Slowly, but steadily increasing. 

October was an extremely successful month in terms of our finances. We increased our savings rate well above 65 %, the best result ever (see page savings rate)! Our average rate for the current year now stands at 55.2 %.

But most important, my family and I have a great time. Being more conscious regarding our resources and our spending habits intensified our focus on meaningful things in life and gradually transforms it even to the better. Over and over again we are making the experience that a down to earth lifestyle makes much happier than costly habits. Read more… »

While the Jaws Ratio is commonly used in corporate finance and security analysis, you rarely hear or read about that measure in the context of personal finance. This is to some surprise, as households – like businesses – have to manage their economic resources and taking into account various financial risks and (life) events. Almost everyone has money issues – companies and people alike – so why not use that concept to increase your personal savings rate to put you in a position to make more of the money you earn?

First, I want to show you what that Financial Ratio stands for, how it is calculated and then – and this is most important – how you can benefit from knowing that concept.

Read more… »