Today I was comparing the yearly expenses of 2023 and 2024 and saw that the expenses have increased by around 10%. But the good thing is I have increased the investment too in this period. I track all my expenses as well as investment together.
And I saw that the total money I spent in 2024 is up by 10% which I spent on 2023. Now that means 10% is overall increasd which includes Expenses as well as Investment. When I compared the investment, it has increased by 7% so thar means the expenses has increased by more than 10%.
One of the factor is that, my Kid has started going to the School rather than the pre school and that's why there is significant increase in Schooll fees. Along with that there is 5% increase in rent. And with inflation kicking in, 10% increase is somewhat ok. In the dame period the income has increased by only 7%. So that means I am negative by 3%.
So if my income increases by 7% in the year, so my expenses should not increase by more than 7%. And the investment should increase as much as possible. One think I liked is that in 2023 I have invested around 24% of my yearly income whereas in 2024 it is around 31% which is quite good. Investing above 30% is quite good but I would like to increase to 35% in this year and eventually moved to 50% in coming years.
Investing 50% would have been ideal for the financial freedom, so I am targeting 50% gradually. Along with that I also have done first international travel in 2024 which is an additional increased in the expenses. Hopefully I will do the international trip with family every year and the expense will be same.
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