The "Save 12k in 2016" Thread!

boglehead

Dird wrote: »

The view I'll take is that all cash counts except dividend payments from shares. Hopefully I'll get a Euromillions win & have the highest ever amount on these threads
If I decide to invest in a S&S ISA in 2016 then I'm going to count the lowest of either the money going in (monthly) or the state at the end of the year. e.g. if I invest £100/month and it's at £800 by the end of the year then it's £800 savings; if it's valued at £1500 then it's £1200.

Well, this is not really tracking savings per say. Interest or capital appreciation, or regular mortgage payment (capital repayment part only) are contributing to your networth increase, but arent considered savings, as it doesn't measure any effort of putting money aside like putting money on a savings account, investing in an ISA or brokerage account, or overpaying you debt/mortgage.

For example, my NW increased by 25% in 2015, but only 11% did come through savings, investment in brokerage account and debt repayment (ex mortgage). As a result, i only accounted for that 11% on the tracker.

Buffythedebtslayer

I am counting all the money I don't spend?

I suppose that means I shouldn't count the zopa money as it is "spent" and actually I can't get hold of it.

interesting. Still since I am starting at 0 it doesn't matter

Dird

boglehead wrote: »

Well, this is not really tracking savings per say. Interest or capital appreciation, or regular mortgage payment (capital repayment part only) are contributing to your networth increase, but arent considered savings, as it doesn't measure any effort of putting money aside like putting money on a savings account, investing in an ISA or brokerage account, or overpaying you debt/mortgage.
For example, my NW increased by 25% in 2015, but only 11% did come through savings, investment in brokerage account and debt repayment (ex mortgage). As a result, i only accounted for that 11% on the tracker.

I'm not sure what part of my message you're responding to for some (e.g. mortgage) but someone on here said you subtract your balance on 01-JAN from 01-FEB which would include interest. Personally I don't just see saving as how you avoid spending (no takeaway this weekend) but how you choose to maximise it (4-5% CA rather than leaving it in a 0.01%). Cashing out shares would be awkward to include though as they may have been invested years ago & taking the current value is also dodgy as it would have changed by the time you finished writing your update

But then I have to be cute with my definition as my target assumes being able to generate £3-5k additional income :P

Mortgage repayments are a compulsory expenditure; unless you count only OPing I don't see why anyone would count that

bobobski

Buffythedebtslayer wrote: »

I am counting all the money I don't spend?

I suppose that means I shouldn't count the zopa money as it is "spent" and actually I can't get hold of it.

interesting. Still since I am starting at 0 it doesn't matter

I don't know much at all about zopa but I guess you could treat it as buying shares, so the "dividends" (interest) counts as additional income and if you don't spend it then it counts?

Personally I will be using completely separate accounts and only counting money going in there, rather than also including the money remaining in my current account just before pay day ("the money I don't spend"). I.e. I'm only counting money designated as savings. Then if I have to dip into it, that is a negative savings sum, so is subtracted from money put away. I have no idea if that makes sense?!

mummytummy

bobobski wrote: »

....I'm only counting money designated as savings. Then if I have to dip into it, that is a negative savings sum, so is subtracted from money put away. I have no idea if that makes sense?!

Perfect sense to me that's what I do

boglehead

Dird, I agree with your approach, thats how I account for it on that tracker.

I also have a networth tracker that i update every month. I find both tools very motivating, and it really helps me keep focus toward my early retirement goal.

TheBanker

Can I join you please? Aim for £12,000. Eeek that's a big number!

Dird

boglehead wrote: »

I also have a networth tracker that i update every month. I find both tools very motivating, and it really helps me keep focus toward my early retirement goal.

I forgot to ask in the last reply...If +25% but only 11% from savings, investment in brokerage account and debt repayment where was the rest from? I guess 14% wasn't all mortgage payments?

amyt13

I'd like to join for £6k!

Marcus_C

Can you count me in please, joining for £7k