July was not a great month for savings. My SWR slightly decreased to 58.13% from 59.41% the month before. It was an improvement, but I’m not seeing the big changes that I had earlier this year. My expenses should be a little lower again this month which will help. The biggest help will be the fact that I’m working a job that pays decent money which will allow me to save aggressively again.
My goal is to save 50% of my income each month and I didn’t come close to meeting that goal in July. I made $955.36 and managed to save $100. That amounted to a 10.46% savings rate. The main reason for the low savings rate was the low income. I need to save a lot more than 50% of my income this month to keep my overall savings rate at over 50% for the year since there will likely be at least a couple more low earning months this year.
The 4% SWR translates into having 25x your annual expenses in savings or 300 months of expenses in savings. I have 20.40 months of living expenses saved now. That is just a tiny bit higher than the month before and still below the 24 months of savings I had earlier this year. I expect to save a lot of money this month so the SWR and months of living expenses saved should improve quite a bit.