Simple Pound

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It’s Tuesday the 7th of August and I still haven’t written up my monthly review for July… there are plenty of good reasons why I haven’t done this yet and you might guess that being in New York at the moment doesn’t exactly leave much time for financial research… But the truth is, I am actually quite scared to review last month, which is why I keep putting it off.

Anyway… it’s time to face the numbers. One thing is for sure: in terms of spending it has been a pretty bad month. I bought an entire business wardrobe, was eating and going out and generally enjoyed the fact that the dollar is so amazingly weak compared to the pound. Unfortunately even cheap things add up if one just keeps spending…

On the other hand, most of the things I bought were pretty essential and would have cost me so much more if I would have bought them back in London. Moreover, I’ve always bought good quality products over cheap stuff knowing that it would probably last me longer and make me happier.

Alright, enough rambling. Here are the numbers…

• £ 250 on a kingsize duvet and 2 pillows
• £ 140 on eating out
• £ 90 for coffee and quick lunches at the offices
• £ 1,300 on clothes and shoes
• £ 250 on gifts
• £ 120 on cosmetics and make-up
• £ 210 on cabs and public transport

See? I told you it would be bad… and yes the thirteen hundred pounds on clothes is a looot of money, but it also bought three 3-piece suits, one 2-piece suit, about 10 blouses and 3 pairs of shoes one of which are Dior. I definitely had a weak moment with the Dior shoes and clearly ignored my brain telling me I didn’t actually need designer shoes. On the other hand, they are a classic pair of black heels that I can hopefully wear for many years to come… *blush*

On the other hand, there are some good news as well. First of all, I still spend less last month than I earned, which can be mainly attributed to the fact that I’m not paying any rent at the moment (my employer is paying those expenses while we’re in New York).

Moreover, I automatically put £250 away at the beginning of the month (paid myself if you wish), which are earning me 8% interest as we speak (well, as you read…). This was the highest contribution possible and exceeded my expectations of what I could afford to put away. I am still leaving all my coins in a jar every evening when I get home from work, and last month I’ve accumulated $16.52. At the current exchange rate this equals roughly £8.26. Check out the progress page to see how I’ve allocated it across my different goals.

And finally, my parents’ graduation present will be added to my net worth as well since they bought me an amazing ring from Tiffany’s that I still regularly stare at…

After doing all the maths, we therefore still see a fairly nice increase in net worth of 60%. I’m quite relieved to see that, but next month I will have to pay the deposit for my apartment in London. Therefore, if I want to keep my net worth at least at the same level, I really need to decrease my spending. Most of the essential things are “out of the way” which should make this task a little easier. On the other hand, I am still going to be in New York in August and I have no illusions about the money I’m going to spend on drinks and cabs. My goal for next month is simply to undercut July’s spending and after I return to London to make sure that I don’t become a victim of lifestyle inflation.

Wish me luck!

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