It really is depressing to see how careless I was with my money!
My savings rate for Jan 2015 came in at a dismal 23.5%!!!!
Jan 2015 income
Reg. Income: $2417.7
Invested into E-Trade: $160
Mortgage (PITI): $1137.01
Student Loans: $260.24
Building Supplies: $271.11
$3567.70 – $2728.87 = $838.83
$838.83 / $3567.7 = .235 x 100 = 23.5% Savings rate
$838.83 – $160 = $678.83
I did not factor the ring into my savings rate as I am considering it a non common event. Clearly my biggest problem here are my eating habits. But what can I say… I love to eat! Something else I am noticing is the fact that at this point in my life 60% savings rate is a bit unrealistic… but I can still try! My mortgage and my student loans are going to stay the same for a while, so they will be my fixed costs. I also know that I can budget my food and coffee to $20/day or $140/week. Utilities somewhere around $90 actually seems pretty expected to me. And as I also said building supplies will be present for a little while so I can bring another rental unit online. Just by reducing the amount of money I spend on food to 20$ per day that will increase my savings rate to 33.9%! Still not even close to 60% but it would give me and extra $370 to invest or save. Furthermore once the next apartment is done building supplies will drop to virtual $0 for a long time I will be receiving at least $650 if not $700 a month extra in income and about $50 worth of gas and electric will be switched into a tenants name further reducing the utilities. At this point my monthly income will be $4217.7 and my total expenses will be around $2037.59 and my savings will be $2180.11. This puts my savings rate at 51.7%! Damn! still not 60% haha. One final thing im noticing is that my math was off in my 60% challenge page… Ill fix that later. At this point in my life 60% seems a bit out of reach but im not going to adjust my goals. I know eventually my income will increase to the point where my savings rate will reach 60% especially if I am able to save 51.7% to put towards future investments.
Im glad I did this, it really gave me some new perspective on what I need to do to get the job done!
I encourage you guys to do the same! I think you will be shocked at what you come up with!