Today I am going to tell you everything about my expenses during 2019.

In these turbulent times we are going through due to the Coronavirus, I have decided to post the analysis of where my money went last year.

If you follow my portfolio updates you will know that in 2019 I managed to save 61% of the money I earned.

I imagine that now you are wondering …. Wait, is it possible to save 60% of your income? I am here to tell you: yes, it is 🙂

Obviously not everyone can save such a big percentage of their income. It depends on several factors, one of the most important being the level of income you have.

It is not as easy to save when you earn € 3,000 a month as when your salary is € 1,000. Other factors that also influence are whether you live alone or with your partner, if you have children, among many other things.

However, it is true that many people would be able to save more if they took a look at where their money is going, and that´s what I am going to cover today.

The keys to accumulating wealth are saving and investing. I mainly invest in the stock market and p2p lending.

Now I am going to show you where that 39% of my income was spent in 2019, and if I could have saved a little bit more. Ready? Let’s go!

2019 expenses distribution

Distribution of my expenses during 2019

There you go. To be honest, it´s impressive how much information the above graph gives about my lifestyle.

Firstly, you can see that more than half of my money went to my rent. As you know I live in London, where renting an apartment costs a lot of money.

I live in a one-bedroom apartment. I could pay less if I lived in a shared house, but to me it is worth spending a little more on the independence and comfort that having my own house gives me.

The next expense are the bills: water, electricity, council tax, mobile phone, etc. The biggest contributor is the council tax.

It is a tax that everyone has to pay to live in UK. I could have put it in the rent, but I’ve decided to include it in the bills.

My spending on water, electricity and mobile phone has been very low, so I can’t cut anything here.

Then we have travelling, which represents 7% of my expenses in 2019. These were mainly trips with my girlfriend or to be with my family in Spain. Again, not possible to reduce here either!

Transport also accounted for 7%, and was mainly due to the monthly payment of the oyster card, which I need to go to work.

Health expenses are 7%, including physio sessions, dentist and the gym. All of them necessary. I believe that there is nothing more important than having good health, so here I do not want to reduce my spending.

Eating and drinking out have costed me 6% of my total spending. I always try to avoid expensive restaurants and I don’t consume much when I go out, so I believe that this year I have behaved well 🙂

Celebrations represent another 6%. What are celebrations? Weddings, birthdays, gifts and bachelor parties.

Last year I had two weddings, and consequently a lot of spending. I don´t really like the wedding business, because it forces you to spend a lot of money if you don’t want to miss an important day with family and friends.

I personally try to spend as little as possible on weddings.

Near the end we have food, which represented 3% of my expenses during 2019. I enjoy a lot eating, everyone tells me that I eat a lot! 🙂

In the supermarket I always try to buy cheap and take advantage of the offers (there are always many offers in UK supermarkets). 3% seems very little to me, so I’m happy!

Lastly we have other things with 3%. Here I include everything else, such as my donations to Acción contra el hambre (a charity that I strongly recommend), going to the cinema and blog expenses.

How to save more – Conclusions

The flood of information and data on investment flooded me

Reviewing all my expenses, I find it difficult to spot where I could have saved more.

Yes, I could reduce things like eating out, going to the cinema or traveling to see my family. But to be honest, it´s not worth stopping doing these things given the pleasure and satisfaction they bring me.

Of course, I always try to reduce its cost, to be able to do what I like and at the same time not spending much.

For me, that is the key to saving.

Avoid spending money on things that you don´t enjoy and reduce the cost of activities that you like to do, but that you can find somewhat cheaper.

More articles related to saving and investing

If you want to learn more about saving and investing, I recommend the following articles:

That’s all for today. What did you think of my expenses review in 2019? Are you missing something?

Let me know in the comments, and I’ll be happy to reply.

Categories: Portfolio Update

Gonzalo Candela

I believe that the stock market is the best way to make your money work for you. In my blog I explain how anyone can be the master of its financial fate and make money investing.


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