I Saved 47.4% of $37k Income in 2018

I didn’t quite reach a 50% saving rate in 2018. I’m still quite pleased with the rate I was able to achieve. If it weren’t for over $4000 of medical and dental bills plus 2 1/2 months in Thailand where I earned almost nothing I would have easily saved over 50% of my income. I think a 47.4% saving rate is pretty decent for my level of income.

Last year was my first year of what I’m calling my semi-retirement. I worked roughly 7 months and had about 5 months off. I consider the first year of semi-retirement a success since I was able to save a big chunk of my income while having several months off and trying out living in Thailand. My semi-retirement plan is to work my tax job during the tax season and then work a couple of document review projects to boost my income when the projects fit into my travel schedule. I’ll continue the semi-retirement plan until I have enough money to completely retire or find something I like to do that makes sufficient money for me to live and travel. I might write a separate post about semi-retirement later. For now, I want to get back to the actual subject of this post.

My savings in 2018 consisted of $6500 to my IRA and $11499 to my work 401k. My income from jobs and net self-employment earnings was $37962. I also contributed $400 to my solo 401k and invested about $2700 in dividend stocks. I’m not counting the solo 401k or stocks in savings since they were offset by some credit card debt.

This year I will likely have a much lower income. My income was significantly boosted last year by working lots of overtime during the tax season. I don’t think there will be nearly as much overtime available to me this year. With the reduced income it will be quite difficult to match my 2018 saving rate this year. I do think I will be able to reduce my expenses a fair bit this year so it might not be impossible for me to save that much. If I get close to saving as much money this year as I did last year I will be happy.

4 thoughts on “I Saved 47.4% of $37k Income in 2018”

  1. Andy, I would feel more proud of you if you paid your mom more rent than you’re doing. I realize she agreed (or maybe even prompted) your just paying utilities — but I’m guessing she could use the extra $$. Your living there is increasing her own personal expenses. You’re a smart guy, so I know you’re aware of that. Why not kick in an extra $100-200 monthly, at least? (And continue to pay her utilities while you’re in Thailand, as well.)

    • In 2018 I only stayed with my mother the last month of the year and a lot of that month I was in KC in hotels. The 2018 saving rate wasn’t accomplished due to cheap rent at my mom’s house.

      For this year, you do have a point. I do purchase some food and household items that are for both of our use and help out in other ways (such as doing her taxes, running errands, etc.) Of course, money helps the most. I’ll consider ways to get her some more money.


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