2015 Goals: July Update

Another month, another coffee, another update.

Increase Net Worth – Target of 40% across the year
The target
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%
The target
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.


Cycling – Target 200 miles a month average
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
Mr Z  

5 thoughts on “2015 Goals: July Update

  1. Dividend Drive

    Solid results, Mr Z.

    A 50% increase in net worth in a year would be a fantastic result indeed! You must be delighted.

    I am not sure what my average savings rate is over the year. It is not something I pro-actively track, it must be said! Maybe I should take a look at some point. I know it will be pretty high. Great to see you're nearly at the 60% mark!

    Shame about the cycling target. But still, what you have achieved is pretty good nonetheless!

    Keep up the good work!

  2. Cerridwen

    I agree with DD – that's a pretty great savings rate.

    I've never calculated ours either and it's a bit too late to start now as we're not going to be in a position to do very much at all now my husband has retired. But even when we were going great guns I don't think we came anywhere near 50% . Well done. 🙂

  3. weenie

    Great work on the networth Mr Z and fantastic savings rate (yes, I'm getting that envy again….).

    I think my rate will be well down this month which will drag my average down further but I'll be continuing to save as much as I can where I can.

    Social life keeps getting in the way though!

    Good luck with the cycling, it's by far your toughest goal but keep at it!

  4. No More Waffles

    Mr. Z,

    Excellent numbers, you're doing fantastic!

    The markets have certainly retracted from their previous high. Most of my new holdings are in the red too, but I'm not to worried either. This is a long-term game after all.

    Besides, we're both enjoying a comfortably high savings rate. That means we can pick up lots of equity on the cheap, hurrah!

    You'd better get on your bike if you're going to make your goal. Since I bought a new one two months ago I've had a lot of mileage already – love it!

    Keep it up,

  5. Under The Money Tree

    NIce work.

    Re the cycling have you considered riding/training on a fixed gear bike? Most of my riding for the last 3 years has been on a fixie and it has two fantastic benefits:

    1. Minimal maintenance
    2. It makes you very fit

    So long a s you have brakes there's no reason not to ride fixed unless you're doing serious climbs. My longest ride to date sans gears is 300km. I now use it daily for commuting and all winter long for training, keeping my geared bike for longer summer rides or stuff with big hills.


Leave a Reply

Your email address will not be published. Required fields are marked *