October 2016 – NetWorth and Savings Rate Update – It Continues

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.

Finance Zombie - Savings Rates

October 2016 Savings Rate

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…

Finance Zombie October 2016 Networth

October 2016 NetWorth

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%.

Result: PASS

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.

Result: PASS

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

Mr Z

5 thoughts on “October 2016 – NetWorth and Savings Rate Update – It Continues

  1. London Rob

    Hi Mr. Z,

    Congratulations on another stellar month! The hard work and savings is surely paying off for you in the start where the hard work is, and watching the savings rate climb steadily regardless of the market is a wonderful thing!
    Keep up the good work and you will be there before you know it!
    London Rob

    Reply
  2. weenie

    Incredible stuff, paying down huge wedges of your mortgage as well as having such a high savings rate!

    I’d be interested to know how close your own portfolio is to your 4% SWR experiment portfolio?

    Reply
    1. Mr Zombie Post author

      Hi Weenie,

      In what I’m invested in? I have more cash and the bulk of my equity is in VWRL, whereas the experiment is LifeStrategy/S&P500/European Fund/Gov’t bond fund.

      So similar in that there is no real investing in individual companies, but different make up overall!

      Mr Z

      Reply

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