Another month has passed and it’s time to have a look at our savings rate again.Last month I did this for the first time and I also explained our financial plan that we have in place which explains what we do with our savings. Sometimes, it just feels like managing a company to me. Our savings are our profits and we invest our profits to generate future returns. It just feels good to monitor it and keep an eye on it this way. It helps us to stay on track and reach our goal of a minimum saving rate of 25% (excluding the home rebuilding).
Savings rate of August
Last month we had a real bad savings rate. This had multiple reasons but I don’t want a result like this to often because it crushes our target. For this month we made a budget and sticked to it and that worked out great. We had a big expected expense of € 475 and we already paid € 181 for the first materials for the home rebuilding. Next to that we had unexpected income because the government told us that we have the right to get more money back for our 2015 daughters daycare (+€ 631) which was a nice surprise.
All in all this resulted in a savings rate of 27,96% of our August income which is on target. Especially because € 181 Euro of expenses are due to our home rebuilding which I don’t include in our yearly target of a 25% savings rate. So I’m quite content and happy with the result! Especially after last months result.
We are back on track again. Our savings rate for this year is now on 26,1% excluding the € 181 for the home rebuilding. So for the YTD we are also on track! For the rest of the year I expect no problems. We have some additional costs for car maintenance but also some additional income. So we are well on track for our goal.
Do you also track your costs and income? How do you do that and does it help you to reach your goals? I’m curious to your experiences, so don’t hesitate to leave a comment below!