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.