The Frugal Canadian

A frugal spender seeks to find new ways to save money and increase her net worth.

Wednesday, September 13, 2006

August Savings and Net Worth Update

It was a strong month for me both from a savings standpoint and net worth position. I had monthly savings of $2,890 on the month and a net worth increase of $3,484. I also reached my goal of saving $25,000 in one year in just 11 months.

There is nothing large to report on the expense side of things. On the income side, I prepared a few tax returns for individuals adding $200 to my income. I'm also now averaging $150 per month in dividend and interest income. This continues to grow as my savings and net worth increase.

As mentioned in my last savings update, I had sold some underperforming mutual funds and had yet to reinvest these funds. I bought a position in Proctor and Gamble. I'm still looking to invest another $7,500 but have yet to decide where to invest this.

I must admit when I started this blog 11 months ago I really did not think I'd be able to save $25,000 in one year, but once I got started and changed a few bad habits it became easier and easier.

My key success factors were:
- Limit dining out. I now on average eat out once a week. A year ago, I was probably going out 2-3 nights a week for dinner/drinks with friends.
- Reduce existing monthly bills. For me this included calling the cable company and getting a reduced price, using Skype for internet long distance and shopping around for insurance rates. While it doesn't add up to a huge amount, I save on average an extra $40/month based on changes I made here
- Using PC financial reduced my bank fees and gives me a sizeable amount of interest each month. The more I save, the more money I make whether it's interest or dividends from investing in stocks.
- Blogging my progress. After I started this blog I became much more conscious of my spending and saving because I felt accountable for my results. Each month when I was getting close to my maximum spending levels, I'd tighten my discretionary spending in an effort to meet my goals. Knowing that I was reporting to readers on a monthly basis gave me the discipline to not overspend.