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.
March 2017 Savings Update
Regular Income: $5,419
Blog Income: $157.24
Total Income: $5,694
Savings Rate: $3,074
Savings Percentage: 54%
During March we invested a total of $1,640 of our savings into shares, which we will post about next.
Savings rate including Superannuation: 65.4%, this is the net amount after the superannuation contribution tax of 15%.
(We count superannuation savings when a payment is actually made, usually every 3 months).
The upwards staircase keeps on going, but this is probably the last month of increases (for now). Let’s compare to last year:
March 2016 rate: 31.5%
March 2017 rate: 54%
We crossed the 50% mark again, hopefully we can do this regularly throughout the year. This could be quite difficult in the second half of the year as that’s when we have annual bills appearing in most months (car insurance, registration, etc).
The percentage change is nice, but in dollar terms it was an even bigger change. In March 2016 we saved $979 and in March 2017 we saved $3,074, so we more than tripled the amount of money saved. Our hard work of earning and not-spending is paying off.
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 – A very pleasing figure over $100. All of this is going back into more shares but it’s nice to receive.
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 Mr DDU (he is paid fortnightly, so 2 months of the year have 3 payments).
Blog income – We were paid our $157.24 that was sitting there. We’re very happy that we can receive such a nice amount every so often – thanks for reading!
Non-regular expenses that happened this month:
Birth class – With the baby coming along in a few months we have booked birthing classes so we can be better prepared. We paid the deposit of $200, the actual class is in a couple of months.
Food – We spent a bit more on food this month than we normally do. Other than that, there really wasn’t much else – we guess that’s why our savings rate is so high.
Another great month. Hopefully we can keep up good savings for most of the year, except for April which will be a very expensive month for us. The April expenses include the babymoon that several of you suggested and we have a few large household items that we want to (or need to) replace. Details of that next month!
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 March finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!