The 2015 Mid-Year Money Checkup: How am I doing?
I did a quick January to June financial checkup on my income (both business and personal) and so far, am doing quite well despite all my attempts of self-sabotage with shopping and eating out.
Can’t change this. It is what it is. If I can work more, I will.
You might be wondering why taxes are so low. It’s because I give myself a very low salary, so I don’t trigger high taxes.
What I need is a cash horde left in the business so that in the years that I don’t work, I can still pay myself a living salary.
Decrease expenses all around is my goal for the next half of 2015.
My business expenses are pretty lean but my personal expenses are not.
I could do better in that arena, namely watch my Starbucks, David’s Tea, Eating Out & Wardrobe-related expenses.
I can do this!
So breaking it down a bit more, this is what I see:
So far, I have been saving ~83% of my net income but I’d like to reach 90% (oh I remember those days when I did not have such expensive tastes!!!!)…
Why I didn’t take my net worth number
This is not my actual “net worth” number because if we just go by my net worth, I have easily made an increase over $100,000, however as a long-time commenter (tomatoketchup) once pointed out, net savings is more important than the actual net worth number because that can fluctuate up or down depending on the markets.
I agree with him that your actual DOLLAR savings, are more important than paper gains because of the market, seeing as I am a good 30 years off from retirement.
Luckily I do all my own expenses and bookkeeping, not to mention keeping a pretty accurate track of my spending with my budgeting tool on the personal side, so I am pleased it is $86,000 I am saving as net but I know I could have done better.
Anyway, here’s to the rest of 2015. I can expect about the same kind of numbers at the end.
Back to the chart: My net savings will be about $172,000 but maybe I can challenge myself to reach $200,000.
Why not? I may not make it but I can damn well try my best to reach this arbitrary round number, especially if my personal spending drops by at least $500.
$500 x 6 = $3000 which would bring me to $175,000.
Then I just need to find $25,000 somehow. Via the business expenses being cut even more or making more money.
Bottom line: The more hard cash (net) I save, the better.