Saving for the future: June 2017

By | July 9, 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 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

Dividend Income: $0

Regular Income: $6,607

Blog Income: $0

Total Income: $6,607

Expenses: $4,226

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%

Improvement: 45.2%

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.

Income

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?

Expenses

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.

Final thoughts

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!

10 thoughts on “Saving for the future: June 2017

  1. Dividend Diplomats

    DDU –

    Amazing savings results and what a difference a year makes! Excited for your July results, I believe it will be very positive. Keep it up!

    -Lanny

    Reply
  2. The Jolly Ledger

    You guys are doing so much better than last year. So far good savings rate almost every month. I know you are excited for your baby, but really they don’t need much. It must be getting close!

    Reply
  3. Etienne

    Like your blog, great stuff.
    I started buying shares and I am using the platform IG, now I realized 2 month later that there is no DRIP option, upon checking with them they explained they are working on it.
    Could you share with me which platform you are using to have the DRIP option, as I basically want to do the same… to hold long and see the dividends growing.
    Any advise would be great.
    thanks

    Reply
    1. Dividends Down Under Post author

      Good job investing Etienne, your future self in 10 years will thank you for it. We use CMC for our investing, but activate the DRP through the Computershare, Boardroom, Link etc portal. Hope that helps.

      Mr DDU

      Reply
  4. pia

    Well done on your savings rate! Especially that comparison between this year and the last. Have you included investments in as savings or is your savings rate purely cash only?

    Reply
  5. Mrs. ETT

    Not knowing much about babies or baby stuff, the price of the cot and mattress actually sounds fairly reasonable to me. After all, don’t they spend 90% of their lives sleeping? I’m sure if you figured it out on a per hour usage basis, this is excellent value!

    Reply
  6. FerdiS

    Excellent savings there, DDU! Thanks also for the link to Superannuation — a term I was not familiar with. What a great scheme to boost your retirement funds!

    Take care and keep up the good work!

    Reply
  7. Duncan's Dividends

    Solid savings rate for the month, anytime you push 40% in my opinion you are doing great, but also are living life as well. Frugality is good, but being able to enjoy things is super important too. I’m also looking at a new computer in the near future since my desktop is now five years old and beginning to start to show its age.

    Reply
  8. Miss Balance

    That is a fabulous result year on year – congratulations 🙂
    It is always good to see the effort paid off which you couldn’t do without tracking like this.
    Keep up the good work.

    Reply

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