Hi Mustachians,
We are a family of 4, soon to be 5 (dad (31yo) and mom (29yo) married with kids) living in Northern Denmark, Europe. We have been following the FI movement for about 5 years, optimizing our budget and spending habits over and over again. But somehow we feel stuck, because there doesn't seem to be anywhere else to optimize. We realize that our tax-systems are wildly different, but we hope that you will comment on our progress, goals and the plan, or just give us any tips on how to stay motivated.
Below we have listed our average monthly income and expenses, based on the past 22 months.
Income (post tax and company matched pension contribution)
+ Dad: $4.475 ($840 to pension plan)
+ Mom: $2.350 ($415 to pension plan)
+ Kids: $420 (government pays aprx. $210 per child, depending on childs age, number of kids and parents tax bracket)
= Total: $7.245
Expenses
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Home
- Electricity: $65 (2.200 kWh/year)
- Heating: $160 (56.500 cubic feet per year)
- Maintenance: $310 (major renovation during the last 4 years)
- Mortgage: $805 ($0 post FI)
- Tax: $200
- Water and sever: $35 (2.000 cubic feet per year)
= Total home: $1.575 ($770 post FI)
Insurance
- Accident: $40 (decrases to $20 when kids grow up)
- Cars: $40 (decreases to $20 post FI)
- Health: $55 (government provides free basic health care, will increase to $90 post FI)
- House: $30 (partly self-insured)
- Liability: $15
- Travel: $0 (increase to $10 when kids are ready for travel abroad)
- Unemployment: $230 (decreases to $0 post FI)
= Total insurance: $410 ($140 post FI)
Transportation
- Fuel and maintenance: $475 ($240 post FI)
- Green taxes: $55 ($45 post FI)
= Total transportation: $530 ($285 post FI)
Misc
- Child care: $455 (part-time, $0 post FI)
- Fun: $240 (recreation, sports)
- Groceries and household: $610
- Health: $190
- Holiday: $60
- Media license: $30 (Quote from government: In Denmark anyone who has a television or a computer, smartphone or tablet with internet access has to pay a media licence.)
- Phone and internet: $0 (Employer-paid, $70 post FI)
= Total misc: $1.585 ($1.200 post FI)
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Total expenses: $4.100 ($2.395 post FI)
Assets
+ Dad pension plan: $36.000 ($52.000 pre tax)
+ Mom pension plan: $27.000 ($40.000 pre tax)
+ Savings account: $36.500
+ Home equity: $133.500
Liabilities
- Home: $86.500 fixed at 0,7%, repricing in April 2018
Our goals
1. Stay at home mom
2. Pay off mortgage
3. FI
Our plan
Mom takes the paid maternity leave with out 3. child until June 2018, thereby enabling us to pay off the mortgage completely by April 2018.
Mom will start working in 2023, when all kids are in school, and we will hopefully be able to retire around christmas 2026.