Like a Kraken breaching the surface, I return.
I’ve set myself a couple of financial goals in order to track my progress to Financial Independence. Keep It Simple Shithead, and all that.
The most important of these is tracking my savings rate. Tracking it and, of course, setting a challenging target. Something like 60%. Then, once that becomes normality, 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 – 60% target
Being well and truly in the accumulation phase, my savings rate is the most important aspect of my plan to become 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.
The first quarter of 2017 left me with a savings rate of 67.5%.
April was unintendedly excellent. I fecked up and transferred more into my ISA than planned, damn you fat fingers. And then suffered a bit for the remainder of the month. Still, it left me with an in-month savings rate of 79%.
The brings me to an average of 70.39% for the year, further cementing my hold on the 60% target.
It’s a bit of a silver lining as my crystal ball tells me that May is going to be a poor month on the savings front (that and being half way through the month). It forced me to delay a few things, meaning a tag team of expenses will be suplexing my savings rate in May.
NetWorth – 45% annual growth target
Hopefully the nice high savings rate will keep my NetWorth chuggin upwards.
To the end of March saw Mr Z with a 10.8% increase in Networth from the start of the year. April saw a 1.9% increase in NetWorth or a 13.03% increase since the start of the year, which is nearly at the required growth of 13.2% to hit my target for the year. Markets weren’t quite as kind as they were for the first quarter, so it would seem.
Work has calmed down a lot, which has allowed me to train for a summer of triathlons with a bit more intent. Like anybody with a inkling towards Financial Independence I enjoy my cycling. But it has been the swimming that I’ve been enjoying the most. I’m not quite up to the terrifying 1:15/100m pace for 400m that Rhino referred to, but I’m slowly getting quicker.
I did notice that BitCoin has been going wild once again, I nearly chucked some money into the unknown way back in early 2013. But I didn’t, mainly because I didn’t really understand it, which was the right call. Still if I’d chucked in £1k when the price was about $130 it would be worth north of £15k now. Has anyone every dabbled in BitCoin? I’m staying away as it more volatile than a heathy chunk of sodium in water, but I’d be interested to hear.
Prior updates can be found right here.