Tuesday, October 20, 2015

Income and Expenses, Savings Rate for Q3 2015

October has passed already more than half, and 2015 is left only a few months. This year has so far been very lucrative for me, including a few nice surprises in the form of additional dividends. So now is the time to look at how I managed during the third quarter, and how my journey towards financial independence is progressing. As I mentioned in my first income / expenditure report, I will make a summary on a quarterly basis, because my months in the case of income are very different. This will give me a better view of the overall situation and hopefully will inspire some of my blog readers.

Here are my numbers for Q3:

All revenues are reported net of taxes.

During the third quarter of the wage income was quite good. In July, I got a summer vacation money, that's the reason, why my salary income in July much higher is, compared for normal months. On the other hand August, much smaller, because I spent my vacation in July. September was again a busy month at work, I was at work on two weekends, due to this my salary is much higher as on normal month. Expenditure in July was a lot higher than my average, mainly due to the holidays.
My goal is to save about half of my wage income and invest those wisely. In the third quarter I clearly missed my target, due to high expenses in July, my saving rate of wage income was 45.69%. When I take into account also the dividend income, my savings rate rises to 59.30%. 

One thing that I will follow with great interest is the dividend income and expenditure ratio, because it is the most important thing on my way towards to the financial independence.

Except July, the third quarter was pretty normal. In July, my expenses were higher than average, and also dividend income was about a thousand euros, "too" high, due to the extra dividend of Kraft Heinz.

Let's look at how I have succeeded so far in 2015:

My expenses were an average of 1330 Euros and my salary was an average 2670 Euros per month. As you can see, during the three quarters I managed to save over 50% of my wage income, precisely 50.16%. Of the total income my savings rate at the end of the third quarter was 63.78%.

After an excellent second quarter, it is time to go back to reality and realize that there is still a way to go. During the first nine months, my dividend income covered 75 per cent of my expenses.

I look forward to what the next quarter will look like. Dividend income will be lower than in the third quarter. Wage income likely to be close to normal (2k EUR per month) and expenditure hopefully a bit less than in the previous quarter. 

Thanks for stopping by! 



  1. Looking good. Your overall savings rate is rock solid! What's your estimate; how many years till FI and are you going to stop working when you hit your target?

    1. Hi Timo

      My goal is to achieve the FI in 2020. If I continue to do the work or not, depends on many things, but FI give me a chance to choose what I want to do.

      Thanks for visiting!

  2. Wow DH, you've really been working hard! 50% savings rate with just your work income is excellent. And your dividend income is approaching 100% coverage of your expenses, that's great!