My savings rate

What percentage of your income do you safe? I honestly don’t have a clue and I’ll tell you why. 

After I receive my paycheck, I apply a certain procedure in order to sort out costs and savings. The first I do is I cut the total amount in half. 50% is what I save, thus, my initial savings rate.


That’s right Leo!

From the leftover 50% I deduct money for rent, food and utilities. Afterwards, another 50 € is saved for travel or bigger purchases. This was initially money for my car but due to certain circumstances I’m car free at this point. A complete post will be dedicated on this topic.

The surplus in my account after this procedure can be used for whatever my heart desires. Is there anything left over at the end of the month? Yes. There hasn’t been a month where I spend all the money I’m actually allowed to spend. Having excess money doesn’t mean I have to throw it out of the window. So the last step of my operation is to transfer this amount to my cash savings, before it all starts over again.

During the year, I receive additional dividend income, a tax refund and etc. Most of it I reinvest or save. Due to this, I am not aware of the actual percentage I save. I do know it’s more than 50% and that is a happy place to be in.

Do you have a savings strategy set up for you?

2 thoughts on “My savings rate

  1. Steveark 19 August 2017 / 04:31

    That is so cool! I love seeing your generation be brilliant. Most of mine haven’t been. I’m one of the fortunate few FIRE before it got cool. Great blog, lead by example!


    • themelondeal 19 August 2017 / 08:55

      Thank you so much Steveark! Your kind words mean a great deal to us! We would love to hear about your story towards FIRE. Do you have a blog? If not, you can also shoot us a quick email with your investment strategy or other experiences you want to share. Non-binding of course.


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