July Savings Rate – 10.46%

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.

8 thoughts on “July Savings Rate – 10.46%”

  1. When are you foreseeing a bump up in income? Second half of this month? If you can continue to keep the budget in the low four figures and bump up the job income you’re going to be sitting pretty!

    • I will have two full paychecks this month from the job I started last month which will result in a significant increase of income for this month. Unfortunately, this is just a temporary job and it will be ending later this month so the bump in income will be short lived.

    • Although I check in on my goal every month, my goal is for the year. I’m aiming for a 50% savings rate for the year. It doesn’t matter if I don’t save 50% every month as long as I hit that mark for the year.


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