Since we do all of our accounting at the end of the financial year it only makes sense to see how we did in terms of savings in July.
You can check out last years review here, but to sum up 16/17, we achieved a savings rate of 63%.
So how did we do this year?
Let’s get into the numbers.
Savings Rate For 17/18 Financial Year
Our savings rate for last financial year was… 66%
We earned $141,497 (after tax)
And spent $47,999
Sooooo happy with 66%! At the end of 2017, I posted our financial goals for 2018 and one of those goals was to achieve a savings rate of 65% or above. We ended up coming in last year at 64% 😭 haha, so I’m very pleased for us to reach 66% at the end of this financial year. Hopefully, we can carry it through until the end of the calendar year 🙏.
Breakdown Of Spending
So what did our precious $$$’s go?
And in pie form
There are a few little issues with the tracking categories for this year because Pocketbook had a major revision of their categories and it resulted in a few double ups and what Pocketbook thought something should have been categorized as and my interpretation. For example ‘Car’ was a major category for me using this software, but Pocketbook replaced a lot of my ‘Car’ transactions as the new category ‘Transport’. There’s also ‘Holiday and Travel’ and ‘Holidays’. The overall numbers are correct just some of the categories might not make much sense.
A few interesting things to note about this year’s breakdown compared to last years.
Rent and groceries still dominate the top spots so no changes there.
Interestingly ‘Food and Drinks’ came in at number 3. This category includes alcohol and going out for breakfast and dinners. It’s really no surprise that it’s number 3 for the last 12 months. Since I changed jobs at the start of 2017, we made the move back to our hometown which has resulted in us being a lot more social. We go out for drinks on Friday nights (in Summer) and get to hang out with friends a lot more. This has resulted in a lot more money being spent on social things but I have to admit, it’s been absolutely fantastic and well worth the extra spending.
A positive from the move was that we are now driving on average, less than 400km a week compared to our old commute to work. This has resulted in us being home a lot earlier, generally feeling a lot better because we’re not stuck in our cars so much and $1,523 difference in fuel mainly from our shorter work commute.
Amazingly we spent nearly the exact amount on groceries which is very interesting.
The lack of weddings certainly helped our savings rate. But interestingly enough, we have booked a lot more holidays than the previous financial year. I have a feeling that’s because we went to so many weddings in 16/17, it scratched that holiday ich that usually starts pestering in the colder months.
We spent nearly $2k less on presents which makes sense due to the lack of weddings.
And all the other stuff is pretty much on par.
What About You?
It’s so important to track your spendings. It’s always my number tip for people to reach FIRE quicker. I’m stoked with a savings rate of 66%! But it can always be better.
How do you stack up? Maybe 66% is easy street for you or near impossible for others. Remeber, it’s not so much about killing yourself to achieve a higher savings rate, rather acknowledging where your dollars go each month and being at peace with that or changing it up if you’re not happy with the current status quo. But you’ll never know unless your start tracking 📈
So what’s your savings rate?