- This is the savings report of May 2019.
- Every month I write a savings report with the total amount saved.
- The amount I consider “saved” is the one that flows out of my checking account.
- Capital is allocated to the 5 different baskets mentioned on my Portfolio.
May was no good for my savings!
I have been writing about how much I am saving each month and I intend to keep on doing it. It does help me to evaluate myself and it keeps me motivated. Hopefully, it will also help others to commit to their financial journey.
While saving has a very symbiotic relationship with our income, how we manage our money plays the biggest role.
“If we command our wealth, we shall be rich and free. If our wealth commands us, we are poor indeed.”Edmund burke
I already discussed the importance of limiting our expenses in order to improve our savings rate and therefore, pave the way to financial independence. You can read here about how I manage to save more than 40% of income by doing 3 key things.
May was an average month in terms of net income but a little bit better than April (+12,4% MoM). April marked the lowest income of the year. May income was up 0,28% against the 2019 average just for reference.
Time to get all numbers in. Let’s see my 2019 saving results so far:
- January: 1500€
- February: 2690€
- March: 7350€
- April: 3810€
And finally May with 1100€…the worst month of the year!
So as we can see May results are far from good. Unfortunately, I had several unexpected costs such as car maintenance, health expenses and other leisure expenses that included a 4-day trip to Rome and some June vacation bookings. The aggregation of all really knocked down my savings rate.
My average saved amount in the first 5 months of 2019 is now standing at 3290€. It means my goal of saving at least 4000€ per month is looking still achievable if during the coming months I improve my savings rate.
Having realistic goals is always better than just “dream goals”. Easier to achieve and to improve.
When having unexpected expenses, there is not much we can do. We just have to deal with them. This is why I always recommend to hold at least 6 months of living expenses immediately available to avoid having to withdraw any investment.
Other extra expenses are related to vacations. As much as I would like to save more, enjoying life is rather important as well. I have nothing against of FIRE enthusiasts that avoid vacations at all and live in daily frugality.
It is a personal choice and a matter of sacrifice. I personally value a balanced approach, still allowing myself for some travelling expenses within a budget.
I am fully focused on improving my financial life and I take it as a step-by-step process.
“Financial independence comes from small goals compounded…”
From 2019, I started to seriously track all my financials. By seriously I mean I make it a monthly ritual. Yes, it does takes time to compile everything but I do like the visibility it gives me over my personal finance.
How much are you saving each month? Share your goal with me in the comments below.