Playing With Numbers

This is a blog post about my budget.

I even thought that I would name this “My budged,” but then I realized how dry and boring it sounds, so I took a more gentle approach what comes to the title.

Before you can have any kind of idea of how much you can save on the theory level, you need to know your expenses.

So I sat down with my mobile internet bank and combed all the monthly expenses I can’t avoid: phone bill, accountant, social security payment, and so on. At the same time, I created on my note app weekly list where I can see what week I will get charged.

Spain is one of those countries where companies have zero trust, and all the payments go automatically from your bank account, and there are no paper invoices of any kind. Handy & scary at the same time, you just have to have money all the time at your account.

So I worked with my expenses, I got my magical number, and it’s 490.67 € per month. All of those are non-negotiable expenses that I’m not able to avoid.

I mentioned in my earlier post that I put some money on our savings accounts and that something is 400€ per month.

To my new savings account (The one I tried to open with no success), I will transfer 833.33 € every month for the next 12 months.

After all of these numbers, I will have 276€ on my account, and I will have to pay for food and whatever entertainment (read escape) or clothes/dog food/something else essential I might need. And quarterly taxes, of course.

That is a tight number, but we have agreed that the 400€ for savings account will be my play money if something happens. So If I don’t have enough money for taxes or if we need to buy something new (it will happen already next week), It will be with this money, and our two savings accounts will play the general safety net for the following year.

So why do we have two savings accounts? The first one, “Ahorro,” or just savings account, is where we transfer all Airbnb apartment incomes, and it also pays all the expenses that we happen to be attached to it. Monthly apartment upkeeping fee (There are pool and garden, not the cheapest one out there), taxes, new furniture, renovations, and so on. Also, 50% of my 400€ goes to this account. This account has a 3000€ cap, and if we have more money than that (Never happened), it will be sent automatically to the other account.

This other account is called the “Super Ahorro” or super savings account. 50% of my savings go here, and the point of this account is actually to save money, and we can use this only for bigger things like buying a car, house or apartment, emergencies, and so on.

So this is how I roll the next 12 months.

I will try to have extremely low buy month since I after couple (too expensive) holidays, new couch & Black Friday, and financing some things for our Airbnb, my account is empty.

So I need to stack some dough; let’s see if I have burned my allowance during the next four weeks or not. I hope not, and I will update you on that.