August was a great month for saving. I made $3661.68 and saved $2650 for 72.3% of my income saved. It is very easy for me to save money when I actually make a decent amount. This good month of savings will be a big help in reaching my goal of saving 50% of my income. My expenses were also lower in August which helped lower my average monthly expense total which helps with my safe withdrawal rate. My stocks lost money or I would have done even better. I lowered my SWR to 52.2% from 58.13% the month before. I have a long way to go to get to my goal of a 4% SWR, but at least I’m making progress again.
The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. I have 22.96 months of living expenses saved now. That is a little bit higher than the month before and still below the 24 months of savings I had earlier this year. Now that I have more months of expenses making my average monthly expenses, one good expense month doesn’t change the average that much. I expect to save a decent amount again this month so the SWR and months of living expenses saved should continue to improve.