought things back into line as you can see below:
- May – $118.96 per day
- June – $98.83 per day
The problem is that July is going to be a monster. There is just no way we can even come close to our goal and the reason for that is because it’s bill month. What does that mean? Well, i’ll show you:
- Private Health Care – $3,000 (per year)
- Car Insurance – $630
- Council Rates – $350
- Business Tax – $150 (This is going to be substantially more next quarter after I lodge my latest income statement).
In total those bills alone add up to $4,130 ($133.25 per day) and it doesn’t include the phone bill, the internet bill, our groceries or any of the other items that we need to pay for this month.
So as you can see, July is pretty much boned in regards to hitting the $100 per day target. Instead I think we will try for $200 a day, and even that I think will be difficult to achieve based on previous months.
Private Health Insurance Cost
You are probably wondering why on earth I would pay $3,000+ for private health insurance, and honestly, I don’t want to. But in Australia the government taxes people up to 1.5% of their total income if they don’t have private health cover to help pay for the public system.
On top of that, once you turn 30 every year you don’t have private health cover you get hit with a life time health cover fee of 2% year on year every year you aren’t covered. They pretty much have you over a barrel – hence my general fuck the Australian government attitude on this blog.
So the way I see it, I could either use the public system and save a small amount of money in the short term, or I can just pay the bill and suck it up. At least I get to pick and choose my doctor. Plus by paying the bill yearly rather than monthly, we are saving about 5% on the total cost.
How are you going with your budget?