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 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.
June 2017 Savings Update
Regular Income: $6,607
Blog Income: $0
Total Income: $6,607
Savings Rate: $2,381
Savings Percentage: 36%
During June we invested a total of $1,097 of our savings into shares, which we will post about next.
Savings rate including Superannuation: 36%, 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).
A pretty good month, saving over a third of our income in any month is a result we’re happy with. June was fairly expensive compared to most of the other 2017 months so far, more on that below. Let’s compare to last year:
June 2016 rate: -9.2%
June 2017 rate: 36%
This was a huge improvement for us. The increased earnings and continuing frugality saw us go from having to dip into our savings by $277 overall last June to actually saving $2,381 this June, an improvement of $2,658 in one year. Not every month will have such a big increase, but this one was a really good one.
Dividend Income – Nothing this month. Perhaps next year will have a payment, but no promises because we aren’t going to buy just based on the payment date.
Regular Income – This is the after-tax figure if you’re wondering. It is the combined figure of both our incomes plus any bank interest we have received.
Blog Income – We count this payment when we receive a Google Adsense payment into the bank account. We didn’t receive anything this month.
So why was this month a little more expensive than the last few months?
Here we go, non-regular expenses that happened this month:
Baby cot and mattress – Safety features, combined with finding value for what we’re getting, led us to the choices we made for our cot and mattress. We went through a lot to get our baby so we don’t want to scrimp on something that could potentially be unsafe. We spent $325 combined on both items brand new.
Laptop – We have been saying for a long time that we need to replace Mrs DDU’s laptop – her old one was pushing six years old and was having issues. This month we finally got around to doing it (just before the financial year end). We spent $483 on a laptop that will be a good tool for Mrs DDU’s work before baby DDU arrives and when she gets back into it.
A good month for us and we also went out doing a fair few things too, enjoying Mrs DDU’s mobility whilst she still feels like going on little adventures. July was our ‘worst’ month last year, so we’ll have to see how well we do this time around.
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!