June Safe Withdrawal Rate – 34.39%

by Andy Hough on July 16, 2014

I didn’t put any money into savings in April and I did not take any money out of savings in April leaving me with a 0% savings rate for April. I could have made a token contribution to savings in April, but since my future income is uncertain I decided not to add to my long-term savings. It makes more sense to keep the money in my checking account now and I can transfer it over once I have a steady source of income again. I don’t want to transfer money to savings and then have to take it right back out again.

My SWR rate for June was 34.39% compared to 39.23% in April. I never got around to calculating my safe withdrawal rate in May. My goal is to get the SWR down to 4% so the lower my SWR is the better. That goal is probably many years from being met. The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. Once I reach that point I will consider myself financially independent.

I have 34.89 months of living expenses saved which is a nice improvement from April. I calculate my safe withdrawal rate by dividing the average of my trailing twelve months of expenses by my total money saved. When I don’t add any money to my savings the only changes to my SWR and months of living expenses saved are from my investment performance and the average of my trailing twelve month’s of expenses going up or down. My expenses for May and June this year were a fair bit lower than last year which helped reduce the average of my trailing twelve months and contributed quite a bit to the improvement in months of living expenses saved and my SWR. Stock market returns helped my figures as well.

The improvement isn’t quite as good as it looks though. I am counting about $1700 in savings as part of my permanent savings although I have them earmarked towards getting dental implants later this year. When I do get the implants and take the money out my SWR will get a little bit worse. I decided to just count the money as part of my permanent savings for now to make things simpler though. I’m hoping that this month I can add some money to my savings in addition to the money that is earmarked for my implants. It has been a pretty good year for saving money so far and I’m hoping it continues.


June Income – $3111.66

July 14, 2014

Here is a breakdown of my income for June. Online Income $728.35 Interest $4.34 Dividends $8.75 Cash Back $12.01 Amazon FBA $21.31 Medical Study $1300 Jobs $955.64 Motif Bonus $81.26 Total $3111.66 My income rebounded nicely in June. A lot of income that I earned in May wasn’t paid until June which made my May […]

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Weight Loss Bet – Halfway Done Update

July 12, 2014

As of July 10 I was halfway through my weight loss bet to lose thirty pounds in six months. I have bet $3000 that I will lose the weight. If I manage to lose the weight then I win $600 plus get my $3000 back, if I don’t win the bet then I lose $3000. […]

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July 2014 Goals

July 7, 2014

My goals for July are going to be the same as my goals for June. I’m going to just keep making the same goals until I do a satisfactory job of meeting the goals. If you don’t remember from my previous posts the goals I’m referring to are exercising for 30 minutes or more  and […]

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June Expenses – $1276.96

July 5, 2014

Here is a breakdown of my expenses for June. Household $400.00 Entertainment $86.44 Transportation $384.75 Food $136.65 Travel $80 Student Loan $106.00 Phone $26.81 Health $56.31 Total $1276.96   My June expenses were slightly higher than normal, but I’m not worried about them. The main budget killer this month was my transportation expense. The main […]

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Vegas Vacation Recap

July 3, 2014

Last week I had a five-day vacation in Las Vegas. Although I lost money gambling, the total cost of the vacation ended up being very little. I got the flight, hotel room, and rental car for free. I did not note how much cash I had before starting but I think I had roughly $85 […]

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The Minimum Wage Millionaire – Book Review and Giveaway

June 17, 2014

I was recently given a copy of the book, The Minimum Wage Millionaire: How a Part Time After School Job Can Change Your Financial Life, to review. I’m offered books to review almost every week, but I have been declining them for quite a while since I’ve read so many personal finance books that I’m […]

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Weight Loss Bet Update 2 and Other News

June 14, 2014

Earlier this year I bet $3000 that I would lose thirty pounds in six months. In the first month I lost twelve pounds. Another month has passed since then so now it is time to post my weight loss for the second month of the bet period. After doing so well in the first month […]

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May Income – $92.79

June 6, 2014

Here is a breakdown of my income for May. Online Income $0.00 Interest $3.37 Dividends $0.00 Cash Back $39.53 Amazon FBA $3.54 Sell Stuff $46.35 Total $92.79 Yikes! My income for May was terrible.  A check I was supposed to receive from an advertiser didn’t arrive so I my online income was actually negative in […]

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