Fifty percent. That’s how much less I spend during a lockdown. Spending less money equals saving more money. While we are staying home, I am saving 30% of my income. I could save more if I paid myself more. Let me explain why.
First, a few words on my spending. I usually spend 200 euros on bills, such as power, heating, water, and internet. Then, in a regular month, I spend 250 euros on restaurants, 220 on various spending, and 420 for groceries. That comes down to almost 1,100 euros per month. During a lockdown, utility bills keep on coming but we haven’t eaten out or had food delivered to us for 40 days now. We cook a lot more, minimized various spending, and cut grocery spending in half. These days I spend 600 euros less each month compared to previous months or last year’s springtime.
Now, as a small business owner, I decide what I am paying myself. Usually, my salary is exactly my expected monthly costs. I do this to exercise saving some money. I do my best to always save just a bit every month. If I don’t manage to save money, it’s not the end of the world, but I like the exercise.
The rest of my company’s income is reinvested in my web publishing business, as the returns usually outperform investments’ growth rate. A website may bring a lot more money than the stock market in the next ten years, for example. From time to time though, I pay myself a bit more to build an emergency fund or take a gamble on the financial markets.
Compared to my regular salary, nowadays I’m saving at least 30% of that by staying home. I am still allocating funds for medical expenses, car insurance, and school, but saving for a vacation doesn’t make sense currently. So, even more money saved. If lockdowns hadn’t already made me read more and improve my skills at home, they should have at least forced me to cut down my spending and save money. If not now, when?