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.
January 2017 Savings Update
Regular Income: $5,831
Blog Income: $0
Total Income: $5,841
Savings Rate: $2,209
Savings Percentage: 37.8%
During December and January we invested a total of $1,570 of our savings into shares.
Savings rate including Superannuation: 37.8%
(We count superannuation savings when a payment is actually made, usually every 3 months).
This is a nice looking savings trend over the last few months. Now that we’ve been blogging and tracking for over a year, we can compare to the last year’s savings rate too:
Jan 2016 rate: 14%
Jan 2017 rate: 37.8%
We are happy with that progress in one year. Considering we’re earning a lot more now, combined with a higher rate, that’s added a lot to our savings that we can put towards investing, our emergency fund, saving for a house, baby #2 IVF Fund or anything else we’re going for.
Dividend income – Just the one small dividend payment, but it’s something to compound our wealth with.
Regular income – This is the after-tax figure if you’re wondering. We’re very happy with this figure and we’ll be receiving around this amount each month from here onwards.
Blog income – We didn’t receive any payments this month (it has to be over $100 for Google to send you a payment). However, we are extremely happy and surprised by the $68.60 we accumulated during January – thanks to all our readers for making this happen! We’re now sitting on a balance of $97.62 so the next payment should be sent in March with February’s total added. Wow.
Non-regular expenses that happened this month:
Birthday present – One of our closest family members just turned 18, so as our present we decided to give $250 towards their first investment. We don’t normally give presents anywhere near this size, but it’s a big life milestone and they’re pretty excited by the idea of taking control of their finances so we were glad to contribute.
Further education – We had some expenses from Mr DDU’s first exam, $135. He passed (go Mr DDU!). This will be partially refunded when he does his tax return later in the year, thanks to Australia’s tax system.
Pet expenses – We took our cat to the vet this month because kitty DDU was a bit sick with a nasal infection/cold, we were given anti biotics and seems all better now, the vet + treatment cost $135.
Petbarn sent us an offer for 25% off all products, so we loaded up on cat food and cat litter which cost us a total of $163. It’s taking advantage of this type of offer that saves us money over the long term.
Medical baby expenses – Now that we’re pregnant we will be paying fairly regular expenses for things like Dr visits, ultrasounds etc. We won’t list small baby purchases separately (like clothes or toys) but we will mention the major things. We spent $430 on medical things this month.
We’re very happy with our savings rate, even with the above things we still managed around 38%. It suddenly seems like we have lots of cash to put towards good things, which we have already started with our $1,570 towards investments in December and January.
We have a number of posts in the pipeline – reviewing 2016, goals for 2017 and our recent share purchases. We will get to them soon, we promise!
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 January finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!