Savings rate April 2022 — Chronicling my percentage of net income saved from working, dividend investing, and blogging. I saved 51% in April 2022. I am not a licensed investment advisor and this post is not investment advice. All opinions are my own.
Regardless of how much money you earn, your savings rate is the most important factor in determining how fast you will reach financial independence.
Simply put, an individual who earns $2,000 a month but saves 50% of their income is closer to financial independence than someone who earns $4,000 but only saves 25%. This is because the person saving 50% requires less to live on. In the scenario above, the first individual requires $1,000 per month while the second person requires $3,000 per month.
Since my savings rate is such an important factor in determining when I will reach financial independence, I prioritize it by challenging myself to save more.
Hence why I chronicle my percentage of income saved on a month basis.
In this post, I will share my percentage of income saved in April 2022.
Let’s dive in.
Savings Rate April 2022 — 51%
I saved 51% of my net income in April 2022.
This was up by 28.26% compared to my savings rate in March 2022. I more than doubled my savings rate over last month.
Compared to April 2021, this represents an increase of 29.61%.
Furthermore, this is my highest savings rate since September 2021, when I saved 50.42.% of my income.
Ideally, I want to save at least 50% of my income every month. This rate is where I want to stay for the remainder of the year. However, it will be challenging with the summer months approaching.
Income Sources In April 2022
As usual, I saved income from three sources in April 2022: my job, dividend investing, and blogging.
The bulk of my savings is from my job. I have been fortunate to pick up a lot of extra hours as of late to boost my savings. I am fortunate to have a job that provides that opportunity. It’s especially nice to be able to earn more while the stock market is down.
As for dividend investing, I saved and reinvested 100% of the $102.74 that I earned in April 2022.
Related: Dividend Income April 2022 — 143% YoY Growth
Otherwise, I saved 10% of my blog income during the month. I am holding off from increasing this rate since I expect my blog income to decrease now that I am not writing keyword articles.
I am trying to retain earnings to pay for blog expenses incase my blog income drops significantly.
Looking Forward To May 2022
Considering that the stock market is down considerably so far in May, I want to keep my savings rate as high as possible.
In turn, I will have more capital available to allocate to discounted stocks.
Based on my budget projections for the next two paydays, I expect to save 52% of this week’s pay, and 17% of my final pay of the month. This works out to 34.5% combined.
Obviously, I would prefer to be closer to 50%, so I will try to push my savings rate if possible.
But for the time being, I will set my target savings rate at 35% this month. I will consider anything less than saving 35% to be a failure.
Final Thoughts — Savings Rate April 2022 — 51%
In summary, I saved 51% of my net income in April 2022.
I view this month as a success, as a 50% savings rate is my ideal target rate.
Moreover, this was up by 28.26% compared to my savings rate in March 2022, and 29.61% higher than my savings rate in April 2021. In fact, it was my highest savings rate since September 2021.
Looking forward to May 2022, I am aiming to save at least 35% of my net income.
Related Posts To Check Out
Savings Rate Report March 2022 — 22.74%
Percentage Of Income Saved In September 2021 — 50.42%
Dividend Income April 2022 — 143% YoY Growth
I am not a licensed investment or tax adviser. All opinions are my own. This post may contain advertisements by Monumetric and Google Adsense. This post may also contains internal links, affiliate links to BizBudding, Amazon, Bluehost, and Questrade, links to trusted external sites, and links to RTC social media accounts.
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Dividend Income April 2022 — 143% YoY Growth
