Author: Mr and Mrs 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. We post any articles about our money savings choices or habits here.
December 2016 Savings Update
Regular Income: $6,747
Blog Income: $102.84
Total Income: $6,850
Savings rate: 30.1%
Savings rate including Superannuation: 30.1%
(We count superannuation savings when a payment is actually made, usually every 3 months).
The final month of the year was great income-wise, we also had a lot higher expenses but this was covered easily by the extra income we’re now receiving.
Dividend income – Nothing again last month, but there will be an amount here this month.
Regular income – We were happy with this month’s income which should hopefully be around the norm going forwards.
Blog income – We finally received our Google Adsense money of $102.85 which was exciting to see it hit the bank account. This is enough to cover our hosting so we’re happy with that.
Annual public transport – We paid for Mr DDU’s annual pass this month, which came to around $1,500. We save around 10% by paying annually as opposed to monthly (which is cheaper than daily). It’s a lot upfront but worth it for our annual budget.
Further education – We got a surprise extra cost relating to Mr DDU’s further education which we weren’t expecting. It was $656, which we could cover but it was a little annoying to have to pay it. No exams yet, but that will happen soon!
We’re very happy with our savings rate considering the above large expenses. It was a pretty good end to the year and it’s looking really positive for our money in 2017.
Our next post will be a year-end summary of our yearly savings rate and our 2016 calendar year’s dividends.
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 December finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!