EK AU Net Savings Rate (MAR23)

EK AU Net Savings Rate (MAR23)

We have created a preliminary Net Savings Rate as of 13-MAR-23 to see how far we are from our target by JUN23. Interesting enough, we’re at 32% to-date, with 33% to go to reach our target NSR of 65%, but with different allocations. We’ve included our ATO Refund of 4K, increased our contributions to ESuper by 3K, and will try to save Kathy’s whole net bonus payout by JUN23.

We should’ve increased our NSR by 4K since our ATO Refund of 4K wasn’t in our original budget, but it’s offset with additional unbudgeted household expenses including purchasing a new workstation for our family, added 4-electrical outlets in our apartments, and uptick in expenses to account for Kathy’s family living with us for about half a year. Would be great if we can still achieve our initial target NSR considering the increase of inflation and interest rates throughout the year.

Next year would be very interesting since our 2-year fixed interest rate will be switching over to variable rate. With the increase of the interest rate, that would increase our monthly MI repayments, but I wouldn’t expect for that much of an impact as we have managed to save and put away 150K into our mortgage offset account to reduce our monthly interest payments. We’ll know more accurate amounts by OCT23 and we’ll readjust our financials then.