Hit 70% savings rate this month.

[VolcanicArts]

I’m happy to say I’ve put more emphasis on saving a larger percentage of after tax income. I have been using an app to closely monitor all my income and expenses and found out I hit my target goal of 70% this month. It was a little boring as I’ve had to put off on some of the things I usually do, but I wanted to see if it could be done, as well as see what the minimum cost of living per month is around so I can calculate how much the minimum I need to reach FI. I’m going to try to keep this up, my previous goal was 50% which I was hitting inconsistently. I’ve also been a little more motivated to save because I took a few market hits recently coupled with returning from a vacation, and some relatively high unexpected bills. It felt a little rough hitting 70%, I might try for an extreme 80% later if I can establish a consistent baseline at 70 and be more used to it.

[2Birds1Stone]

Great job, savings rate is one of those metrics that can be skewed high or low depending on that particular month's spending.

I've noticed that if I fill my gas tank and fridge at the end of the previous month, the following month's savings rate ends up being artificially low. The reverse is true as well.

Savings rate is best viewed over a longer period of time, the longer, the more accurate.

[2Birds1Stone]

I did not intend to detract from your accomplishment in any way, shape or form.

[Blindsquirrel]

 Mass Respect!

[Raenia]

Congratulations!  I've found month-to-month savings rate to be pretty inconsistent for me, ranging from mid 30's to low 60's, to April's artificially high 98% (unexpectedly high tax return check).  My average hovers just above 50%, though, and that's what really matters.

[Retire-Canada]

Congrats on hitting your goal. I find my spending month to month inconsistent for a number of reasons including large annual expenses that are concentrated during specific months. So I really only care about my annual savings rate which I try and hit by saving a specific $ amount each year and knowing that will roughly hit my goal.

When it comes to spending and FIRE I think you need to come up with a budget you can hit without great pressure. If each month is a lot of work and focus to stay on target that makes things more stressful than they need to be. I look at it as a marathon not a sprint. When I want to reduce costs I look at what is driving my main expenditures and how to reduce them while maintaining factors/elements that are important to me. The analogy would be losing weight by making fundamental lifestyle choices or by strictly counting calories.

[Laura33]

Awesome!  Congrats!

The most important part isn't the specific number you hit -- it's all the work you have put in and are putting in scrutinizing which expenses really matter and which are just fluff.  That attitude, and the knowledge you gain from it, is going to pay dividends for years and years.

[ixtap]

Congrats on hitting your goal. I find my spending month to month inconsistent for a number of reasons including large annual expenses that are concentrated during specific months. So I really only care about my annual savings rate which I try and hit by saving a specific $ amount each year and knowing that will roughly hit my goal.

When it comes to spending and FIRE I think you need to come up with a budget you can hit without great pressure. If each month is a lot of work and focus to stay on target that makes things more stressful than they need to be. I look at it as a marathon not a sprint. When I want to reduce costs I look at what is driving my main expenditures and how to reduce them while maintaining factors/elements that are important to me. The analogy would be losing weight by making fundamental lifestyle choices or by strictly counting calories.

I look at current cuts as training for that future marathon by getting used to lower expenditures now. That is, we have set our retirement budget by what we have been spending the last few years without making any concerted effort to cut back. Any cuts I can make in the next couple of years and feel genuinely comfortable with, mean that much more buffer in retirement.

[Retire-Canada]

Any cuts I can make in the next couple of years and feel genuinely comfortable with, mean that much more buffer in retirement.

That's reasonable. You'll know they are realistic if you can maintain your spending at the desired level consistently over a year without making it into a crusade.

[gggggg]

I agree with the others that a comfortable long term savings rate is the baseline goal. I think it's good to test yourself by incorporating extremes sometimes too. I've done no spend months before (except normal monthly bills, of course). Next month, or january, I plan to see how low I can go on groceries & food, since this is one of my less well done budgeting areas. The goal is to establish better spending habits, and experiment to see what works and what doesn't, so hopefully, some of the takeaways can be incorporated into my long term budget.

[VolcanicArts]

Thanks for the responses, as always good recommendations on here. Just started tracking my savings rate for the next 2 paychecks. It might go down a little because I need to buy Christmas gifts and don’t want to budget too much for those. Today was a little boring, still getting used to doing free or minimal cost things such as walking in the park, playing free games on my phone, improving on my woodworking side hustle, studying Spanish, and meeting up with a board gaming group one day a week. I’m happy to say today I spent a grand total of 1.89 (coffee). Now if only I could do that every day for the next few years.

[HawkeyeNFO]

That's awesome.  I never tracked mine on a monthly basis, just annually.  Highest I got was probably around 40%.

[TheAnonOne]

70% is super impressive!

Due to a higher HHI, I have hit 70% maybe 50% of the time and a few super good months I have broken 80%(just barely)

Always impressed to see this, as I know how hard it can be to hit these stats.

[Retire-Canada]

Always impressed to see this, as I know how hard it can be to hit these stats.

How hard it is really depends on your income. A 70% savings rate for a single person making $45K/yr is amazing. A 70% savings rate for a couple making $300K/yr combined income isn't the same achievement.

[TheAnonOne]

Always impressed to see this, as I know how hard it can be to hit these stats.

How hard it is really depends on your income. A 70% savings rate for a single person making $45K/yr is amazing. A 70% savings rate for a couple making $300K/yr combined income isn't the same achievement.

100% true. The real "achievement" is spending. Living on $1500 a month is impressive regardless of income, that same $1500 a month could be 50% SR or 90% depending on income.

Either way, I will always be impressed with 75%+ SR, because there are plenty of people making 6 figures and broke. Even here on the board, there are people with 100k incomes saving hardly 50%

[Laserjet3051]

70% is truly incredible. How are the wife and kids dealing with living on only 30% of income?

[VolcanicArts]

70% is truly incredible. How are the wife and kids dealing with living on only 30% of income?

I’m single right now and I don’t have any kids so that makes it a little easier probably. Who knows what the future holds, this may change in the next few years.

[Greenback Reproduction Specialist]

Awesome Nice Work OP!!

[ACyclist]

That is a ton of your income to stash away. 

We started our budgeting thing, last month.  We decided to get serious about the best egg and retirement.  We saved 72% of our income this month. This of course can go up and down throughout the year.  This forum is inspiring, we can save. 

[Prairie Stash]

70% is truly incredible. How are the wife and kids dealing with living on only 30% of income?

I’m single right now and I don’t have any kids so that makes it a little easier probably. Who knows what the future holds, this may change in the next few years.

They will thank you for it in the future, your potential future kids will always appreciate the extra time you may spend with them because you saved so much currently.