Financial management is a significant aspect of anyone's life. Hence, an autobiography blog must track the financial facet of life. I have been thinking of starting a new label 'Finance' in this autobiography, and finally it is happening today.
Now coming to the first post under this label - it should capture my financial state as on today or maybe a trend of my finances over the years. But this is indeed a time consuming task, and that very reason has prevented me from opening this label until today. So, let me go ahead with agile/need based model on the starting of this new year.
2016 was interesting and I tried to capture most of my expenditures on monthly basis (unlike previous years where I only captured big expenses with any employer). So, at the end of the year, I had good amount of raw data for analysis. First I tried free mobile app or Ms-excel solution available in the market for doing the analysis. But none was suiting my purpose as I had some unique spending (I think) pattern. Then I decided to design my own Ms-excel sheet.
Choosing the categories:
The most difficult part was choosing the buckets/categories that would be useful and coerce me to improve my financial management. To start with, I have finalized the below categories for expenditure:
1) Housing includes rent, home's permanent infrastructure such as bed, table, fridge, cylinder(since twice a year for me), Kathmistri charges etc
2) Utilities includes electricity bill , Maa's mobile bills, my mobile bills even though I get reimbursed etc
3) Food includes sabji, grocery, milk, household stuffs such as soap,harpick, ordered food to be taken at home (maybe Pizza) and also food taken at office (assumed Rs 30 for 20 working days =600 per month)
4) Gift includes material/cash gift to family members or others which I could avoid, donation to non-profits, help provided to someone needy
5) Family includes money spent on home construction, buying essential commodities for family members such as medical insurances, medicines, travel tickets, infrastructure at Agia which I couldn't & shouldn't avoid as a responsible son/brother
6) Investment includes LIC premium, MF, Equity, PPF, APY, NPS, health insurance, other investment like rubber, but not including pf that got cut from salary
7) Recreation includes eating outside, watching movie, roaming inside NCR excluding transportation
8) Medical includes money spent on my (not family) diseases or medicines excluding health policy premium
9) Travel includes both commutation and lodging/fooding charges outside NCR of myself or me taking family members, including my Agia stay expenses
10) Personal includes money spent for my career development, cloth, books, initiatives(not nonprofits) etc
11) Transportation includes local conveyance charges such as metro card or Ola/Uber/Bus inside NCR
12) Loan includes cash or kind (eg- buy ticket) given to others with promise of repayment. For repayment within a month, there is no need to mention
13) Untracked includes money left after monthly cash-in-hand calculation at the end of each month.
Categories for earning:
1) Salary: Money deposited in my bank account (not in payslip, which means I don't track PF and TDS)
2) Equity: Money got transferred from Sharekhan to bank after booking any profit, not counting the dividends though
3) Bank interest: Money both ICICI and SBI give to me at the end of each financial quarters
4) Reimbursement: Money given from NeGD for Mobile bills and travel expenditures. Although both the items I write in expenses, I got back the money (more/less in case of travel expenses)
5) Maturity: Money credited to bank accounts on maturity of MF, FD or any policy etc
6) Loan repayment: Money returned by individuals against the loan taken from me
7) Others: Money got from other sources such as honorarium etc
So, here goes my expenditure and Earning tables, followed by a graphical representation of expenditure:
| Housing (rent, cylinder, infra items, except food) | Utilities (no gas, Maa's Rs 1000 pm included) | Food (sabji, household,Office Rs 600 pm included) | Gift (to family or others, Donation, Help) | Family (travel of family, medicines) | Investment (PPF, LIC, Rubber,share APY 630 pm included, no PF) | Recreation (restaurant, movie, inside Delhi only) | Medical (only mine, not health insurance) | Travel (Home stay expenses, airfare) | Personal (clothing, stuff, initiatives etc) | Transportation | Untracked expenses (water, minus office food) | Loan | Total | |
| Jan | ₹ 60,119 | ₹ 1,859 | ₹ 2,325 | ₹ 10,279 | ₹ 10,000 | ₹ 2,040 | ₹ 9,199 | ₹ 8,142 | ₹ 960 | |||||
| Feb | ₹ 14,000 | ₹ 1,827 | ₹ 1,720 | ₹ 1,050 | ₹ 10,595 | ₹ 48,550 | ₹ 2,645 | ₹ 7,260 | ₹ 200 | ₹ 3,307 | ₹ 91,154 | |||
| March | ₹ 14,000 | ₹ 2,350 | ₹ 2,202 | ₹ 3,675 | ₹ 6,012 | ₹ 630 | ₹ 670 | ₹ 335 | ₹ 5,635 | ₹ 2,970 | ₹ 905 | ₹ 1,332 | ₹ 40,716 | |
| April | ₹ 14,770 | ₹ 2,070 | ₹ 1,181 | ₹ 11,269 | ₹ 1,09,344 | ₹ 630 | ₹ 2,275 | ₹ 24,671 | ₹ 1,141 | ₹ 190 | ₹ 567 | ₹ 1,68,108 | ||
| May | ₹ 17,500 | ₹ 2,001 | ₹ 2,050 | ₹ 255 | ₹ 6,430 | ₹ 630 | ₹ 380 | ₹ 3,170 | ₹ 795 | ₹ 715 | ₹ 2,140 | ₹ 36,066 | ||
| June | ₹ 14,000 | ₹ 2,087 | ₹ 1,562 | ₹ 2,025 | ₹ 1,20,000 | ₹ 630 | ₹ 430 | ₹ 19,885 | ₹ 350 | ₹ 5,547 | ₹ 1,66,516 | |||
| July | ₹ 14,560 | ₹ 1,900 | ₹ 1,642 | ₹ 5,740 | ₹ 1,02,500 | ₹ 630 | ₹ 1,558 | ₹ 19,442 | ₹ 510 | ₹ 2,069 | ₹ 1,50,551 | |||
| August | ₹ 14,000 | ₹ 2,475 | ₹ 1,757 | ₹ 500 | ₹ 13,000 | ₹ 630 | ₹ 1,240 | ₹ 947 | ₹ 41,443 | ₹ 75,992 | ||||
| Sept | ₹ 14,000 | ₹ 1,912 | ₹ 940 | ₹ 3,000 | ₹ 12,250 | ₹ 630 | ₹ 2,130 | ₹ 5,287 | ₹ 200 | -₹ 12 | ₹ 40,337 | |||
| Oct | ₹ 14,000 | ₹ 2,176 | ₹ 3,890 | ₹ 1,332 | ₹ 15,000 | ₹ 630 | ₹ 1,940 | ₹ 16,587 | ₹ 742 | ₹ 1,100 | ₹ 452 | ₹ 57,849 | ||
| Nov | ₹ 14,000 | ₹ 1,822 | ₹ 781 | ₹ 3,022 | ₹ 15,160 | ₹ 12,630 | ₹ 250 | ₹ 6,196 | ₹ 1,089 | ₹ 163 | ₹ 55,113 | |||
| Dec | ₹ 17,300 | ₹ 2,279 | ₹ 3,695 | ₹ 8,427 | ₹ 48,645 | ₹ 338 | ₹ 3,995 | ₹ 750 | -₹ 512 | ₹ 10,000 | ₹ 94,917 | |||
| Total | ₹ 2,22,249 | ₹ 24,758 | ₹ 23,745 | ₹ 50,574 | ₹ 4,10,291 | ₹ 1,24,865 | ₹ 15,896 | ₹ 335 | ₹ 1,21,327 | ₹ 13,790 | ₹ 6,969 | ₹ 16,000 | ₹ 51,443 | ₹ 10,82,242 |
| % of total earn | 16.31% | 1.82% | 1.74% | 3.71% | 30.11% | 9.16% | 1.17% | 0.02% | 8.90% | 1.01% | 0.51% | 1.17% | 3.78% | 79.43% |
| Salary | Equity (dividends are not calculated) | Bank Interest(only qtrly) | Reimbursement from office (mobile, trip etc) | Maturity of investment | Others | Loan Repayment | Total | |
| Jan | ₹ 1,06,228 | ₹ 2,000 | ₹ 237 | ₹ 1,08,465 | ||||
| Feb | ₹ 98,116 | ₹ 15,000 | ₹ 34,600 | ₹ 4,000 | ₹ 1,51,716 | |||
| March | ₹ 93,641 | ₹ 3,201 | ₹ 34,020 | ₹ 1,740 | ₹ 3,067 | ₹ 1,35,669 | ||
| April | ₹ 89,574 | ₹ 3,000 | ₹ 16,627 | ₹ 1,368 | ₹ 1,10,569 | |||
| May | ₹ 89,414 | ₹ 34,020 | ₹ 2,490 | ₹ 1,25,924 | ||||
| June | ₹ 90,880 | ₹ 6,960 | ₹ 1,800 | ₹ 99,640 | ||||
| July | ₹ 91,031 | ₹ 3,389 | ₹ 1,400 | ₹ 95,820 | ||||
| August | ₹ 85,944 | ₹ 7,850 | ₹ 5,000 | ₹ 98,794 | ||||
| Sept | ₹ 86,495 | ₹ 4,530 | ₹ 13,427 | ₹ 1,04,452 | ||||
| Oct | ₹ 90,729 | ₹ 3,513 | ₹ 94,242 | |||||
| Nov | ₹ 90,590 | ₹ 28,315 | ₹ 8,111 | ₹ 1,500 | ₹ 6,670 | ₹ 1,35,186 | ||
| Dec | ₹ 93,049 | ₹ 4,645 | ₹ 1,500 | ₹ 2,800 | ₹ 1,01,994 | |||
| ₹ 11,05,691 | ₹ 5,000 | ₹ 19,336 | ₹ 1,36,384 | ₹ 57,878 | ₹ 23,712 | ₹ 14,470 | ₹ 13,62,471 |
 |
| Expenditure analysis for the year 2016 |
Observation on the above:
1) Some common categories such as Debt repayment is not even a category for me.
2) The highest 30.11% of my total earnings I spent on family affairs which is not even a standard category in any expense tracking app/Ms-excel
3) I spent negligible amount on medical and very little on personal development/clothing etc. If I had not bought the Mobile phone, it would have been less than 1%.
4) Transportation is an area where I am saving lot of money comparing with standard trend.
5) Pundits give 20%-25% on Housing. Well below 20% is a very good sign.
6) I travel quite a lot. Also, I do gift/donation to a great extent.
7) 9.16% and ~21% (in addition, PF from salary) - I think I am doing quite good on saving/investment.
8) No earning apart from salary; very poor share market performance.
Below is my plan for 2017:
On categories:
1. Cylinder will come into utilities
2. PF will come into Investment with monthly tracking
3. Maybe I will merge Medical with Personal
4. I will do away with untracked, and any cash calculation will fall into category Food, to be renamed as Food/Household
5. I will not approximate Maa's bills
6. Will introduce a new category named Tax to Government.
7. Profit from sharekhan, MF etc will come into a new category- From Market. I will try to include dividends as well. Because, I really want to push my sharekhan usage
8. Bank interest and maturity would be merged into one category with Others. Apart from this, Earning will contain income from salary, reimbursement, loan repayment and From Market.
On expenses:
1) There has to be a way to curb spending on Family category. However, with the house construction still on-going, Moina's marriage on cards, Dada's still evolving economy, I don't see much hope though. Nevertheless, Maa's 7th pay and Moina's job life will bring some relief for sure.
2) I should increase my expenses on food/household and personal development. Pundits say invest on yourself and we Indians never do that.
3) Since categories are marked now, I am sure I would be more energetic to input all the expenses and as per exact category. At least, writing this blog is giving me lot of enthusiasm.
On earning:
1) Total earning would come from Payslip, not the money deposited in bank. The bigger objective is not to do the analysis from audit perspective, where bank transactions are prime indicators. I should in such a way that gives though process to my mind for behavioral changes
2) I should try to get some income from share market etc. From Market is a nudge.
Let this be a good beginning. Happy 2017 !
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