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!

26 thoughts on “Saving for the future: May 2017

  1. Matthew Freeman

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

    Reply
    1. Dividends Down Under Post author

      Thank you! We are feeling so great about our savings rates and the ability to “breathe” financially, a lot has changed in the last year!

      Mrs DDU

      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
    1. Dividends Down Under Post author

      It’s always such a pain to get the car serviced, but indeed well worth it, and potentially WAY more convenient than it breaking down at any moment.

      Thanks Bert 🙂

      Mrs DDU

      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
    1. Dividends Down Under Post author

      Thanks Amber Tree! Feeling really grateful to have such generous savings rates lately, even with our added expenses. Keep that money working hard!

      Mrs DDU

      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
    1. Dividends Down Under Post author

      So excited! I’m in a weird place where I truly cannot wait and feel really impatient.. and on the other hand I freak out because I still have so many things to do (baby’s clothes aren’t even washed!). I better get my butt into gear – but after 1 task I’m usually ready for a 3 hour nap lately haha..

      Mrs DDU

      Reply
    1. Dividends Down Under Post author

      Thanks Pat! I have a bit of a secret goal that we will be part-time FIREing it up by the time our soon-to-be-born daughter starts school, hopefully she will have hardly any memory of Mr DDU spending all his time at work once she is older – that’s the dream of family life I guess :).

      Mrs DDU

      Reply
    1. Dividends Down Under Post author

      Thank you Amanda :). I am feeling good, getting a little achey in places at this stage and I can hardly do 1 task without needing a nap! So excited to meet our little girl, but also, man I need to get my butt into gear and finish setting up her things (did I mention I haven’t washed her clothes yet? eek!).

      Mrs DDU

      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
    1. Dividends Down Under Post author

      We are doing great, thanks J :). So impatient/excited now, especially after doing the birth classes. Mr DDU seems to be loving giving me and the baby lots of attention – I can tell he’s so ready to be a dad too, makes my heart melt!

      Mrs DDU

      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
    1. Dividends Down Under Post author

      Sadly we won’t be maintaining 50% monthly over the next few months – Annual car insurance, rego, health insurance.. The second half of every year is where our big bills hit BUT hopefully the overall average for the whole year is 40-50% – that would be nice!

      Mrs DDU

      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
    1. Dividends Down Under Post author

      I hope your June was extra good with that 3 paycheck month! it’s so exciting to be able to put that money straight to your future 🙂

      Mrs DDU

      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
    1. Dividends Down Under Post author

      Oh I feel like I just learned a big secret! (although slightly late because it’s already on your blog lol). That’s so exciting! Congratulations, finding “the one” and making it official is no small thing. I feel like finding Mr DDU was the first BIG step I ever made towards the rest of my life and my biggest motivation towards FIRE.

      Mrs DDU

      Reply

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