March 2020 Savings Rate
/
Amidst the turmoil of the COVID-19 pandemic 🦠 we’re facing, I’m so grateful to be on this journey to financial freedom. My savings rate increased dramatically from February due to several factors, which I go into detail below. I think now more than ever, it’s apparent that in order to weather the test of unexpected emergencies 🚨, it’s vital to save, and invest, and plan financially for whatever may come.
In other pandemic revelations, I’ve also discovered the deep, deep black hole that is TikTok. Honestly, I feel like I need to step away from my 📱, lest I start creating them myself HAH. Anyway, here’s more deets on this month’s savings rate:
March Income: $6,705.21
I have to count my blessings because prior to the coronavirus situation, I took a 40 hr/wk contract for 1 year. I’ll admit, I had some reservations, but I’m so grateful to be gainfully employed during these times. The universe truly provides. 🙏✨ So far it seems promising that it’ll continue and they won’t just end the contract early.
Prior to March, I was 💯% freelance designing and it would have been EXTREMELY stressful to not have this job. Although I had some invoices paid this month, I still have about $5,000 outstanding, no small change! 🤞Crossing my fingers they get paid in April…
💰 Paycheck: $4,653.31
👕 Resale: $16
👩💻Freelance: $2,000
💵 Cash Back: $0
📈Interest: $28.84
🎁 Gifts: $0
📈Dividends: $7.36
March Expenses: $1,201.84
Since we’re all sheltering in place, I haven’t been going out for drinks 🍸 or brunch, I haven’t filled up my gas tank ⛽️ or traveled, and my $213/mo Equinox 💪 membership is on pause. Because of these atypical circumstances, my expenses are wayyyy down—about $1,000 less than last month.
I’m still paying rent for my LA spot for the next 3 months until my sister sublets my room. Fortunately, since I’m currently living with the rents I’m not paying double rent PLUS I also get meals here! (I still help cook and clean, but it’s a very lucky situation.)
🏡 House: $950.00
💡 Utilities: $249.95
🚕 Transportation: $0
🥦Groceries: $0
🍽 Food: $25.57
🍹Drinks: $0
💻 Work: $161.33
🎥 Entertainment: $0
✈️ Travel: $20
🚙 Car: $0
🏥 Health: $152.69
🛍 Shopping: $0
🎁 Gifts: $0
Misc.: $0
March Savings: $5,275.89
Since I boosted my income dramatically this month, I’ve been able to save and invest despite this recession we’re in. I maxed out my traditional IRA for 2020! 🎉 Contributing to a traditional IRA is an optimal strategy when achieving Financial Independence 🔥, but I didn’t realize a key 🔑 detail. I make too much.
Honestly, it’s a blessing 🙏of a problem to have, but it negates the effectiveness of contributing to a traditional IRA. I potentially should have just contributed directly to a Roth IRA. I’ll have more details on my oversight in a future post and I’ll update with a link here once I put it together.
Starting in April I should have access to a 401K. I’ve run a few calculations and I think I’ll be able to contribute 65% of my paycheck while still making enough to pay my living expenses. I potentially can stretch that to 70%, but I’m planning on putting 65% and then adjusting.
401k: $0
HSA: $0
IRA: $4,000
Emergency HYSA: $5.00
Travel HYSA: $30.00
Big Event HYSA: $30.00
Brokerage: $0
Checking: $1,408.37
I’m finally making progress on increasing my yearly savings rate. Since I’ve been cooped up inside these last 3 weeks, I think I’ve spent way too much time trying to optimize my savings. 😂Going to start watching that crazy Netflix docu-series, Tiger King. Hopefully, that will keep me occupied for a bit instead.
xo, Catie
Disclosure: Some of these links are affiliate links, meaning, at no additional cost to you, I may earn some compensation. All opinions are 100% my own! I truly appreciate you and your support. :)
