February. What a month. Most good intentions for the new year are already out the door, are they not? I for one decided not o loose weight at 31/12/2016 but I am just about to start so that I am ‘bikini’ 😉 ready when the swim season starts. Anyways, while it is the shortest month of the year, I managed to blow my budget. In fact, it was a terrible month for my savings rate.
As mentioned in my last post on the subject, I knew February would not turn out well for my savings rate. But it was worth than I feared. However, I can of course explain all of the payments that caused the savings rate to be this bad. Some were unavoidable and some were just my fault. What was unavoidable was for example the annual community tax payment. Half of which I have paid this month and the other half I will pay in March. We also went on a extended weekend trip which also cost a couple of hundred EUR. Finally, we paid part of a summer holiday trip this month which was also several hundred euro. The final payment for that two week trip we have planned will have to be paid in May. So, below you’ll see that we actually had to dip into our savings quite a bit in February as we had a negative savings rate of more than 30%. At a negative savings rate I not only would have to work for ever but it is also unsustainable once your savings are gone and your bank does not want to extend further credit. So, my savings rate has to improve. Luckily, I expect march to develop better. I’ll keep you posted on how it has turned out.
How was your savings rate in February? Ready to retire early any time soon?