Expenses Pinnacle

Expenses Pinnacle

I have gone through the standard living expenses in Real Life Expenses article and it would seem to be enough. There was food, roof, car, clothes and so on. That’s the most stuff we use in life. But would you call this a life? Expenses pinnacle financial plan is a look at the life of complete freedom.

Imagine yourself on a day seconds before you pass away:

  1. Would you be happy looking back at your life?
  2. Would you have interesting stories to tell to your grandchildren?
  3. Would you be able to go without being anxious and envy of others?
  4. Would you be able to say there was nothing I would have changed?
  5. Would you forgive yourself for all the decisions you could have made, but you haven’t?

If you answered – YES – to all of these questions then there is no reason for you to continue reading this article, because you have what you want already. Although, give it a glance, it won’t hurt and maybe will even make you want something more.


My purpose of life is that I want to enjoy it – travel, see the world, visit every corner of our planet Earth. You will enjoy it differently. You may want to buy a castle in Disneyland or get married and have five children. No matter what the purpose of your life is, it was not included in the previous plan. Furthermore, it costs money, a lot of it. Plus if you spend your everyday life to enjoy it – you won’t have time to work – remember? And again, working is fine and I enjoy it myself, but we are talking about a different type of enjoyment here – freedom.

I was very conservative before, because that’s the main point at the start. And I don’t want to live from pay-check to pay-check – so implementing the first two plans is a key. There is no point in travelling with my hard earned money. These are the money of sweat and blood – I have spent my life minutes working for it. And if I stopped working – they would stop coming in. You don’t want that, do you?

Since this one is the last stage of my financial plan, I want to make sure that the most of inaccuracies were caught off early on. Due to this, I’m adding another 20% on top of all my Real Life Expenses. This will cover the stuff I have forgotten and will even include some one time big purchases like washing machine, hoover, fridge, TV and so on. 20% doesn’t seem like a lot for so many things, but no one buys all the machinery every year, year in, year out, so it balances out. This pushes our Real Life Expenses from £13,402.8 to £16,753.5. And do not forget that we are not including VAT here.


Let’s Be Realistic

There is no way on Earth I will know how much I would spend being in Thailand in a month. Or even visiting countries like the USA, Mexico, Brazil and so on. Everything completely depends on the flight prices, where I stay, what I eat, where I go during the day, how I travel, the time of year and many other factors. Nevertheless, from my previous experiences I noticed that everything costs mainly twice or trice as much as it would normally do in a long-term. I will use this to estimate my completely independent life expenses.


Looking back at my Minimum Viable Expense plan, I know that it costs me £600 to rent a flat for a month, which is £20 a day. So renting something in AirBnb in a decent place, not too posh of course, I could get something for £40 a day. Taking it longer term, I would be able to ask for a discount too. But to be extra sure we make this bill £60 a day, which converts into £1,800 a month. And that’s about it. All other expenses related to the flat are non-existent. Water, heating, internet, council tax, anything – I don’t care – it’s landlord’s problem. Yes, the hotels would be more expensive, but it would balance itself out, because not every place will take exactly £60 for a night.

Food & Phone

The other things missing are food and a mobile phone bill. Currently I spend £120 a month on food. Making it twice as much would be enough. I don’t think it would be very easy to make food myself whilst travelling, but I would try as much as I could. It’s definitely healthier, because you use better products for yourself. And it’s not fried, and not semi-packed – lasting for 2 years. Crazy! So food – £240 a month. And phone was £5 a month and I think £5 would be more than enough. I don’t think I would be calling much more, maybe even less, to be honest. I’d be too busy running from the baboons!


That’s about it from my Minimum Viable Expense plan. Let’s move on to the next one. There aren’t many things I’d need from my Real Life Expenses plan, but it would be more expensive to get them done though. For example, I wouldn’t need myself a car or a breakdown cover, not even an insurance. However, if I ever wanted to rent a car – it’s about £100 a week and this is cheap! We are looking at £50-100 a day, frankly speaking! Don’t forget to include the fuel cost and some other gimmicks you have managed to purchase due to the dealer being a sneaky bastard. And that’s a lot of money! I can’t even estimate on this. Being very conservative I’d say £50 a day is a reasonable price, plus £10 for fuel per day.


The clothes would not be too big of a problem for me, because I just do not eat them. I can wear them for a long time without changing too much. They would degrade faster due to travelling, but having £200 a year is more than enough. But since it’s our end goal we want to hit it right or at least close to right – make it £400 a year.

Hygiene & Cleaning Up

Hygiene price could be included into the rental price, because most of the time hosts provide all sorts of things you have ever wanted. But I will leave it at £5 a month for the emergencies. Cleaning up groceries wouldn’t require any investment, but cleaning up facilities price would increase quite a bit. Using washing machine is mainly not allowed if you stay in the hotel or AirBnb or Hostel. You have to pay for this service most of the time and this cost is not included anywhere else. So leaving it at £20 a month is a good estimation. To make this plan a conservative one – I’ll make it £40 a month.


I have just re-estimated the whole plan altogether. It means I will be living on my foot most of the time. Although I would have where to stay, because I included the room price, I would be constantly moving during the day. After some time, I would want to take-off and move somewhere else, which means paying for the flight tickets. Not every continent has Ryanair services or any other cheap flight services, hence flight tickets can be a huge hit to my balance. Assuming I would fly once in a month or two and it wouldn’t be very far flights, it would cost me about £500 each time. Yes, it’s not exactly the same each time. One time it would be a £1,000, the next – only a £100. But I average it out and hope it balances. It ends up being £500 a month.


Here you have it. Here is my plan. It’s a lot I have to achieve. Yours is definitely different. You may need more, you may need less. Plan it out. I showed you how. No matter when you are reading this – plan it out. First – Minimum Viable Expense, second – Real Life Expenses and third one – this – Expenses Pinnacle. There is nothing impossible. Only the people who are too lazy to change anything say so. It’s hard to believe in this myself too. Why? Because I’m far from this. I’m very far. And I’m lazy too. But I never give up. It’s not about how many hits you can take before you fall, it’s about how many times you can stand up and walk forward. That’s what matters.

Subject £, Cost (Month) £, Cost (Year)
Passive Financial Independence 1,396.13 (+466.7) 16,753.5 (+5,600.7)
Active Financial Independence ——————— ———————
Rent a Room – AirBnb, Hostel, Hotel 1,800 21,600
Rent a Car 1,500 18,000
Travel – Flight Tickets, Any Tickets 500 6,000
Fuel* 300 3,600
Food 240 2,880
Emergencies* 100 1200
Cleaning Up 40 480
Clothes 33.3 400
Phone 5 60
Hygiene 5 60
Total 4,523.3 (+3,593.9) 54,280 (+43,127.2)

This is yet another explanation why I have done three plans instead of one, because this one is mainly an estimation of what I will need, whereas the previous two were an actual data I had. Have any comments or questions? Please do leave them below. I’d love to know what you think.