You Need a Budget – How to Budget

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Everybody manages its budget in its own way. There is no one single way of doing it. But, everybody needs a budget. This is very important. There are many reasons why it is important. You need to know how much you are spending and how much you still have at the end of the month. Seeing your entire monthly budget will help you a lot to manage your spending.

In this post, I am going to go over the reasons why you need a budget. I am also going to talk about the way I am managing my own. It is only one of them, but if it works for me, it may work for you!

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How to Account for Life Insurance in Your Net Worth

Categories Budget, Investing, Retirement7 Comments on How to Account for Life Insurance in Your Net Worth

Many people have life insurance. One of the best reasons for life insurance is if people are depending on your income. If you pass away or are unable to generate that income, the life insurance can come into play to help the people that are dependent on you. This will not last for life but can be of great help.

In most case, it is very difficult to account for your life insurance in your net worth. Indeed, unless you die, you will not get any money from the insurance. So it does not make sense to account for it as a value in your net worth. But there are different kinds of life insurance. In Switzerland, we have some special kind of life insurance that is linked to retirement. If you do not have any issue before retirement, you will get back most of the money. Therefore, it makes sense to account for this kind of life insurance in your net worth.

So, let’s see how to account for it!

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February 2018 Update – Vacation and wedding

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Update: I changed the way I am accounting for my life insurance, this gives me a savings rate of 4.2% now. It is still a very bad month.

February is now done, it is time for another monthly update! This was not a good month at all for the financial side. But we had a lot of fun in China. And I was happy to see my fiancee again!

I have not posted on this blog since the last update, I was on vacation in China for more than half the month. I hope to post more in March.

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January 2018 Update – Ph.D. and good savings

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Edit: I changed the way I am accounting for my life insurance, this gives me a savings rate of 33.7% now.

It is time for another monthly update! After a good December 2017, the new year is up to a great start in January 2018 with yet another very good month :) I am really starting to get a hold of my finances.

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Goals for 2018 – Reaching for FI

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For the first year in my life, I am gonna try to set clear goals for this year! I have set up a nice spreadsheet for my goals for this year (credits to retirebyforty for the spreadsheets idea):

My 2018 Goals

I have tried to not set goals that are too high but still strive for better than this year. Since it is the first year I am setting goals like this, I do not want to be over-optimistic. This is my first attempt at setting yearly goals, so maybe I will add new goals during the year, but I will not remove any goal nor downsize any goal.

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December 2017 Update + 2018 perspectives

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Happy new year to you all! Now that we started in 2018, it is time for the last monthly update of 2017. After a rather poor November 2017, December 2017 is significantly better. I have been able to keep my spendings lower than usual. It was not a very eventful month. Except of course for the usual Christmas celebrations. I always spend Christmas with my family and it was great :)

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November 2017 Update

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November 2017 is over, it is time for another monthly update. After a bad October 2017, I have seen some improvements.

November 2017 was not bad in terms of savings, but it was a bit lower than I was expecting. The savings rate for the month is 14.25%. It is not perfect, but still better than last month. My goal is to go to 25%. But I probably will need a salary raise to go there (I am still gonna try without the raise).

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Save Money on Rent by Asking for a Reduction!

Categories Budget, Frugality5 Comments on Save Money on Rent by Asking for a Reduction!

Sometimes, saving some money simply means asking for a reduction! I have asked for a reduction in my rent. And with this, I am going to save more than 50 CHF every month!

I just got confirmation from my building manager that they accepted the reduction of rent that I asked for. I am quite satisfied with the answer. However, they have been incredibly slow in answering me. They answered more than two months after my request… In Switzerland, most building managers are getting worse and worse.

With this reduction, my base rent goes from 1175 CHF to 1122 CHF. This will only start at the next term of my lease, on April 1st. But this means that next year, I will save 53 CHF * 9 = 477 CHF. And I will save even more the following year since all months will be lower :)

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How to save money by changing car insurance

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I decided to check all my recurring expenses and see if I could save something on at least some of them. Turns out I can! I was able to change my car insurance to save over 350 CHF per year on it.

It is very important to regularly check if there are better deals on your insurance. Even though an insurance could be the cheapest at some point, it may not be the case a few years later.

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