Well, I finally decided to post a journal since my spending / saving ratio is finally able to meet the extreme definition. For the past 3 years I’ve been hitting the 50% mark but honestly I couldn’t stand the thought of 10+ more years of the daily grind- even though work is interesting, I like the situation, and my coworkers and bosses are pretty worthwhile people.
Stats on me I'm 33 years old, work in international conservation and live on a small island. I’m American but do not live in the US and since my income is lower then the IRS threshold I don’t pay income tax to the US currently (which is huge for savings). I want to reach ERE before 40, with high hopes I can get there by 37. That might be a little unlikely, but this journal will keep me focused!
I have cut expenses a bit since finding this community. Now that I have a goal in sight I’m more motivated than ever. I’ve never had TV, I prepay my cell phone and my office pays for my internet. I have an old piece of crap car that gets me from A to B but even thought I try to walk I usually drive 5 days a week.
My biggest challenge is investing- I’ve been watching the market for a couple years now with 20K +- in but I just can’t seem to pull the trigger on the 50K + I’d like to invest. I have a watch list but .. it’s hard for me to jump in with all the ups and downs and uncertainty.
Income from August 2011:
$6021--Regular Paycheck
Total Income:
$6021
Major Expenses from August 2011:
Housing $ 767.12
Car $ 215.86
Food $ 38.36
Dinning $ 334.50
Recreation $ 53.52
Other $ 133.80
Donation $ 179.74
Health $ 66.90
phone $ 4.46
Drinks $ 52.63
$1,846.89
Total Expenses:
$1847
Total net income saved:
69%
I might be able to get my savings a bit higher if I got rid of the car and ate out less but that is unlikely. Also due to my location I have annual travel costs of at least 4,000. Also this has been a good month for savings- no car repairs or insurance payments. Based on that I’m going to estimate annual expenditure at $2000 per month (24K per year, plus 4K for travel so I think I’m currently spending a minimum of 28K per year or a about 61% annual savings.
My rent costs are high- I do pay a premium for security, I have a plan that may cut this cost down a bit but it is dependent on factors outside my control currently. If I could knock my true monthly cost down to 1500 I'd be ecstatic, and I’ve be retired in 5 years for sure.
I’m considering and investment portfolio of 1/3 high yield dividend stocks, 1/3 deep value and a 1/3 in solar and solar related materials. Any opinions and thoughts are always welcome! I hope to update this monthly
Thanks to Jacob for a change inducing site.
Cheers
