While my monthly expenditure hasn't gone up significantly over the last few months, despite the usual increasing in cost of living that's afflicting everyone, I am beginning to think that my expenditure is just TOO MUCH!
Here is my latest breakdown...
Total expenditure is around £1700 a month, that's AFTER I've added on the amount I get back from my rental income, don't ask me WHY I do it this way, I just do!
The Largest Expenditure Item.... That Damned Mortgage...
OK I know owning a house in the UK is 'golden' but that mortgage is beginning to feel like a weight around my neck - the rental income doesn't cover the mortgage (albeit on rapido-payment mode) and then once I add on taxes it's even worse....
I'm deliberating whether I should sell the house or not, for now it's a no, but it's on the cards for the end of next year when my cheap mortgage rate runs out!
But we will see.... It's really just a matter of whether I want to free up some capital NOW to renovate my places in Portugal or whether I can wait... I think WAITING and doing what I can for cheap is the way to go, I'd rather hold onto the house!
I can sell it anytime, after all, and later is better than earlier if I need to.
Tax
Pain the arse... and of course having the mortgage which requires rental income which ends u[ being taxed just adds onto this, about another 20% to my tax burden overall. Sucks.
Insurances
Then there's buildings and Landlord's insurance for renting out the house, I've already decided to cancel my Life Assurance, waste of money the further towards the end it gets!
Rent in Portugal...
I COULD I guess lower my costs by moving into the house I just bought - but that requires a ROOF which I'm waiting on AND A BATHROOM....
I should aim to do this by the end of next year at the latest.
Car, food and bills in Portugal
TBH I don't find any of these particularly bad - for what I get for the money these all feel pretty basically OK!
It's maybe a sign that I'm quite well off that these having increased in price aren't going to break the bank on their own!
Other Expenditures...
There's not much to say about these, I include 40 EU as 'land basics' as there is ALWAYS something I need to spend money on no matter how TIGHT I'm being!
And besides this it's just work related expenses (the SEO might have to go, it's done its thing for a year, maybe that's enough!) and entertainments, which will always cost something!
Final thoughts...
Having spent most of my spare cash on the house, things are feeling a little tight ATM, especially with my lean summer coming up and a crypto-bear market in play.
It's time to hunker down for summer and to try and spend as little as possible - thankfully it's too hot to do anything for most of July and August so that's a start!