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  • Writer's picturethemoneyloaf

Splitting my pay in 2022

Unlike many in the FIRE space, I don't track my savings rate monthly, but instead I set an annual savings goal.

Splitting my income intentionally is one of the points in my blueprint to financial independence, I typically divide my pay into different buckets and more or less stick to it throughout the year.

However looking while planning ahead for 2022, I have a feeling I'm going to need to adjust this more dynamically or it's gonna be hard to meet my goal of investing 60% of my income next year.

I have to admit I have conflicting feelings about this - on one hand I'm aware it's such a privilege to be able to save 43% of my pay and not have to worry about basic necessities.

On the other hand I feel frustrated that I'm not able to put aside at least 50% without affecting things we enjoy. Sometimes I wonder if I'm taking this FI thing too far?

That said, in tallying up our 2021 figures, we definitely went overboard with small conveniences like food delivery and ride sharing this year, which all added up. If we can keep that in check in 2022, hopefully that will free up some extra funds that can be deployed elsewhere.

How about you? Do you work up a fresh budget every month, or do you have an overall target for the year and navigate towards it?

Just for reference, this is the breakdown of the categories:

  • Fixed expenses -> taxes, insurance, some money for my folks

  • Joint -> our shared food, home and travel expenses

  • Personal -> food, going out, clothes, games etc

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