The financial wheels are beginning to turn

By | January 27, 2017

Author: Mr and Mrs DDU.

We are still feeling over the moon after finally becoming pregnant. It’s a great feeling! Though the physical effects for Mrs DDU aren’t all that fun right now.

Now that we’re pregnant we have quite a few things to think about, not just baby things but a few financial things too.

We have been diligently saving away cash for IVF because we didn’t know how long or how many tries it was going to take. Luckily, we were successful with our first full attempt. So what do we do with the money we have left over and the new money that Mrs DDU is earning as an assistant?

 

With the cash we have left after IVF we’ve decided to divide it into the following:

– Some of it for all the baby expenses we’ll have over the next 9 months.
– Bump our emergency fund up into a (just) 5 figure sum.
– Remainder into savings for baby #2 IVF fund and let compound interest help us substantially.

We want to have strong financial foundations. We will be earning a decent 3% interest on any cash savings, so we are willing to have a fair bit of cash.

But what about all of our monthly savings rates going forwards?

Well, now that we’re pregnant we have decided to invest at least $1,000 a month into shares. This is very exciting to be able to have a regular investing plan going forwards from here. In-fact, we’ve already made 3 purchases since becoming pregnant which we will share in posts soon! It has meant our portfolio has finally moved into being 5 digits big.

We won’t achieve Financial Independence in one year, but this is the start of where the snowball begins rolling for us.

After having circumstances against us for so long, it feels great to finally have our baby on the way. Now we can unfold our financial wings and start flying upwards.

 

Thanks for reading this article about our financial journey Down Under.

Onwards and upwards!

36 thoughts on “The financial wheels are beginning to turn

  1. Financial Slacker

    Congratulations on the pregnancy! I know it’s been a long time in coming.

    Quick question, how are you earning 3% on cash? My cash return is well below that level.

    Reply
    1. Dividends Down Under Post author

      Thank you FS :). The 3% is the highest interest rate we can find in an Aussie savings account that doesn’t have a million strings attached, We’re very happy to park our money there, sadly the interest rate does gradually go down lately but is still one of the highest.

      Mrs DDU

      Reply
  2. The Green Swan

    Congrats again! I’m sure you’re both over the moon. And you’re right, now that you’re successfully pregnant there are so many other financial considerations to make. That’ll be great getting into the regular routine of investing again and get a good feel for what expenses are like when the baby arrives.

    Reply
    1. Dividends Down Under Post author

      Thank you Green Swan! It feels so good to be free of our stand-still finances and to get moving, this month is our first month of the full investing plan, so exciting!

      Mrs DDU

      Reply
  3. Buy, Hold Long

    This is going to be a massive year for you guys! Pregnant, $1000 a month for shares, 5 digit portfolio…. the list goes on. Absolutely killing it!

    Reply
  4. Our Frugal Escapades

    Congratulations! You stayed positive and made it happen!

    I think it’s terrific that you are able to put $1000 a month into more shares. If you keep it up, I have no doubt that one day you’ll be looking at a 6 digit portfolio!

    Reply
    1. Dividends Down Under Post author

      Thank you :D. It does feel so good to commit to something and be able to see your hard work pay off. Hopefully we can gradually increase that $1000 per month as well and get to 6 digits even sooner.

      Mrs DDU

      Reply
  5. Tawcan

    $1,000 a month will be huge. A recommendation is to go on a baby-moon before the baby arrives so the two of you can spend some quality time together. If you’re not sure what baby-moon is, look is up. 😉

    Reply
    1. Dividends Down Under Post author

      Very familiar with the baby-moon term haha. We shall see, wanting to save as much annual leave as possible for when the baby arrives.. Maybe we will do a little weekend getaway instead 🙂 . Thanks for the suggestion though!

      Mrs DDU

      Reply
  6. Adventures with Poopsie

    Well done guys. $1000 a month is nothing to sneeze at and your portfolio will grow. I think I started with just $100 a fortnight and now, I have a pretty big portfolio growing everyday. Keep it up!!

    Reply
  7. Doug

    Haveing triplets? 1000 a month is what i try to put into the market. of course there are the months that i take a break to reset and the months like this month that i get 2,000 so it all works out.

    Reply
    1. Dividends Down Under Post author

      Thank you WFT, 5-figure emergency fund might be excessive to some but it really gives us that feeling of security, which is a fantastic feeling. $1k per month is hopefully just the beginning, we hope to gradually build on that as the years go by.

      Mrs DDU

      Reply
  8. DividendFamilyGuy

    If you lived closer I would give you all of my baby stuff. We are officially done and have all of this baby stuff to give to someone in need. I would say if your planning on having another then yes save the money in a fund for it. I have learned saving for goals is the best way to go
    Peace,
    DFG

    Reply
    1. Dividends Down Under Post author

      That is so kind of you, even just the thought/sentiment is so lovely! We have been lucky to get some baby things passed onto us, and we feel very happy to be in the financial position to buy anything else that we need. We do hope to have a second baby later on so we are definitely planning ahead and saving a set small amount monthly to slowly grow over the next few years, we might need to do some intense saving for IVF a few years down the track but any saving we do now will make that less intense in the future.

      Thank you for your support 🙂
      Mrs DDU

      Reply
  9. Jef

    Exciting news guys, looking forward to hearing more updates and wow already putting in for #2.
    I suppose this is what all of the finances and FIRE stuff is what it’s all about :)!

    Reply
    1. Dividends Down Under Post author

      Thanks Jef :). Yeah it seems crazy to save for #2 already, but with IVF a lot of forward planning is needed (or lots of credit card debt.. no thanks). You’re totally right – this is what FIRE is all about, not just the retiring early but the financial freedom before you get there, we are so glad to be on this FIRE path otherwise our dreams of a family wouldn’t be quite so achievable financially for us.

      Mrs DDU

      Reply
  10. Michael

    Congratulations! Fantastic to hear that you are expecting.

    Here is one thing I would suggest – plan and have a couple of vacations during pregnancy. Once the kiddo arrives, you are grounded for a good while 🙂

    Reply
    1. Dividends Down Under Post author

      Thanks Michael. We aren’t usually the type to go on holidays/get away – so it shouldn’t bother us too much to be grounded. But we are thinking about doing a weekend away at least. Thanks for the suggestion 🙂

      Mrs DDU

      Reply
  11. Blake

    Congrats my man. This is what it’s all about –
    Wish you all the best. FYI we bought a car seat for $450 CDN and recently sold for $350 CDN after 1 year. If you buy quality you can get your money back…. $100 for one year is one heck of a deal! I won’t factor opp cost into this because the convenience factor of quality was worth it all.

    Reply
    1. Dividends Down Under Post author

      Thanks Blake. The resale on a lot of baby things is quite good! We were very lucky to be given a car seat by a relative whose baby just grew out if it. We’ve also bought our pram second-hand and should hold that value pretty well too! Thanks for the heads up though, we might not have known how good the resale could be 🙂

      Mrs DDU

      Reply

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