Savings Diary: March Update

It’s been a while, Savings Diary.

Finance Zombie Savings Diary

I missed a few of these updates, nothing that a swift update couldn’t fix.  Hopefully work won’t kick my puny ass again resulting in less writing.

I’ve set myself a couple of financial goals, in order to track my progress to Financial Independence.  The most important of these is tracking my savings rate.  Not only tracking it, but targeting a challenging savings rate.  Something like 60%.  Then, once that just becomes normally, I’ll increase my target to 65%, then 70% and so on.  At least until my happiness plummets off the edge, into the Chasm of Despair.  Then I’ve found my limit.

The second is around NetWorth growth.  Sure, it’s a little out of my control.  I can steer it in the right direction with my savings rate, but it will also be at the whims of the market to some extent.  Having said that, Mr Zombie fully supports regularly updating and tracking your NetWorth.

Savings Rate

Being well and truly in the accumulation phase, my savings rate is the most important aspect of my plan to become a financial baller and be Financially Independent.

A high savings rate will be the Nitrous Oxide in my savings journey and also the metric that is most within my control.  I just need to apply a subtle upwards pressure to my earnings and a brute downward pressure on my spending.  Result: higher saving rate.

For the last couple of years I have targeted a savings rate of 60%, and just fallen short.   59.2% for 2015 and 54.9% in 2016.  Just missed out in 2015 and it was always going to be tough in 2016, what with a wedding to pay for and all.

As I’ve not hit my target savings rate of 60% yet, I’ll keep the same goal for 2017.  Let’s hope I break this run of consistency and actually hit my target this year 🙂

The first couple of months of 2017 left me with a savings rate of 64.3%, a good start to the year.  Wonder if I can keep up the pace, or have I gone out of the blocks too hard and doomed gas out in the second half of the year?

Q1 has brought lovely savings rate weather

Q1 has brought lovely savings rate weather

March was pretty awesome, with a savings rate of 74.0%.  My third best savings rate since starting this blog.  That comes to an average of 67.53% for the year.  A few more months like this and the 60% target will be within my clammy grasp.

NetWorth

A high savings rate chugging away in the back ground is the fuel to my NetWorth fire.

I had a target of 45% growth across 2016, and why change it?  I saw 58.5% increase in 2015 and 54.1% in 2016, and we all know past performance is  fire indicator of future performance.  Am I right?

Keeping a nice and high savings rate has meant a nice start to the year for NetWorth growth 🙂

Climb!

Climb!

That’s a 10.8% increase in networth from the start of the year, which puts me at a projected 50.8% for the year.  So that’s the second goal on target.

Now, in the spirit of full disclosure I have tweaked what’s  my NetWorth.  Mrs Z and I, like a couple of absolute legends, started overpaying our mortgage last year.  Overpayments were included in the savings rate calculation, but not in my NetWorth.  And we all know that Zombies are irritated by inconsistencies.

So I have hacked my Networth to include mortgage overpayments.  Which is helpful, because we have hatched a plan to pay off our mortgage in two and a half years.  More on that in a future article.

Well, that’s it for the March update.  My soft office hands are tired from all this typing.

Prior updates can be found right here.

Mr Z

9 thoughts on “Savings Diary: March Update

  1. Exit Engineer

    Hi Mr. Zombie,
    Just came by to say I really enjoy your writing style and love watching your progress. I’m also overpaying my mortgage and count that as saving in my book.
    Quick question: How does it feel looking at your Zombieworth graph? Looks like you’ve tripled the value since you stated tracking! Keep it up, it’s inspiring. I’m below your starting point (with a wedding to pay for next year) but hope to join you on the upwards projection.
    -ExitEngineer

    Reply
  2. JoeCrystal

    So far so good. It is interesting to see your networth went up so quickly. Really does show how much difference a three years saving can make. I am surprised that you are so close to paying off your mortgage, how long was it since you got the mortgage? 🙂 I am still paying much as possible off with my but it is still a long way, even with maximum 10%. 🙁

    Reply
  3. sarah

    You’re such an inspiration, I’m.aiming for 50% saving rate. Great that you can push yours.
    Can you help me out with (probably a dumb question)…I keep reading about having an Index Tracker that I at a super low rate charge, but where do I go to open one? Which should I choose? And is it taxed or is it possible to get it through an ISA?
    Please help 😊

    Reply
  4. Mrs Small

    Inspiring post. I am just starting off on my FIRE journey (literally started a blog this week) and trying to find as many others to keep me motivated. I can’t wait to hear about your plans to pay your mortgage off in 2.5 years!

    Reply
  5. Tom Charrier

    Sarah, monevators post is good as per the link above.
    Personally I chose Hargreaves Lansdown as a platform for a stocks and shares ISA- low rates, more fund options you can shake a zombie smacking stick at, and a very handy app to manage it all through. Obviously as an ISA it has the tax advantages. Super easy! (Well, filling its a bit harder but that’s we’re here right?!)

    Reply
    1. Sarah

      You’ve totally inspired me and I’ve use H&L much easier than I thought, don’t know why I was worried. My husband has an ISA s&s with Fundsmith, but I worried about fees. Anyhow, off now to look behind the sofa to fill it

      Reply

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