I finally got around to completing my rather simple budget for this year.
On the income side I am predicting that my monthly income for 2007 will be the same as for the second half of 2006 (i.e. slightly higher than the average for 2006 as a whole). It will fluctuate from month to month but I hope it will average out at this level.
Expenses are a bit harder to predict, however I am expecting my monthly household expenses to rise slightly. The biggest increase will be school fees when our youngest child starts school in August. This will be partly offset by the fact that (I hope) the floating interest rate on our home mortgage will average less in 2007 than they did in 2006 . The current rate is less than the average rate for 2006. I am also intending to be more disciplined in my spending on luxuries. Last year I spent far too much on overpriced wine and a couple of paintings - something that I hope will not be repeated in 2007.
The bottom line is a projected savings rate of 42% of pre-tax income. This compares to a savings rate of close to 40% in 2006.