Why hello, Savings Diary…
Thank you all for the love on my September update 😀
The first goal for 2016 is to try and hit an average savings rate of 60% across the year. A lofty goal, indeed.
Like most of you, the majority of my savings each month are made up from pension contributions and monthly ISA contributions. I also contribute the maximum I can into a share options scheme with my employer, because it’s too good to miss.
The last three months savings rate were all about 70%. Did the savings cacophony continue? Chuffed to say, yeah, it did, with a savings rate of 69.8%. A purchase of some new glasses set the Zombie coffers back a little, notching me below the 70% mark.
Average savings rate for the year is still trending the right way. Going to just miss out on my goal for the year by my calculations.
Target: 60% savings rate
Year to Date average: 53.3% FAIL
In month: 69.8% PASS
My second goal is centred around growing my NetWorth.
NetWorth growth, in the early accumulation years, will be primarily impacted by my Savings Rate, i.e. my first goal. Mr Market will try to have his wicked way with things as well, but until savings become more substantial, market movements will have less of an impact compared to me piling in hard earned cash each month.
Tracking NetWorth is my ‘savings diary’, and it will ultimately help me decide when the time has come to change employment. Be that to early retiree or into another career with the supple and supportive cushion of a weighty NetWorth.
My goal for 2016 is to increase my NetWorth by 45%, and I don’t include my home for the purpose of this goal.
To be on track I needed to increase NetWorth by 36.3% from the start of the year to the end of September. I actually saw an increase of 42.5%, nearly there…
My Networth continues to head north. 30 months out of 32 have seen an increase. Only 2 months have headed down the way. Literally the power of a high savings rate at the start of the NetWorth growth journey ruthlessly battering it northwards. It’s a blunt tool, but boy is it effective.
Target: Annual 45% increase in NetWorth.
Actual: Annualised projected growth of 53.0%.
Goal three is simply to overpay the mortgage each month.
Mrs Z and I carried on overpaying the mortgage this month, £250 each.
Target: Overpay mortgage each month.
Actual: £250 overpayment each.
Keep on saving people, FI is just around the corner. Admittedly the corner is a few years away…
All of my prior months updates are here, if you just. Need. More!
Spend Less, Save More & Escape the Horde