Since I started on my financial independence journey I am actively monitoring the amount of money I am saving.
The PF / FI blogs outline a number of ways to calculate “savings rate”. Firestarter has summarised these. I am calculating these using my take home earnings as it keeps things simple for me. My take home earnings are deducted for
– income tax
– national insurance
– pensions (via employer scheme)
The June savings come to 62% of my take home money. This is the maximum I have saved since I have started measuring these since February this year. The savings included
– regular payments to tax efficient ISA (cash and shares)
– one off share buy (probably an impulsive buy)
– a small regular payment to a fund
– £100 to the emergency/ rainy day fund
I am very happy with 62% however August to Dec are normally expensive months for me because of
– professional memberships / insurances renewals (must for my work)
– car / travel insurance renewals
– my other half’s birthday
I cannot do much about the first one but I must look at the other three and ensure that I keep my savings rates to a good level.