Thursday, November 1, 2012

Family budget comparison 2008 – 2012 ..after the relocation.

We had to move last year and relocated to a more expensive area.  Evidently we spent $ 16K more.

As new place of residence  and more expensive area,  I averaged our three previous 3 years of expenses, when we lived in the same environment.  

Non-inflation adjusted table:
Family budget 2012 comparison -

-         I was hoping that medical insurance coverage is going to be free, with the new job. However its terms and conditions were changed and I have to pay out of pocket 10% of all the bills even if the insurance is given for free by the employer (effectively it's not any longer).
-         The child went to school, so it became  much cheaper for the time being.  The school is free.
-         We have realized that the area is much more expensive and manage to restrict ourselves on new clothes but this is only temporary and hardly sustainable in the long run.
-         We treated ourselves with a vacation to an exotic destination. It  was relatively expensive in comparison with the previous year, although the airline tickets were 50% discount ( I used my air miles) .
-         Pure car insurance alone cost us about $1,600 but there has been some additional fees – car service, renewing driving licenses and insurance for the next year.  A comparable price (apples to apples) would be $2,200. Nevertheless  it is still higher than average $1,488 over the last three years.

The life style is not changed that dramatically – the house is about the same size, schools an areas are quite the same.  On their hand it was not a question of choice, we just followed the jobs, as the salary has not changed much.

This is the same information presented, per category:

Family budget consumption categories (2007-2011 vs. 2011-2012), as percentage of total: 

If you will pay closer look, it could be noticed even percentage wise our consumption categories are changed. We are paying much higher price to maintain the same life style -  house, car,  food. This is not taking into account that the overall bill is much higher.
In the three previous year about 60% or $ 40K were essentials (home, bills, nursery, car, food) , last year  it was 75% or $ 60 K and hardly anything could be done about it.
One of the possible solutions is to take on more work, I managed to get three additional working days. This time cover the coming cold winter gas & electricity bills. 


  1. House rent and bills shot up like crazy! New to the site so what was the reason to move for jobs if the salary stayed the same?

    1. Hi Thomas,
      Thank you for stopping by. The only reason is to stay employed, really. Dual income provides some additional security. I hope that we still look at this like an adventure, while doing what we like.