Another savings rate report, the fourth one already! I’m excited to once again share how I’ve done over the past month in honing my frugal skills. Ever since moving out on my own I’ve experienced first-hand how much saving a bit here and there help out in the end.
Before going through September’s numbers and determining my savings rate, I’d like to thank you guys for being such an awesome audience. Even though I’ve been busy as all hell the past few weeks, your support and feedback kept me going to be an active member of the personal finance community. I didn’t write as much as I’d like though, but I hope to have a productive upcoming weekend.
So, without any further ado, my income and expenses!
|Paycheck||€ 1,960||As expected|
|Dividends||€ 12||My very first dividends from MCD and FP|
|Other||€ 180||Side hustlin'|
Overall, September was a good month income-wise. The salary from my full-time job was as I expected, while I also made a significant portion of money on the side. I furthermore received my very first dividend payments from McDonald’s and Total! How crazy is it that I had to do nothing at all for 0.56% of this month’s income?
|Rent||€ 350||As expected|
|Utilities||€ 62||As expected|
|Telecom||€ 13||As expected|
|Groceries||€ 91||Failed at trying to beat Will|
|Restaurant||€ 26||Sushi and fries (multiple times)|
|Games/PC||€ 15||Humble Bundle and longer DVI cable|
|Subscriptions||€ 8||Google Play Music|
|Entertainment||€ 16||Beers with friends|
Here you can see the upside to being busy at the office most of your time: almost no expenses whatsoever apart from a monthly rent payment and a utilities bill. Discretionary spending hit an all-time low, which is nice from a financial standpoint, but next month I hope that it’s not just because of a lack of free time.
Still, I’m truly happy my waffle diet helped me to save 72.3% of my income! That’s almost as much as when I was still living with my parents! Had you told me that I would keep so much of my paycheck in my pocket two months ago, I’d have shrugged that off as being impossible.
How wrong I was.
Almost all of my September savings are now invested in dividend growth stocks, one of which is GlaxoSmithKline, a British pharmaceutical company I looked at last month. Another €95 again went to my personal tax-optimized pension fund since it provides me an immediate 30% return through a tax break.
Last month I wondered whether I should adjust my goal for 2015 to 60% on average instead of 50%. Considering this month’s savings rate it seems that might actually be a good idea. In 2014, however, I’m still aiming to save over 70% because I stayed at my parents’ until July. Here are my savings rate for 2014 so far:
- January: N/A
- February: N/A
- March: 87.4%
- April: 65.3%
- May: 78.6%
- June: 72.9%
- July: 76.7%
- August: 65.3%
I’ve omitted January and February because of a silly tracking error in my budget spreadsheet, even though those months are in line with the rest of the year. From March onwards I’ve saved 74% on average, which is exactly the same as last month. Great!
Now I’m off to all your blogs to check out how you’ve done over the past month – I really love reading other people’s income and expenses reports. If you’re not a blogger yourself, let me know in the comments how your September was!
Thanks for reading.