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.
February 2017 Savings Update
Regular Income: $6,004
Blog Income: $0
Total Income: $6,004
Savings Rate: $3,030
Savings Percentage: 50.5%
During February we invested a total of $2,254 of our savings into shares.
Savings rate including Superannuation: 50.5%
(We count superannuation savings when a payment is actually made, usually every 3 months).
We are loving the trend over the last few months. Let’s compare to last year:
Feb 2016 rate: 38.7%
Feb 2017 rate: 50.5%
We crossed the 50% mark again! Yay. The only other time we’ve reached 50% was a month where there were 3 of Tristan’s pay periods, not just the usual 2 like this month was.
The percentage change isn’t a huge jump, but in dollar terms it was a big change. In February 2016 we saved $1,315 and in February 2017 we saved $3,030, so we more than doubled the amount of money saved.
Our money will be a balance between saving for FIRE & saving for future things (like a house, second IVF baby) versus enjoying our life in the moment. We think a monthly savings rate between 40%-60% at this stage is a good level to be aiming for.
Dividend income – Nothing in February. Hopefully our final dry month ever.
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 and more when there are three payments for Tristan (he is paid fortnightly, so 2 months of the year have 3 payments).
Blog income – We didn’t receive any payments this month (it has to be over $100 for Google to send you a payment). But the blog did generate $59.62 during February! Which means we’re now sitting on $157.24 and that should be paid out during this month. Thanks so much for reading and helping with this.
Non-regular expenses that happened this month:
Office 365 – We decided to make the plunge and get the Office 365 for an annual cost of $119. It’s a great product for people working on various devices at various places. We got the ‘Home’ package which is 5 computers, 5 tablets and 5 phones. It’s really helping both of us with our work and studying.
Valentine’s Day – We are a little bit of hopeless romantics, particularly Tristan. We didn’t do anything crazy, but we got each other a few sweet treats and went out to dinner and didn’t hold back on what we wanted to get. It’s things like this where we’re making sure we are enjoying today and saving for the future.
We’re loving how our finances are really improved compared to last year. With $2,250 invested during February we’re really taking our portfolio on a ride upwards – our post on what shares we bought in February will be coming very soon.
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 February finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!