Why hello, Savings Diary…
November was a spendy month in comparison to prior months, so I begin this NetWorth update with a little bit of trepidation and by delaying the inevitable a little bit.
When you run a website, you get access to all the behind the scene details. Things like the number of malicious logon attempts, 7,637 last month, or the number of visitors to your site. While having a casual browse of my site stats I found something a little curious.
It resided within data showing what users had searched in google to arrive at my page. More and more of this is moving into the “not provided” category, meaning it is becoming a bit useless. Still, there were a couple of interesting searches over the last week or so;
I dearly hope I provided the information that the user searching for ‘budget suplex’ was after. I suspect the user looking for the last search term left a little frustrated.
The first goal for 2016 is to try and hit an average savings rate of 60% across the year. Doesn’t look like I’m going to make it, but it’ll be close.
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 four months savings rate were all about 70%. A stonking third of a year right there. Sadly it didn’t rain savings in November, spending reigned and my savings rate dropped to 55% 🙁
Prepaying for a holiday in Febraury hurt the cash flow this month, and the saving rate suffered for it. Time to tighten the purse strings. Family members can have a voucher for an hour long conversation with me for Christmas. And they better be grateful.
Target: 60% savings rate
Year to Date average: 53.42% FAIL
In month: 55.0% 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 40.58% from the start of the year to the end of November. Didn’t hit my savings rate goal, but I still saw an increase of 44.85% to the end of November. Just 0.15% and I’m there 🙂
My savings rate wasn’t as high as it has been, pesky life getting in the way, but it’s still positive and NetWorth continues it’s upward trajectory.
Only another 0.15% to go and I’ve hit my goal for the year, barring a brutal December I should hit my target of growing NetWorth by 45% for the year.
Target: Annual 45% increase in NetWorth.
Actual: Annualised projected growth of 49.8%.
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