We’re a little late with this update. Our free time seems to be at a premium lately.
Building off last month’s post, we are continuing to share our monthly savings rate. We noted last time the variability in our savings and the trend continued this month. Our big expense for April was a $3,868 payment straight to the IRS. Ouch! But at least it’s better than the $8K+ we owed last year.
Even with this rather large tax bill, we stayed in positive territory. In reality, our savings was higher than I expected. In mid-April, I purchased five plane tickets to Chile for a trip we’re taking in July.
Or so I thought.
I had been staking out airfares for several weeks and noticed a fairly large price drop one day. A round trip was listed for just over $600 per person, nearly $100 cheaper than I’d previously seen. I pounced on the offer and there went $3,000. A couple weeks prior, I had opened a Chase Sapphire Preferred credit card to earn travel rewards specifically for this purchase.
When we were compiling our expenses for this post, I noticed the airfare charge was nowhere to be found. Confused, since I’d received a confirmation email, I called the travel site’s customer service line. After speaking with an extremely rude representative, I learned that the transaction never went through and our tickets were not booked! WTF?!?
I was not happy to say the least. It looks like this huge expense will get pushed to May. Hopefully I can find a good price… again.
Back to our savings rate… aside from paying Uncle Sam, our income and expenses were fairly normal. Check out the chart below to see how we’ve been doing since December 2015 when we really started tracking our savings in more detail.
As you can see, we saved about 16% of our gross income. Subtracting taxes and including mortgage principle payments, it jumps up to 32%. Not bad considering the circumstances. This month we’re sure to see another drop in savings. In addition to the Chile tickets that still need to be purchased, I’ll miss out on one of my normal paychecks. I’m currently in the middle of my two-week reserve annual tour and likely will not be paid until sometime in June. Hopefully our May cash flows will stay out of the red, but I’m not holding my breath!
Year to date, our combined after-tax savings rate including mortgage principle is 61%.