Sunday, 18 January 2015

Expenses and Liabilities (Year 2014)

I have created detailed spreadsheets to gain awareness on my family expenses on healthcare, groceries, housing mortgage and retirement projection.

Our Expenses Commitment

1)    Our total insurance/annuities premiums for lifetime payable: $136,824
2)    Mortgage loan: Fully paid before 40 years old
3)    Yearly expenses: $43,800 - gradual increase of 3% per year till $60,000

Year 2014, we are leading a comfortable lifestyle with expenditures of about:
1)  $24k (My wife)
2)  $17k (Frugal Daddy)

We planned to increase these amount by 3% each year for inflation, capped at $30k each. We will only review this plan if consumable cost goes up very significantly in future. 

Why $30k, you might be asking?

1.    This is a budget based on our needs and wants. When you are getting more efficient and resourceful, you actually need less to lead the same lifestyle. 

2.    We will have less commitment in later stages:
  • less or no more insurance/annuity premiums to service
  • no income tax to pay when semi or retired
  • less dependent's expenses when my child grown up
3.    My major healthcare cost are covered by company insurance and personal insurance. Way to reduce medical cost is to choose the public healthcare providers over privates'. I will be sharing more on my insurance coverage in future posts.

4.    My HDB flat mortgage loan should be fully paid by 40 years old.

We do set aside $4,000 each, for travelling once or twice a year. I will be sharing why this budget is important to us and my travel experience in future posts.

With all planning, it is always good to be conservative.

I will review my expenses and share from time to time.

Keeping expenses low


  1. Hi Frugal Daddy,

    Hmm... $30k for a family of 3.

    I feel so guilty that the both of us are aiming for $40k. Definitely have to learn more about frugal tips from the both of you.

    Anyway, do you count the annuities as expenses? And how many years to go for the payments?

  2. Hi SK

    $30k is the budget for my wife or I. So it is $60k cap in total for my whole family. Currently, our expenses should be around $35k excluding mortgage. My budget include annuities and everything payable by cash. As I pay my mortgage via cpf, it is not included.

    I have been looking at your expenses records. Yours are great balance too. 40k for 2 persons with mortgage, is similar to ours. :)

  3. The fact that you can have your mortgage paid off before you’re forty is a huge deal. I know my parents were still paying the last of their loan in their mid-50s. I also love the idea of having a travel budget – the best part of graduating college was having the money to see the world, and I never want to give that up.

    Naomi Cruz @ 4 Pillars