August was my first month on the new job. As a result, I had more disposable income than in any previous month. You would think that because of this (and because I’m so frugal :)), my savings rate would reach an all time high! Unfortunately, this was not the case. Actually, August proved to be the most spendy month to date this year. What happened?
Well, many things. To start, I spent a few hundred dollars at Home Depot and Lowe’s, purchasing items for the new rental apartment. These expenses are a one time deal, so they shouldn’t carry over to next month. Still, I will have to allocate some money for repairs, and maintenance every month. Ahh, the joys of home ownership 🙂
I also indulged a bit this month and purchased a new $500 IPad (retina display). Since I am an Apple shareholder, I figured I would do my part and support the company! No, what actually happened was I was being clumsy, slipped and dropped my old IPad 2 to the ground (concrete). The screen shattered instantly, rendering it unusable. Although I try my best to be frugal, there are still certain niceties, I admit, I am guilty of consuming.
Food expenses were up this month as my family and I celebrated my Grandma’s 91st birthday. Again, I try my best to save as much money as possible, but there are certain events in life that are simply worth the extra cost. I wasn’t going to hold back on this occasion, so we opted to order some of the more expensive entrees from the dinner menu. The entire family had a great time and it was a very memorable experience! Only my wallet was unhappy, but that isn’t a big deal. I’ll just do my best to reduce the grocery bill next month.
Generally, I aim to save about 70% of my earnings. For this month, I was only able to achieve 42%. Hopefully, August was just an aberration, and I will be able to return back to my thrifty ways in September. I guess the underlying point I am trying to make is – life happens. Investing, being frugal, and constantly striving to achieve early financial independence is the end goal. However, we shouldn’t forget to celebrate and embrace life while on this journey 😉
Here is an update on the dividends received this month: