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 on 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.
May 2017 Savings Update
Regular Income: $8,281
Blog Income: $109.17
Total Income: $8,403
Savings Rate: $4,734
Savings Percentage: 56.3%
During May we invested a total of $1,609 of our savings into shares (excluding any dividend re-investing), which we will post about next.
Savings rate including Superannuation: 56.3%, 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).
That’s more like it. Our highest savings rate of all time, along with our biggest earning month of all time (helped by 3
pay days). Let’s compare to last year:
May 2016 rate: 50.9%
May 2017 rate: 56.3%
Not a huge increase of the percentage saved, it was hard to beat a rate that was already over 50%. The big change was the dollars saved. We saved $2,344 in May 2016 and we saved $4,734 this May. We more than doubled how much we saved.
Dividend income – Not much this month, but at least we got something.
Regular income – This is the after-tax figure if you’re wondering. The 3 pay period really helped to boost this figure to the biggest of all time.
Blog income – We received a payment from Google Adsense which is awesome. Thanks for reading our blog!
So where did all the money go?
Here we go, non-regular expenses that happened this month:
Car service – We had our car serviced during May, which cost $255. We think it’s very important to keep our car in good working order.
Baby – We acquired a lot of baby things this month. We don’t know when the baby is going to come so the earlier we can get everything done the better. Also, it’s going to become harder for Mrs DDU to get around.
Food – We ate out a lot more than we normally do. We won’t be visiting many restaurants for a while after the baby comes so we’d thought would tick off a few places off our eat-list.
We are very happy with how May went. To save over $4,500 in a single month is fantastic for us. We won’t have another month with 3 pay periods until November so we’ll have a hard time beating that rate until then.
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 May finances like?
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!