Savings Rate and savings percentage and how to calculate it

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We have talked a lot about expenses already and defined the neat KPI L12M_avg_exp. Now we want to go a step further and compare our income and our expenses. To do this, we have to understand income. So what is income? Income is all the money that you get/receive on your bank account on a
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One might think, what is so bad about monetary scarcity? What is so bad about having no savings? What is bad about living from paycheck to paycheck? After all, I want to live today and want to spend the money that I have before I die. What is the point of having tons of money
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Buying stuff is fun. Of course it is. But it is not source of happiness. At least it should not be. And if it is a source of happiness for you, maybe it is time to change that. If you want to become a financial unicorn and a real member of the financial unicorns club,
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One difficulty with evaluating the monthly expenses is often cash expenses, meaning stuff you pay cash. If you buy stuff with cash in a supermarket you can of course collect all the receipts and keep them at home in a box. At the end of every month you can then add together all the numbers
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In the first blog posts I described how you can assess your expenses. You simply added together your expenses for each month and wrote them down. Starting with the first month. So let us say you did this now for several months and you got something like this: March (last year) = 2345 EURApril (last
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So you have now written down your expenses for the last month according to the last blog post but you are thinking “hey this is a lot of effort, why should I do this nonsense?” The answer is simple and difficult at the same time. Because it is your life, it is your money and
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I am aware of my expenses and income and write it down at least monthly. I dont need to write down anything, I have everything in my head. I dont care about money. It is just a means to an end. If the first sentence describes you then you already achieved the first step to
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A blog about financial unicorns, a club? Where did I end up? – is maybe something you might now ask yourself. It is all not that difficult. This blog is about finances. We will go together on a the journey of becoming a financial unicorn which means understanding money and everything it entails. You will
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