The SAVINGS RATE stands at the center of one’s FINANCIAL SHAPE.
It is the basis for our Investment Process (see our stock portfolio and P2P portfolio) and the key factor on our path towards Financial Independence.
The savings rate shows you, which percentage of your income (take-home pay, dividends, received interests etc.) can be “extracted” as savings.
If you want to shape your finances, track your spendings (rent, costs for groceries, commuting, insurances etc.) and calculate, what you keep each month! Write your savings rate down and then work on increasing it.
Find below our savings rate for each month since September 2016 (start of the blog).
2016
September: 56 %
October: 65.7 %
November: 68.5 %
December: 69 %
(average savings rate in 2016: 57.5 %)
2017
January: 58.1 %
February: 65.8 %
March: 68 %
April: 68.3 %
May: 69 %
June: 43 %
July: 73 %
August: 59 %
September: 60 %
October: 69 %
November: 67 %
December: 68 %
(average savings rate in 2017: 66 %)
2018
January: 58 %
February: 54 %
March: 55 %
April: 65 %
May: 59 %
June: 65 %
July: 68 %
August: 50 %
September: 52 %
October: 50 %
November: 52 %
December: 52 %
(average savings rate in 2018: 55 %)
2019
January: 62 %
February: 60 %
March: 57 %
April: 62 %
May: 65 %
June: 66 %
July: 67 %
August: 69 %
October: 71 %
November: 60 %
December: 70 %
(average savings rate in 2019: 65 %)
2020
January: 68 %
February: 69 %
March: 75 %
April: 78 %
May: 50 %
June: 48 %
July: 60 %
August: 62 %
September: 65 %
October: 66 %
November: 64 %
December: 72 %
(average savings rate so far in 2020: 66 %)
2021
January: 70 %
February: 75 %
March: 75 %
April: 75 %
May: 65 %
June: 60 %
July: 58 %
August: 55 %
September: 60 %
October: 65 %
November: 68 %
December: 69 %
(average savings rate in 2021: 65 %)
2022
January: 30 %
February: 15 %
March: 10 %
April: 0 %
May: 10 %
June: 5 %
July: 10 %
August: 0 %
September: 8 %
October: 10 %
November: 3 %
December: 15 %
(average savings rate in 2022: 8 %)
2023
January: 40 %
February: 30 %
March: 25 %
April: 10 %
May: 20 %
June: 30 %
July: 18 %
August: 20 %
September: 15 %
October: 10 %
November: 5 %
December: 8 %
(average savings rate in 2023: 18 %)
2024
January: 20 %
February: 24 %
(average savings rate so far in 2024: 22 %)