Wednesday, December 11, 2013

December 2013: $129,979 (+$8,668)

Bank accounts$70,528
Investment account$98,171
Pension savings$9,444
Student loan$–48,164
Net worth$129,979
Burn rate6,2 years
Savings rate65,2 %
Millionaire month   April 2025

Large increase in net worth mostly because I worked a lot extra in November. The last 12-16 months have been extraordinary, with relatively high income, low expenses and more than 20 percent annual return from my index funds. I surely don't expect the same rate of increase in net worth the next 1-3 years, but an increase of between $2,000 and $5,000 per month is realistic. 

2 comments:

  1. Hi,
    How do you calculate your savings rate? The amount of cash after net income that is put into savings? Its impressive to have such a high savings rate.

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    Replies
    1. Hi and thank you very much! Yes, it's the percentage of my net income that I put into savings (including the principal-part of my student loan). In other words I save about 65 out of every 100 dollars I earn. The number that I post in this blog the savings rate for the previous 12 months.

      Put in more mathematical terms:
      Savings = Net income - Expenses
      Savings rate = Savings / Net income

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