Another great month!
I took on some overtime and this month had 23 billable days instead of the usual 22, so my check was extra large. Meanwhile, my credit cards, while not as low as they could be, were still only about $800 for the month.
As a reminder, what I call my savings rate is actually the amount I put into savings along with additional payments I make toward my mortgage principal. But I use the term savings rate as shorthand. That said, I’ve decided to break down my so-called savings rate and an actual “savings” savings rate at the end of the post.
Here’s the snapshot of my savings:
I’ve been setting aside $50 each month toward a new iPhone. I ended up getting one ahead of schedule — to make sure I avoided any price hike from the recently announced tariffs — so the money will just go back into savings. That’s where I borrowed from to pay for the iPhone last month.
This was the last month I needed to save for this goal, so this line item won’t be around next month. Technically, the money is going into savings, which means it could count toward my overall savings rate. But since this was a short-term goal, I think I’ll omit it as though I were still saving it in a separate account.
I automatically put $160 aside each month as saved savings. This is the amount saved by cutting the cord, lowering my Internet bill, switching to Ooma for my home phone, etc.
In addition, throughout the month I set aside money every time I save with a coupon or sale on something I’d have bought at regular price. This also includes the cash back from my cash back card, which was a big $70.70 this month thanks to the repairs I did last month. All those savings added up to $122.67.
Both of these amounts ($160 and $122.67) go toward my mortgage principal so it counts toward my savings rate.
My tenant moved in on June 15th, so I received $250 in rent for the month. This gets added on to my mortgage payment, so it counts toward my savings rate.
This received the usual $300 boost. It’s my hope to have a big down payment or even the full amount to pay when the Civic eventually dies. The Civic is still at just 73,500, and I only drive maybe 12,000 miles a year, so I’m hoping I have several years left before I have to replace the car.
This is a long-term savings goal, so the amount count toward my savings rate.
I put $150 a month aside for car insurance toward my yearly premium. I think it’s getting to be time to take comprehensive coverage off the car — I need to research at what point that’s for the best — so hopefully this amount will go down soon.
Car insurance is a relatively short-term goal, so it doesn’t factor into my savings rate.
I had stopped contributing to this fund because I thought I had enough money in it at around $1,200. Now I’m planning to go to London. While I’m going to use rewards cards to help pay for part of the trip, it’s still a good idea to start padding the account again.
I put $100 in, which as yet another long-term goal — I’m not planning on going to London until 2021 — counts toward my savings rate.
I put $200 in automatically each month. I then round down any savings/SEP-IRA money to the nearest $100 and put the difference into the emergency fund.
This month, that meant an additional $79.80, for a total of $279.80 going into the account. This definitely counts as part of my savings rate.
I put $500 into this account every month to make sure I max it out this year. This absolutely counts toward my savings rate.
All of this left me with a surprising $1,900. I did the math several times just to make sure I wasn’t somehow getting it wrong. I wasn’t.
I’m playing catch-up with my retirement savings, so I’m trying to concentrate as much as I can there while still building up savings somewhat. I wanted to put $500 into savings, but $1,500 into the SEP just sounded sooooo much better than $1,400.
So I put $400 into savings and $1,500 into the SEP-IRA. There was an additional $208.44 from blog income this past month — affiliate income, a sponsored post and a few book sales — which also went to the SEP. This means I put a shocking-for-me $1,708.44 into this retirement account.
These amounts both count toward the savings rate.
How’d I do?
Well, there are multiple ways to look at a savings rate: pre-tax, post-tax and “actual” savings (not including principal paid toward the house).
If you want to look at everything — including the additional mortgage payment — then my rates were:
- 41.8% pre-tax
- 52.8% post-tax
That’s pretty fantastic and meets my goal of “saving” at least 50% of my income.
If you’re more of a stickler and only consider retirement savings and savings accounts “real” savings, then my rates were:
- 37.1% pre-tax
- 47% post-tax
So still pretty darn good/close to my goal.
Your results may vary
Just another reminder to not compare financial situations. Everyone’s is going to be a little bit different, and it’ll have a real impact on how much you can save.
Again, I’m a single woman with no children. All of my money is my own, and I’m paid well. Of course, I’m spending a bit more than I’d like, but I’m at least somewhat frugal. So I have a lot of funds to play with. And obviously saving is easier when you have more money. Because math.
So if your results aren’t as good as mine, please don’t beat yourself up. I have a lot of advantages. And if your results are better than mine… Well, first of all congrats! Secondly, I’m working on getting better about how much I spend. And third, I have to follow my own advice and remind myself that our situations are probably different with different incomes, priorities, abilities, etc.
How was this month for you?