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With my investments and economy tanking I've become even more diligent with trying to pare costs and tracking year over year expenses, and expenses to budget, etc. I am certainly not helping the economy recover with my miserly ways but it gives me some solace that I don't really need to make any adjustments to spending in this difficult time. Also, I figure I have about a 50/50 chance of retaining my job as my employer has been hit somewhat hard with the downturn.
Anyways, I was playing around with my calcs and noticed that it takes me 3.6 months to save one year of expenses. In other words after my take home (ie after taxes) pay less expenses, every 3.6 months I am able to save one full year of expenses. My expenses do not factor in taxes I should note - it is simply my monthly recurring expenses....not quite a survivial budget but close to it. I do not factor in taxes as part of my expenditures because right now these current savings are simply in cash so if I had to draw on them to meet expenses they would not incur any taxes. For example let's say you save 5K a month and expend $20K in a year, then your ratio would be 4 - it will take you 4 months to sock away one year of expenses. Conversely you could also look at how many years expenses do you save in one year of savings but I prefer to check this ratio on a monthly basis.
Just curious if others have figured out their numbers like this...or maybe I just have too much time on my hands.
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