Savings Rate December 2016
December, and for that matter the whole of 2016, was fantastic from a savings rate perspective. We had a record month from the income side of things, and an average month in terms of expenses. This is a recipe for a winner. We ended up at a Savings Rate of 75.9% for December!
The summary for December is as follows:
- Incomes from Mr .CF (one sign-on bonus and one pay check), Mrs. CF (two pay checks) and an expense claim hit the checking account. Life was very good!;
- Income (principal and interest payments) from crowdfunding loans is now exceeding €180/month, this is a high as it is going to get and will stay this way for the coming 2-3 years (“hopefully”, see post on crowdfunding on details);
- Transportation was just above normal due to the many family trips and that fact that we are now using our own car again to get to work, in short the current expenses are likely the new normal for the coming year;
- Living expenses were below average this month, no surprises like unexpected maintenance and no property taxes or similar expenses either. This is the way we like it;
- Groceries & grooming hit a record high in December, mainly because we did some massive shopping. Normally we take the bikes for the grocery trips, but this time we actually drove the car to the grocery store (we do this once every one-two months). To be honest, we actually needed to go elsewhere and were driving by the grocery store on the way back, talk about efficient use of the car :-). We used the opportunity to stock up on necessities;
- Pretty much all social events were free, or virtually free. So again nothing interesting to report here. Had great fun with the various Christmas lunch and dinners, plus enjoyed some family time together over the holiday break. Most expenses associated with social activities are actually included in the groceries category this time around;
- Costs for day-care and kid related expenses below normal as the benefits for 2017 have increased and the first payment arrived in December. Daycare will now “only” set us back about €955 per month for 4 days per week. But there are obviously also some other costs in this Kid category, such as cloths, toys, etc.; and,
- The “Other” category was higher this month as Mrs. CF needed some new work clothing and a new jacket (she really got her money’s worth out of the old one).
For the year we actually did really good , if you don’t mind us saying. We ended the year with a overall savings rate of well over 60%. See below for the details (YTD totals on the left side):
The expense breakdown looks like this:
For 2017 we are not expecting such a high yearly savings rate, as we have some reno works still pending (as well as a bill for work done in 2016). Furthermore, we did not go on a holiday in 2016 due to job changes and moving to our new house. We do plan to go once, maybe even twice in 2017, so set aside a larger budget for this. We hope to still keep it above 50%.
Did you do OK in December too? Was it also because of extra income, or were you able to limit the holiday expenses (or both!)?