The first month of the second quarter is over. The Dividend Income Report has been published and now it’s time to take a look at my progress report for April. Despite the busy season, I’ve made consistent progress towards my financial goals. My personal goals need some work, but Rome wasn’t built in a day. Like anything else, consistency and determination are important attributes to have. There will be times that I stumble, but I just have to pick myself up and keep going. Sometimes the journey is just as important as the destination. In my journey, you’ll see that I’ve adjusted how I calculated my savings rate and I’m sure I’ll continue to make adjustments in the future. But, rather than divulge any more spoilers, let’s just take a look at my progress report to see how I’m doing.
Student Loan Repayment
In April, the beginning balance of my student loan was $13806.68. The minimum payment is $97.61 and the interest rate is 2.625%. My goal is to pay off my student loans by October at a rate of $2000 per month.
In April I was able to achieve my goal. I made a $2000.00 payment towards my student loans. The new balance is now $11,806.68.
Unlike March, I didn’t have the benefit of a tax refund to help me with my April payment. My spending was reigned in and so I didn’t overspend as before. Honestly, it’s been difficult to maintain this level of payment towards my student loans. But I think it’s worthwhile. After all, I probably would just end up wasting the money. Once my student loans are gone, I’ll have to find another use for that $2000.
I won’t go too much into it, but because of my buyer’s remorse, I’m not sure if I’ll be able to make my payment for May. We’ll just have to wait and see.
To follow my progress towards paying off my student loans, visit my debt tracker for 2018.
Savings Rate
Consistent with the trend I started in March, below is my savings rate represented graphically. Because I’m still learning, the below graph will update every time I update the graph for the remainder of the year.
Wow, what a difference. My savings rate was a whopping 84% for April! What changed? Actually, nothing really changed that much, except how I did the math. Before, I was making things completed. Now, I’ve simplified the approach to calculating the savings rate.
To do this, I ignore my expenses. Here is my thought process. If my total income is $100, and I save $40 out of that, I can accurately say that my savings rate is 40%. This is calculated by dividing 40 by 100 (and then multiplying that number by 100). I ignore the remaining $60 because that’s what I use to live off of. My previous calculations were faulty, but for simplicity sake, I won’t go back and correct the record.
So that’s how I calculated my savings rate above. A BIG caveat is that I’m including extra payments towards my student loans as part of my savings rate. This will make it easier when I actually devote that payment towards investing. Also, I’m not taking into account all of my income, but truthfully most of it is reflected in the calculation.
Personal Goals
I was hoping April would be the month when I renew my fitness goals. But, it’s been a long time since I’ve been to the gym. Quite frankly, I’m writing this in May and I still haven’t gone. However, I do expect to start working out again around the beginning of June. There is also a possibility I might even start as early as tomorrow. It’s amazing how much my actions are determined by my mood and my mindset. Changing those two things will go a long way to changing my bad habits.
I will continue to blog about my fitness goals as I am hoping it will nudge me back into the gym.
Conclusion
April was a good month. I made decent progress towards paying off my student loans. Also, I corrected my math with respect to calculating my savings rate resulting in a huge increase from last month. I won’t start counting my chickens just yet as some of my savings are actually going towards paying off debt. However, once my student loans are paid off, I can concentrate on saving towards retirement and the savings rate reflected at that time will truly be my savings rate.
Well, what do you think about my progress so far? See any flaws in how I calculate my savings rate? Let me know by commenting below.
That is an amazing savings rate. Great job! Now, hit the gym buddy. 🙂 Honestly, I have been a little lax with my exercise routine too. Tom
Tom @ Dividends Diversify recently posted…The New Millionaires | Concluding thoughts | Part 6
Thanks Tom. Yea, very decent chance I will be hitting the gym soon. I’m hoping my next progress report is not as dismal.
Hi Glen – great progress and congrats.
I like the revised calculation – it also does make things cleaner and easier to track.
On your fitness goals, best of luck. And just go! Once you’re there, you’ll get benefits – even if it’s a crappy workout. I’d recommend also trying Orangetheory Fitness. It’s addicting, but more important, effective. – Mike
Mike at Balanced Dividends recently posted…Passive Income & Portfolio – April 2018 Update
Thanks Mike. Going to the gym is definitely the hardest part. Sometimes on days I have crappy workouts, I still feel better knowing that I went and did something.
Hi there, congrats on saving rate and dont worry abouy the gym. Try lower things for start. For ex do short 5min warmup at home. Im doing such each morning. Its not hard amd become a routine. Trying to get back on running since I was out for +/- 1 month due to har flue I got. Try doing something small but regular. New years resutions are good but 90% dont make it even to the spring 😉 Dont fall back. If you fail at plans this year, there is always the next year 😀
p2035 recently posted…Y2018 Net worth update
Thanks for the suggestion p2035. It sucks because I was so consistent and I felt like this time was going to be different but life got in the way. I’m not giving up though.
No one said anything about giving up 😉 Just start with lower expectatations and go slowly but steadily up
p2035 recently posted…Y2018 Net worth update
That’s the plan p2035. Hoping that can happen by next month’s report.
Ou and you dont need to change mood and mindset. Mindset will be enough as you mood will change with is automaticly 🙂 Cheers.
p2035 recently posted…Y2018 Net worth update
hahaha fair point.
Fantastic work on the savings rate, that is really good. Keep up the great work.
Thanks BHL. I doubt thought that it will be that high in the upcoming months.
DP, Holy Hell that savings rate!!! I see you paying off your student loan debt and it inspires me. I go back and forth whether or not I want to put a hold on my investing and start paying off the mortgage. I think once you get under $10K your fire to pay off that loan will burn even more. I try to wake up and get my workout complete in the morning time. It isn’t easy to get out of bed, but feel soooo much better once it is over and done with. Like the Nike slogan, Just Do It!
Money Hungry recently posted…Dividend Income April 2018 (and Denver Travel Recap)
I know. It’s a great slogan, but very hard to do. I will be super excited to see that student loan under $10,000.
DP –
Excited for May, let me see that figure below 5 digits for he student loans!! YOU GOT THIS!
-Lanny
May is a ROUGH month indeed, but we will see what happens. Thanks for the encouragement.
Amazing savings rate Div Portfolio. It’s easy to focus on the areas that need improvement, but you should absolutely be celebrating your big strengths and the things you’re doing brilliantly – such as your savings rate!
Mood and Mindset are hard things to control at certain times, so just hang in there and I’m sure the tide will turn eventually. You are absolutely not the only one being a bit slack in the exercise department!
Cheers, Frankie
Thanks for the encouragement Frankie. I actually did work out today for literally 2 minutes, but it’s better than nothing.
Your savings rate increase is great! That goes a long way. More money to pay down debt with or to invest. Keep it up!
Thanks Div Daze. I doubt it will always be that high, but I think I can consistently get it over 50%.
Nice savings rate for April. I’m in a similar boat with the student loans a bit more of a balance and terrible 6.55% interest rate – can’t get rid of them soon enough!
Yea. From a purely mathematical standpoint, it made sense to invest rather than pay off my student loans. But, it’s going to feel really good sending in that last check in October or so this year. Hope you get to pay off your loans soon. BTW, I like your name.
Imagine what 2k a month worth of buying power would bring you in a years time. Stay focused and stay the course. We’ll be here cheering you on!
Mr. Robot recently posted…This is my (extra-large) buy for May 2018
Thanks mr robot. Can’t wait to get to that point.
That’s an awesome savings rate for the month, great work! I’ve been trying to get back into shape now too. Future wife recently got a rowing machine so I’ve been hitting that up recently – might write a post about it soon to publicly shame myself into doing more of it and set a goal!
Sounds like a good thing. I will have to get back in the gym next week. But set a goal for yourself and publicly announce it so it gives you extra motivation to get it done.