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.
April 2017 Savings Update
Regular Income: $6,208
Total Income: $6,403
Savings Rate: $690
Savings Percentage: 10.8%
During April we invested a total of $1,177 of our savings into shares, which we will post about next.
Savings rate including Superannuation: 10.8%, 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).
Oh dear! It seems that we decided to spend all of our money last month (more on that below). Let’s compare to last year:
April 2016 rate: 15.2%
April 2017 rate: 10.8%
Well, we had a lower savings rate than last year for the first time since we’ve been comparing.
Even though our savings rate was lower, the dollar amount we saved increased. Last year we saved $469.52 in April
and this year we saved $689.65 thanks to the higher income.
Dividend income – A new record for us, nearly $200. All of this went into more shares.
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 have crossed the $100 barrier again with Google Adsense, so we should get a payment during May! Thanks for reading our blog!
So where did all the money go?
Here we go, non-regular expenses that happened this month:
Babymoon – With the baby coming along we decided to go on a little trip to our city’s most luxurious hotel and we had a great time! In total, we spent $720 on accommodation and food over 2 days.
Washing machine – Our washing machine decided to break down after 3 ½ years of use, so we had to get a new one. We got an LG one for $519, which was well and truly the best price we could find for this model – Mrs DDU also found a coupon online to take a further $20 off the original price.
Ultrasound – We have reached the 20-week stage with our baby girl, which is when you have an ultrasound. This one cost us $335.
Mattress – When we first moved out we got the cheapest mattress that we could find for a few hundred dollars. It really wasn’t suiting us well, particularly with Mrs DDU being pregnant and Mr DDU sitting for large parts of the day which was bad for his back. Having a bad mattress wasn’t helping either of us recover each day. We spent $999 on an amazing 5-zone pocketspring mattress – it is truly amazing. Mrs DDU managed to get $200 off the price by asking not to have the “free items” included (a pillow and mattress protector – we already have those) and got discount instead! It never hurts to ask. Our new mattress feels as good as the luxury hotel’s one we slept on for our babymoon and we are sleeping so much better. We spend around a third of our life in bed, so it’s important to have a comfortable one.
An expensive month, but we really enjoyed each thing we spent our money on. Not every month can be amazing, but we have a good feeling that May could be our biggest savings rate yet (hopefully!) because it’s a 3-payday month for Mr DDU.
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 April finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!