Another month, another monthly savings report! At the last day of every month, I sit down with a cup of coffee and go through my accounts. This helps me to stay focussed and on track to financial independence and early retirement (FIRE). My goal of saving more than £300,000 lies still in the far distance but each month, I see myself getting just a little bit closer (or maybe I am overly optimistic). To find out more, read my grand FIRE master plan and check out last month’s monthly savings report.
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The concept of “good” spending
So far, I have always thought that spending is inherently bad and saving is inherently good, especially when saving towards FIRE. I was thinking that spending must be associated with guilt while my savings hardly ever evoke any positive emotion.
Since April, when I started to report my monthly progress and expenses, I no longer feel bad about spending. This month, my petrol and social expenses were higher than usual, but it was money well spent. I helped a friend and socialised, which I should do more to be honest. I am the person that happily minds their own business for a year and then comes out of their hole to find out they have no friends…
Part of the reason for me not feeling negative about spending is that I can be assured that I am still on the right track to FIRE. I make more money each month than I can possibly spend anyway. This is not because I earn a gigantic amount of money, but because I do not spend mindlessly.
Monthly savings report: June 2019
My goals for June were to stick to my budget, investigate alternatives to matched betting and learn more about investing.
Somehow, I reached none of these goals… I still think I am doing fine, so I am not overly concerned about not reaching these goals.
Monthly savings report summary for June 2019
My total take-home income this month was £2,560. This includes the salary from my full-time job, my matched betting profits, and interest. Matched betting has been mostly on hold this month and I am not going to publish a profit report as I simply have not done enough.
I am also super happy to announce that Monethalia has generated its first income. Sadly, due minimum withdrawal rates I cannot access this yet, so I cannot include it as income.
In June, I spent a total of £1,206 (breakdown in graphs below). As usual, rent is my biggest expense making up just under half of my total expenses. This month, my car needed a new air pressure sensor, causing my car costs to be higher than I would like them to be. Well, the Monethalia Petrol Monster is not young anymore.
I spent a lot of time driving this month, I helped a friend to buy furniture and visited two other friends that live in different areas of England. Driving by car is so much cheaper than taking the train, so I am glad I drove.
My yearly payment contribution flows into a separate instant-access saving account. I use this money for expenses that only occur once a year such as my car insurance, flights to visit my family and insurances.
To create these graphs, I used Microsoft Excel and data provided by Monzo. Monzo is a genius mobile bank that automatically breaks down your expenses by category. Saves me a ton of work! If you follow my link to sign-up, you will receive a £5 bonus.
My FIRE fund (FTSE global all-cap index fund accumulation) has really taken off this month. It grew by 8% and generated interest of approximately £200. It is amazing how money makes more money without any input from myself. I was hesitant whether the concept of FIRE would actually work, but now I can actually see it happening.
Another point I realised is that I should probably add my work pension to my FIRE fund. I do not add the growth of this pension to my income because that would seem weird to me. If you ask someone how much they earn, they do not typically add their pension. However, as this is my pension, it is definitely relevant to FIRE. This is why you see such a huge growth in my FIRE fund this month. I have another pension in Germany, that I will add next month when I can access the documents.
Apart from my Vanguard Fund, I also have £1,000 invested with Ratesetter for 14.9% interest. If you are interested in opening an account with Ratesetter, you can get a similar rate using my link.
Goals for July 2019
Next month, I will be on holiday and visiting my family in Germany. Matched betting will still be on hold, especially because I am abroad. I have a weird German private pension that I started before I became financially literate and all the documents are at my mother’s place. So it will be time to sort that out. Apart from this, I am planning to relax a lot!
Read my monthly savings report for July to find out how I did.
Should you also be interested in saving for FIRE, you can find a list of actionable steps here.
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