Interested in my new e-book?
PS! Since you’re a reader of this blog I’ll give you 60% off the price if you use this link:
Planning My Future
It’s almost July. The first half of 2020 is nearly done. Some days I just like to sit quiet in solitude to think. This is one of those days. I open up my text browser with a blank screen.
What I often think about is the future. I rarely think about the past, which I believe is a good thing. I always look forward. The drawback is that I’m not always that good to enjoy the present.
In 6 months we’re going to move into our new townhouse. We’re moving away from the city to a smaller suburb outside the capital. The house will be double of the size of what we have today.
This blog post will be my musings on the costs of our new life with a bigger house.
First of all which costs will increase?
Increased Expenses In 2021?
Our house today is valued at $520,000, while the newer one will cost $685,000. This will mean that my part of the mortgage will increase with aprox. $80,000. An extra $80,000 in mortgage with the current interest rate of 1,40% means an extra $1,120 per year in expenses.
We also have to buy new furnitures which obviously is not free. We’re looking into checking out Craiglist etc. to find good deals, so this will be one-time costs mostly.
The house is also bigger which means that electricity bill will increase. In 2019 I spent $755 on electricity. My main guess is that this cost will increase to $1,000. That’s an extra $245.
Shared costs will decrease with aprox. $90 per month due to a newer standard.
We’re also looking into buying an electric car. This will also be a one-time purchase ($10-$20K), but the car maintenance for an electric car is pretty cheap. My best guess is that having a car like that will increase my monthly costs with $100 per month = $1,200 per year.
Below you can see my total expenses for 2019:
For the first 6 months of this year I’ve spent aprox. $8,000. If this trend continues I’ll end up on $16K in total for the year.
Next year with the increased costs of a house and a car, I’m probably looking into spending an extra $2,475.
My costs will still be under $20K per year, which I think is pretty frugal.
Increased Income In 2021?
I’m starting a new 9-5 job in August. I’m looking into recieving $12,200 more per year from the new job compared to my current job.
So maybe the math won’t be the worst after all?
Projected increased expenses for 2021: +$2,475
Projected increased income for 2021: +$12,200
Sum: $9,725 more in 2021. That’s an increased cash flow of $810 per month.