Summary:

  • This is the savings report of August 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.
Savings August 2019

August was another great month for my FIRE journey!

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.

After a good July, I was able to keep a high savings rate. You can read my July savings report here if you missed it.

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.

The Numbers

August was a low income month with quite a considerable decrease from July (-17,23% MoM) and down 8,59% against the 2019 average just for reference.

I do not have a fixed income like most people and I can easily have 10 to 15% fluctuations month-over-month.

Time to get all numbers in. Let’s see my 2019 saving results so far:

  • January: 1500€
  • February: 2690€
  • March: 7350€
  • April: 3810€
  • May: 1100€
  • June: 4300€
  • July: 5000€

And now August with 4420€…the third-best month of the year!

Savings Update August 2019

So as we can see August is still above the average line…

I now have 4 months till the end of the year to meet my 4000€ a month goal. While I already anticipate that September will be a hard month due to extra expenses, results so far are still good.

My average saved amount in the first 8 months of 2019 is now standing at 3771,25€.

Having realistic goals is always better than just “dream goals”. Easier to achieve and to improve.

THE REVIEW

August was not a vacation month for me as for most people.

While I had a 4-day getaway trip to Austria and Germany, I managed to keep my non-mandatory expenses very low compared to previous months. Hotels were booked on the credit card and the payment will come in September. It also explains the quite good result for August, when income as lower than previous months.

On the other hand, my mandatory expenses have now increased due to the highest mortgage payment being now active. This brings an extra expense of 1209,18€ per month, while still paying the rent due to the fact that the construction got delayed.

The fact is that in the coming months (hopefully not later than June 2020), my ability to invest will be somehow reduced.

Out of the saved amount, 3620€ was transferred to my investments accounts but not yet fully invested. The market has been quite volatile during August so I prefer to wait for a sign of direction. If you are curious about my asset allocation, please go here.

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.