I skipped December’s numbers, but I want to get back into it. What better month than January to get back on track? We tried to be very frugal with our grocery spending and personal spending money (more on that in another future post!). I’m quite happy with the results, but our savings rate for the month is still very low due to some large expenses. OK, let’s go to the numbers!
January Mortgage Numbers
We can pay an extra 10% of the original mortgage balance per calendar year in extra payments and we hit that number in September of last year. January is the start of the new year so that means that we can make extra payments on the mortgage again! That made us very excited and motivated to get going again. We transferred the first extra €1500 in January. That leads to the following results:
|Interest Only Mortgage||€97.288||-€1500 change from last month due to extra principal payment|
|Annuity Mortgage||€108.447,41||– €202,11 change from last month, just the regular payment|
|Linear Mortgage||€5.207,31||-€14,79 change from last month, just the regular payment|
|Savings Mortgage*||€80.000||No change|
|Savings Balance Attached to Savings Mortgage||€14.596,49||+€194,34|
|Total Mortgage inc. Savings in Savings Mortgage||€276.346,63||– €1.911,24|
The original mortgage balance was €380.500. This means 27,37% of the mortgage is now paid off (0,5% increase from last month)
* The €80.000 mortgage remains outstanding until the end of the 30-year loan. Attached to this mortgage is a blocked savings account where you save for 30 years and receive the same interest as the interest rate that you’re paying on the mortgage. After 30 years there is €80.000 in the account and you pay the mortgage off.
January Savings Rate: 10,1%
Savings Rate 2018 Year to Date: 10,1%
Our savings rate in January is very low because we paid our health insurance premium for the entire year. The premiums were close to €2400 so that took a considerable portion out of salaries. We also booked our flights for our summer vacation (€650), so I’m happy that our savings rate is not negative considering all that. The upside is that we won’t have to pay for health insurance for the rest of the year so that should help with our savings rate going forward. I still hope we can get to 40% savings for the year, so we have some work to do!
** To calculate our savings rate I deduct everything that we’ve spent in a month from our income. Divide that number by our income, and that gives us our savings rate. Not included in the savings rate are pension contributions because those happen before taxes and are mandatory in our case. I also don’t include our regular principal payments.
We added 5,35% of our income to investments this month. We are focusing on the mortgage first, but we do some investing each month as well.
That sums up January 2018 for us. Did you get off to a good start for the new year?