Twenty One Months and Counting On the ERE Journey…

by Vinaya HS on July 16, 2012

in Finance

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Thought I’d post a quick progress report 21-months into my ERE-journey.

The first chart shows how volatile my monthly ERE-savings have been over the past couple of years. It’s been super difficult to maintain a steady savings rate.

ere_21_month_chart

But, on an average, my monthly ERE-savings stands at 44%. (Total ERE-savings ÷ Total Income = 44%.) Not a bad figure to achieve over a 21-month window. But I do wish that it were above 50%!

The next chart shows how my ERE-savings have grown (new savings added each month plus any interest earned) over the past couple of years. There was actually a dip during one bad month.

ere_21_month_chart_2

An 80% growth from where I started isn’t all that bad but then again I do wish that it were a 100%. I think I’ll reach the 2X mark over the next 3-months (and before the 24-month mark is up).

Wish me luck and thanks for all your support and encouragement along this journey. I’ll constantly share my learning as I enter a new phase on this journey.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

{ 6 comments… read them below or add one }

Rakesh July 16, 2012 at 9:27 PM

@Vinaya,

Amazing, 44% is good too, way to go…..

Vinaya H S July 17, 2012 at 1:50 PM

@Rakesh –

What really has surprised me during this whole exercise is my inability to keep that rate uniform or at least bound within a small range (say 40% — 45%).

There simply is too much variability…

Siddhant July 18, 2012 at 3:23 PM

you should also analyses the tax component you are paying , over time it should come down because you should be paying less taxes on your 2nd income, if this is not happening you are donating your money to Nobel prize winning Fraudsters of India…… which you must avoid

Vinaya H S July 18, 2012 at 6:38 PM

@Siddhant –

Good point. I’m not tracking this in fine detail right now (I know I should!). Just adding-up what I owe and paying that as a chunk of self-assessment tax.

Siddhant July 19, 2012 at 9:18 AM

What you should do is you should create an HUF with you as karta & make this ERE funds through that entity this will lower your tax burden & increase corpus by minimum30%…..

Vinaya HS July 19, 2012 at 9:52 AM

@Siddhant –

Looks like I have quite a bit of reading up to do on the concept of a HUF. Thanks for the guidance. Much appreciated.

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