Retro: 2005 Expense Review Part 1

In the last post I reviewed all of our income for the previous year and discovered some fun surprises.  For instance, I expected our new full-time jobs to be the bulk of all our income for the year.  And while it was the largest chunk of income, it amounted to a smaller percentage than I anticipated.  I was surprised to see that 35% of our income came from other sources! Hopefully that can continue into the next year.

As we make the shift into expenses for this post, let me give a quick preview by saying there are some surprises here too.  In fact, the biggest surprise to me was that we spent WAY more than I ever expected!  It was an expensive year!  But what can you expect?  I bought a vehicle this year, bought an engagement ring, moved to another city and state, bought a duplex property, had to furnish an apartment, buy lots of tools, and more.  It all adds up.

It was an expensive year!

In total, it appears we spent $130,624 for the year.  Whoa…  Ridiculous, right?  That’s what I thought!  We only made an income of $76,916 for the year.  So that would put us at an immediate $53,708 deficit.  This is not the kind of financial start I would want in our first year.  There has to be an explanation here.  Well thankfully, there is.  Take look at the following chart to get started:

FI Champion's 2005 Expenses by Category

You can see the BIGGEST expense we had were car and property purchases.  Of the $130,624 in total expenses for the year, this alone represented 35.9% of it all, or just above one third.  That’s huge, considering there were only two things purchased here the entire year: one car and one duplex property.  The next largest were All Other Expenses at $36,739, Investments at $32,871, Taxes at $12,612, and Loan Principal Paydown at $1,520  I’m showing this because I’ve personally found it very helpful to see a top-level picture of…

Continue reading the “2005 Expense Review Part 1” post by clicking here.

 

Note From Author

The full “2005 Expense Review Part 1” post has been back-dated to 01/04/2006.  But it was originally published to the Financial Independence Champion (FIChampion.com) Blog on 06/26/2016.

Why Back-Date Posts?

I mentioned in my first post how this blog will be a little different than any other ones you may follow.  I still plan to talk about personal finance, rental property, travel, and the pursuit of financial independence.  But to give all these topics the right context and the full picture, I need to start at the beginning.  I need to fill in the details of life from 2005 until now.  I want you to see the successes, the struggles, and all the milestones we passed along the way.  Therefore most of the “new” content will be back-dated to their appropriate dates in 2005, 2006, and beyond — until we’re caught up!

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