Saving for the future: May 2017

By | June 4, 2017

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

Dividend Income: $12.44

Regular Income: $8,281

Blog Income: $109.17

Total Income: $8,403

Expenses: $3,669

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%

Improvement: 5.4%

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.

Income

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?

Expenses

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.

Final thoughts

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!

13 thoughts on “Saving for the future: May 2017

  1. Matthew Freeman

    Very impressive guys 56.3% is amazing. Keep up great work.

    Reply
  2. Dividend Diplomats

    A savings rate of 56% is freaking impressive on its own, let alone that you acquired a bunch of new baby material and you serviced your car. Agree, it is better to maintain your car and incur the cost on the front end versus being cheap and dealing with a major repair when it comes. If you maintain a car properly, that thing will last forever.

    Congrats on the great month!

    Bert

    Reply
  3. Amber tree

    Now we are talking! Amazing savings rate.

    When there is the opportunity to save hard, you need to take it

    Reply
  4. Mrs. ETT

    So exciting to be getting closer to the baby! I’m sure you can never do too much preparation. Incredible to hit such a massive savings rate even while managing to eat out a bit more than usual.

    Reply
  5. J @ Hey, It's Just Money!

    Congratulations on another great month! 3 pay periods are always exciting, aren’t they? I also can’t wait for Baby DDU! Not long to go now! I hope you guys are all well, especially Mrs. DDU and the baby (sorry Mr. DDU, they get more attention these days). 🙂

    Reply
  6. Buy, Hold Long

    Very nicely done, well done to you. Hopefully you can keep the 50% savings rate up for the long term. And I hope it doesn’t fall too much when Mrs DDU has the baby. All the best!

    Reply
  7. Jax

    Well done, you guys! This month is a 3 paycheck month for me, and I am looking forward to putting the extra in savings. Three pay check months also mean an “extra” contribution to my work retirement accounts-I think I might be more excited about that!

    Reply
  8. timeinthemarket

    That’s an awesome savings rate. I’m jealous. This is a three paycheck month for me so I was hoping to hit 50%+ but I also have some extra engagement related expenses coming(RING).

    Reply

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