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Happy fall, everyone!
While my Instagram feed is full of copper hues, fall decor and pumpkin spice everything, I’m still sweating in the 80-degree heat of the East Tennessee valley. I usually get a little sad when summer ends, but this year I’m ready to move on to cooler weather.
As for September, it was such a fun month!
We attended three UT home games (though I wouldn’t call UT vs. FL a game. More of a slaughter). We had a great time at a Kaleo concert at the Tennessee Theatre. It was my husband’s first concert other than a Journey tribute band we saw at Cotton Eyed Joe’s and an Insane Clown Posse concert that my parents and I dragged him to last year. Being a narcotics investigator, let’s just say he was a little out of his element there.
And as usual this past month, we ate out like crazy. We just love to eat.
Though I’ve posted a savings report at the end of each month since we became debt free at the end of January, I feel like this one is my first real one.
I did consider the money we spent on our major purchases those seven months to be savings. The reason for this was because we were very intentional about living on $2400 per month while using the money we earned above that – our “savings” – for splurges.
After all, how long does one have to hoard money before spending for it to be considered savings?
But September was different because the money we saved is still in our savings account and will be for quite a while.
If you’re new to my blog, I’ll share what we’re saving for and how we’re doing this. If you’ve been with me for a while, feel free to scroll past the next few paragraphs.
As of September 1, we are saving $100,000 to purchase our first rental property in cash. You can read my announcement of this goal here. We paid off over $77K in mortgage principal alone in 17 months, so we should be able to swing our new goal in two years or less.
The way we’re doing this is very similar to the way we approached paying off our mortgage. During that journey, we lived on the higher of our two incomes while using the lower income solely as mortgage principal payments.
As soon as we made our final payment and became completely debt free, we switched and began living on less than the lower of our two incomes. We now live on and base our budget – including our bills, sinking funds and spending – on $2400 while saving the rest. You can view our budget here.
Let’s break down how much we were able to save during our first month of this new goal.
In September, I received four weekly paychecks of $888.79 each for a total of $3,555.16.
Ron received two biweekly checks. One was $1,374.96 and the other was $1,359.41. He also received a backpay check for $226.80 due to a raise he recently received.
Add the $6.95 that our Ally savings account earned in interest, and we brought home a total of $6,523.28.
Since we live on only $2400 per month, we were able to save $4,123.28 toward the future purchase of our first rental property!
That means we lived on 37% of our take-home pay and saved 63%.
Not bad, huh? We are right on track to hit $100,000 in 24 months. Only $95,876.72 to go!
I cannot begin to tell you how good it feels to be saving toward another major financial goal. Doing home renovations, taking our first international trip, buying a new lawn mower and a new truck – all of that was fun, but none of that compares to saving for our first cash flowing asset. (Okay, maybe the trip to Russia compares.)
Are you working toward a major financial goal? I’d love to hear about it! Let me know in the comments below or find me on Instagram!