Evaluating One Bad Month’s Numbers

I am going to be honest, July was a brutal month when I look at my spending and my resulting savings rate.  Twice per month I automatically transfer $250 to our savings account.  This helps to make sure that no matter what I am putting some money away.  At the end of the month I will transfer any additional money over into savings.  Well when the end of July rolled around I had no money left to transfer.  My heart sank a little as I looked at my dismal savings rate of only 26%.  Last year I saved an average of 42% of my take home pay and yet here I was saving only 26% of a much higher amount.  WTH?  Has lifestyle inflation really gotten the better of me?

When I got my promotion last fall initially thought I would be save almost 100% of of my raise which would amount to a nice little sum of money by the years end.  Yet it appears that lifestyle inflation has hit me a little as I am not saving as much as I should/could be.

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