To kick off the new year, I undertook the task of reviewing ALL our income and expenses from the past year. The Income Review was posted first and fit nicely into a single post. The Expense Review however, was getting too large and needed to be split into two posts. Part 1 of the Expense Review was posted a few days ago where I began looking at all our top-level categories of expenses.
I rolled up all our expenses into five categories: (1) Car & Property Purchases, (2) Investments, (3) Taxes, (4) Loan Principal Paydown, and (5) All Other Expenses. It was very eye-opening to see how much we spent overall. But it was very helpful to see that breakdown by category in order to get a clearer picture on our spending.
In this Part 2 of the Expense Review, I want to dive deeper into some of those categories. I want to open them up and share the specific dollar amounts of what was spent. Everything was tracked throughout the year using Microsoft Money, so its all there, ready to be analyzed. I just needed to export it.
I won’t claim that 2005 was a perfect year. Quite the contrary. As I look at the numbers, my fiance and I are finding quite a few areas that for change in 2006. That’s what makes this exercise so valuable. The insights gained will help us to improve for the future. And we intend to learn from it and make those kinds of improvements!
Top 10 Expenses in 2005
Let’s put aside our savings and investments for just a moment. We’ll talk about that category in more detail later. For now, I want to focus on all those other things that took money away from us. Our Top 10 Expenses in 2005 were as follows:
My initial impressions? Here we go:
- We spent a lot on “one time” expenses
- Taxes were more than expected
- Utility bills were lower than expected and didn’t even show up in the Top 10 list
- We must drive around and eat out a lot!
My other initial impression is just how interesting it is to actually see this data. It’s one thing to budget throughout the year and have a rough idea of…
Note From Author
The full “2005 Expense Review Part 2” post has been back-dated to 01/05/2006. But it was originally published to the Financial Independence Champion (FIChampion.com) Blog on 06/28/2016.
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!