October 2019 Savings Report

A look back at saving and investment performance up to October 2019

October 2019 Savings Report

This is the second in our new Savings Report series. Savings Report for September 2019 was the first, and you’ll be able to get them all at the best of Money Mage

This month has two new additions: Savings Rate and Towards FI.

Savings Rate

I will be computing two savings rates.

Savings Rate (SR)

SR = S / I

This is how I’ll be computing our Savings Rate going forward. However, it misses a big portion of our savings. We both invest in our pensions for tax efficiency.

Savings Rate inc. Pension (SRp)

SRp = (S + SP) / (I + SP)

This computes our Savings Rate (including Pension Contributions). Our Pension Contributions are made gross. To fairly account for the tax benefit, our pension contributions are included alongside of our net income (I).

October 2019 Savings Rates

Date SR SRp
October 2019 65.9% 73.4%
September 2019 70.5% 73.7%

Towards FI

Our Financial Independence number is quite conservative.

As I’ve said before, FI yet alone FIRE seem a very long way off. We don’t particularly have any strong desire to retire before 55. We do have a strong desire to be Financially Independent well before then.

We’d be looking at 3% drawdown. And a 60% increase in current monthly expenses to provide a healthy buffer. And to enjoy life.

Given some of our net worth is illiquid, there are three figures provided:

I’ll revisit this, probably next month.

I’ll try to consider a more realistic ‘liquid bridge’ before our Pensions can be accessed. I’ll also try to include some predicted growth.

I expect the numbers will come down given this.

Date FIh FIp FI
October 2019 4.9 13.0 17.6
September 2019 5.0 13.0 17.7

FI Good News

Whilst these numbers probably look quite bleak in the FI/FIRE community, the MM-household is quite conservative.

Lower risk taking. Safe hands.

We both want to be well on the way to FI by age ~40. That looks to be on track at least! Though you never know what’s around the corner!

October 2019 Recap

October has been another good month. We have settled down our expenses after refurbishing the hallway earlier in the year. Back to our usual ~£1k/month.

Going Well

Should do better

October 2019

October was hit by some poor performance in two pension funds. They were both down. No mind. We can buy units more cheaply.

Month on Month net worth increased by 0.66%, and Year on Year is at 21%.

Type MoM% YoY%

Asset Allocations

Here you can see asset allocations this month compared to October 2018.

Whilst equity exposure appears very low, all pensions are in global trackers funds. Investment in equities is almost solely via pensions.


This chart shows our net worth growth since the other-MM started work and I graduated.

A bit of a bump the last couple of months with a change in my job. This meant reduced pension contributions during probation. I expect it to start trending back up into 2020.

Whilst we’re mortgage free, and on the path, FI let alone FIRE still seems a very long way away. Subscribe for more. Subscribe now and follow me on Twitter @moneymagery. I hope you like the charts, I am a fan of Tufte*.

How is your journey to FI going?

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