Since joining the blog world, I have discovered that we have quite the few frugal Canadian bloggers out there. I thought I was pretty frugal, but there are others who are saving much more than me. For example, I came across a post by The MoneyGardner and how his household after tax savings rate is 34%. Mr. Cheap keeps his living expenses at $1150/month which results in a savings rate of around 77% (unreal) , and regular reader Telly saves 50% of her income!
I was quite impressed by this and started to think about our own savings rate and how we compared. As stated in my financial goals for 2007, we aim to save around 20% of our net (after tax) income. Doesn't seem like much compared to other bloggers but how are we doing thus far? Let's take a look at our household expenses.
As I've mentioned before, I use MS Money to track our household expenses. Going through the history for 2007, I've listed our monthly expenses since January.
February: $6,500 (paid off car loan here)
June: $8,600 (all insurances paid and new tires here)
= avg: $4,550/month in expenses (including RRSP contributions)
Subtracting the $400/month RRSP contribution from the expenses and using our regular 9-5 annual income (not including passive/alternative income), we currently have a NET (after tax) savings rate of approximately: 30%. Personally, I would like to be in the 50% range however, I won't complain as I've surpassed my 20% goal.
How much do you save as a percentage of your after tax income?If you would like to read more articles like this, you can sign up for my free weekly money tips newsletter below (we will never spam you).