Author: Mr DDU.
We are big believers in living below our means; spending less than we earn. We try to only spend money on what is essential or makes us happy. Nearly everything society spends money is fleeting: food, holidays, a movie ticket etc. Most of it is forgotten about by the next day and we look to the next thing to keep us entertained.
Every month we track our income and expenses to see how much we’ve saved/not spent. This helps us to see how we’re going, as well as motivate us to continue saving. Hopefully over time, our savings rate will increase allowing us to invest even more.
We want to show that even on a modest income, it is possible to save hard, invest and become financially independent.
May Savings Update
Other Income: $4,541
Total Income: $4,604
Normal Expenses: $2,259
Savings rate: 50.9%
Well look at that, our first 50+%. The main reason we managed to achieve it was because there were 3 pay days this month, but it counts nonetheless. We even included the eat-out food we ate for our IVF trip.
We’re extremely pleased with 50%, after 7 months we have finally got one. We have upped our supermarket spending, but removed takeaways and eating out, so that we’re eating as healthily as we can. This should just about even out, but we don’t mind if we spend a little more. We’ve taken advantage of when meat is on special at Aldi (and it’s cheap anyway).
We have a question for you, Aussies in-particular – at the moment we don’t include superannuation contributions in our savings rate, but should we? Although it doesn’t hit our bank, we are saving for our retirement with it. Do Americans include 401K / IRA contributions in their savings rate? – If they do, are we doing ourselves a disservice by not including it?
The 3 key factors for us to become wealthy are:
- How much we earn
- How much of our earnings we save
- How hard we can make our savings/investments work
These monthly savings posts will track how good we’re doing with the first 2 factors.
What were your May finances like? Should we include superannuation contributions in our savings rate?
Thanks for reading this article about our investing journey Down Under.
Onwards and upwards!