2014 – Yearly Expenses

2014 was a good year – a very good year. Because I heard about Early Retirement for the first time. It completely changed my mind. Well, not completely – I was saving before and not spending too much. But now I have a goal, and want to quit work as soon as possible (although it is at least a few years away).

My grand plan is to reduce our expenses to 2.000 Euros per month and “earn” the same amount via dividends and option selling.

2012, 2013 and 2014 in comparison

I’m tracking my expenses (complete year) since 2012. I was doing it long before, but have some holes in between. But life changed quite a bit (marriage, kids), so since 2012 is fine.

  • 2012 – 42k
  • 2013 – 44k
  • 2014 – 33k

My biggest expense is housing (22 %), followed by pensions (19 %), children (14 %), groceries (12 %), car (6 %) and insurances (5 %).

As already stated, my ultimate goal is monthly expenses below 2.000 Euros. As a first step I aimed in 2014 to stay below 2.500 Euros. I achieved that in June, September, October and December. In December I even reached my ultimate goal (below 2k).

Goals for 2015

  • Yearly expenses below 30.000 Euros (means on average 2.500 Euros per month).
  • 6 months with expenses below 2.500 Euros.
  • 1 month with expenses below 2.000 Euros.

When I set these goals, I didn’t know I would reach the last one (1 month below 2k) already in December this year. I would count that as success for 2015 already. But nevertheless I will try to repeat it in 2015.

I have not thought about dividend goals, yet. This will likely come at a later date.