Life Situation:
Mr Tomoro owns small business creating websites, Mrs Tomoro is a stay at home mum and does the bookkeeping (and budgets) for the business also from home. We have to pay our own annual Tax bill, as well as quarterly GST. We are both 32 years old and have two boys 5 & 7. As I indicated in the subject line we live in Australia in a country city called Toowoomba in Queensland. We are debt free (no credit cards) excluding a small mortgage of $130,000 on a house worth $350,000AU Mrs T is looking to study soon and afterwards start a part time business - when little Mr 5 starts school in a couple of months, may take time and start up money before bringing in a significant income.
Gross Salary/Wages & Taxes:
Our business turnover last year was $170,000 (year before $140,000) however with work expense deductions we are left with about $112,000 (year before 99,000) then need to pay tax on that. This year tax was $20,400. (We can't guarantee we will earn the exact same income this year however we have already made $44,000 after expenses in 3 &1/2 months so I think we are pretty on track (we keep in mind the upcoming xmas/new year season is always a low income period)
Pre-tax deductions:
Life Insurance $480pa but no Super yet. Hospital Basics Cover (Medicare) included in tax approx $2000 per year
Other Ordinary Income:
We have a side hobby income from a footy forum that brings in about $1000 per month.
Qualified Dividends & Long Term Capital Gains:
We both have a small Superannuation Fund (we are not yet contributing to it yet- on our to-do list) which we cannot access until we are 55, it has approx $10K each.
Current expenses: We use YNAB so figures are monthly/4week averages over a year and include our business expenses.
Average Business Expenses Total $6984.67 Breakdown below:
GST $1,151.38
Business Client Expenses $1,400.00
Vehicle Fuel & Exps (45% business deduction) $272.00
Business Account Bank Fees $10.00
Mr Tomoro’s Phone & Internet $130 +75 $205.00
Car Insurance $91.55
Xero - Accounting software $50.00
Life/ Trauma/ Income Protection - Insurances $111.75
Business Insurance/ Cyber Insurance $200.00
Adobe Software Subscription $57.99
Accounting & Company Expenses $100.00
Office Rent $715.00
Business Travel Expenses $120.00
Equipment $350.00
Employee Expenses/ Payroll $400.00
Annual Tax $21K $1,750.00
Average monthly Income after Business Expenses & Taxes $7405.52
Average House Expenses Total: $944.27 Breakdown Below:
Mortgage $320-360 (Interest Only)
Home Insurance $111.76
Gas for Heating, Water & Cooking $87.50
Electricity $133.34
Water $66.67
House Council Rates $185.00
Other Spending Average Total: $4621.25 Breakdown Below:
Groceries $1,100.00
Tithing $680.00
Fun Money $160
Eat Out & Take Away $400.00 (Usually 1 eat out dinner, 1 cuppa date, 1 lunch out per week)
Unexpected Expenses $50.00
Kids Book Budget $20.00
Mrs Tomoro’s Phone $30.00
Extras Health Insurance $56.25
Health Expenses eg Eyes/Teeth $150.00
Clothing $250.00
Household Goods & Appliances $250.00
Home Maintenance + Veggie & Flower Garden $200.00
Birthdays & Gifts $150.00
School Books, Excursions & Uniform $60.00
Kids Music Lessons (Proposed for Next Year) $120.00
Kids Sport Swim/Soccer/Karate $85.00
Date Nights & Entertainment (incl netflix & itunes movies) $100.00
School Holidays Activities $40.00
Anniversary Treat - Weekend Away $70.00
Xmas Prezzies & Annual Camping Trip $250.00
Hobbies/ Cycling/ Craft $100.00
Hair cuts, skincare, waxing, makeup etc $300.00
Savings: $1840
Mortgage $680-640 Principle per month
Superannuation Contribution (New Category just this month) $200.00
‘Merica Holiday Savings $25K (currently at 12K) $1,000.00
Renovations - Not while saving for overseas
Savings Rate = Approx 24%
Assets:
2014 Renault Megane Family Car - purchased with cash $20,000 after trade in of old car in 2015.
(Used mainly by Mrs T for school pickup/drop off x10 per week, Groceries x1 per week & Church x3 per week)
Lots of bikes ranging in prices $50-$5000 all get used regularly.
$10K Emergency Fund/Buffer
House worth $350,000AU
Liabilities: Small mortgage of $130,000
The kids school is 2.4kms away = 35mins up hill for an adult to walk (a little too far for my 5 year old unfortunately) Moving any closer to the school would mean $100,000 added to mortgage because of better area for exactly the same size - Cost of moving doesn't seem worth it at this stage. The high school is only 1km so definitely walking there.
Mr Tomoro rides to work 3.6kms everyday excluding raining days when Mrs T drops him off first before the kids go to school.