September is here already! Time for thousands of children to go back to school after two months of glorious vacation, but also time to look at August’s income and expenses report. Let’s whip out my budget spreadsheet and see how I’ve done.
|Paycheck||€ 2,007||As expected|
|Dividends||€ 0||First dividend payment is expected in September|
|Other||€ 535||Sold some stuff lying around|
Income was pretty high this month, mainly because I sold some stuff I wasn’t using anymore. Selling spare Super Nintendo games does boost your income significantly, like I wrote about in last week’s wrap-up. I tried to sell my SNES games – I’ll miss you Super Mario World – to offset the extra costs of moving and still be able to beat the Dividend Diplomats’ challenge of saving 60%.
|Rent||€ 350||As expected|
|Utilities||€ 62||As expected|
|Telecom||€ 40||High because of installation costs|
|Appliances||€ 121||Bought some stuff for my new apartment|
|Groceries||€ 142||Pretty happy with this|
|Restaurant||€ 89||Took my parents and grandparents to dinner|
|Healthcare||€ 16||Haircut among others|
|Games/PC||€ 19||Humble Bundle and some random tidbits|
|Subscriptions||€ 8||Google Play Music|
|Entertainment||€ 20||Beers with friends|
Boom! Only €882! I’m really pleased with this number, even though I had over €130 of unexpected costs and spent almost €70 on two one-off restaurant visits. If my expenses are this low every month from here on out I’ll be an extremely happy camper.
The mathematicians among you probably already figured out that earning over €2,500 and spending only €882 means a savings rate of 65.3%! That’s only 11% less than July when I was still living with my parents. At this rate I’ll be able to live off my savings in about 10 years, which sounds surreal.
Sadly though, I can’t keep selling Super Nintendo games. Let’s hope there aren’t too many unexpected bills on the way so I’ll be able to keep saving at least 60% of my income. Maybe I should adjust my overall goal of 50% to 60% next year?
Of the money saved in August my bank automatically invested €95 in a tax-optimized pension fund. I used the remaining €1,565 to buy my first dividend growth stocks, an investing strategy I adopted earlier this month. My very first purchase consisted of 20 shares of the French oil company Total.
Even though my main goal is to save 50% of my income on average, I aim to save a whopping 70% for 2014 because I stayed with my parents for the first half of the year. Here are my savings rates thusfar:
- January: N/A
- February: N/A
- March: 87.4%
- April: 65.3%
- May: 78.6%
- June: 72.9%
- July: 76.7%
Because of an error in my spreadsheet I won’t use the numbers from January and February to calculate my average savings rate for 2014. From March onwards I’m at an overall savings percentage of 74%, which is slightly down from last month.
Thank you for your continued support. My current savings rate would not have been possible without your encouragement and other personal finance bloggers’ challenges. I hope you guys also did great this month.
Are you happy with your August savings rate?