Another month, another coffee, another update.
Increase Net Worth – Target of 40% across the year
To be on target I need to aim for an increase of approximately 2.8436156% a month –> ([1.4 ^ (1/12)] – 1) x 100 or a smidgeon under 22% for the year to date. This doesn’t include the equity in my house, it is ISA, Pension and cash only.
The main event
Net worth actually increased by 3% in the month and that brings me to a 28.7% increase since the start of the year. Ahead of my target, so it’s all good. With a pretty small savings pot my contributions are still relatively significant each month so I would expect generally positive movement each month unless there have been untoward things happening in the market (like there was last month). If things carry on as they are it looks like I will increase my Net Worth by more that 50%, which I would be a smashing result.
|July NW – An overall northward trend is nice to see|
There’s no denying that markets have come down from their cloudy peaks earlier in the year and that many of my holdings are in the red. I’m not bothered though, it’s a long term game.
NW for the year to date is here.
Still a PASS
Savings rate – Target average of 60%
I set a target of 60% at the start of the year, to challenge myself to get my savings rate up towards the lofty heights seem by some other bloggers (I’m looking at you NMW and Frugalwoods).
The real deal
Savings rate for July crept in just above target at 61.8%. I am pretty fucking happy with this as I had two stag dos and a wedding in July. I guess accommodation and flights were payed for in advance and in the month I cut back in other areas as I knew it would be a pretty expensive month. It seems after seven months of battering my mind with these updates that frugal thinking is becoming more normal.
The average for the year so far is 57.1%, up from 56.3% last month, slowly slowly catchy monkey.
Now, 61.8% represents what I should save each and every month under my current savings regime (yep, it is that strict). If I hit this every month I would end up with a 59.1% savings rate by the end of the year…and that won’t do. I can’t even round up. Saving another £100 a month would see me streaking passed the target in December, a nice sprint finish. That’s what these targets are all about, right? Seeing if you can push yourself a little bit and in my case squeeze out (teehee) a little more saving here and there.
|July to date savings rate|
My spending has normalised at a reduced level, now a 60% saving rate doesn’t seem too bad so I should be able to tighten up going forwards.
With the in month rate being above target I’ll take that as a pass for the month.
This ones gone, while I have sorted out my spending and increased my savings rate it seems at the expense of my cycling. I took my bike in for a service and it needed quite a few parts. I bought them all myself (as I don’t want to pay shop prices) but all in all it’s another two weeks off the bike while it is getting fixed. I’d love to have the confidence to fix the bike myself, but given some descents can hit 50mph I don’t trust myself just yet.
5,000 miles last year and barely 1,000 this year so far. Everything will sort itself out for some nice winter cycling I’m sure 🙂
Spend less, Save more (than 61.8%) and Escape the Horde