So in a previous post, I provided a breakdown of my monthly expenditures.
Monthly budget: $1,979 / Yearly budget: $23,748
Monthly savings: $1,568 / Yearly savings: $18,816
Yearly net pay: $42,562 (after taxes & benefits)
Net savings rate: 44%
A net savings rate of 44% is awesome, especially compared to the national average. The average American saves slightly more than 5% of their disposable income (Bureau of Economic Analysis).
Then I read about frugal powerhouses like Mr. and Mrs. Frugalwoods who are saving 71% of their income and I think…goddam, I can do better!
In terms of expenses, I have done the following in the past few years. In 2014, I sold my car which provided a yearly savings of $2,760 on insurance, gas, and maintenance (not including depreciation). I moved closer to work so I could bike to work from April-September providing an additional yearly savings of $450.
This year I plan to cut my clothing budget from $1,000/year to $500. Also, I’m not planning a big vacation this year, unless I meet the following goal…
Generate $10k in business income!
The basic rules of budgeting are spend less, make more. I’m definitely spending more and don’t think I could spend any less without sacrificing my sanity so I’m focusing on increasing my income.
So far this year, I generated $650 in business income so I still have a way to go. The spring/summer shopping season is soon approaching and my biggest selling season of the year, Christmas, is still months away, so it’s definitely too early to tell whether I will reach my goal…
$9,350 TO GO!