Saving for the future: July 2017

By | August 6, 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.

July 2017 Savings Update

Dividend Income: $21.47

Regular Income: $6,188

Blog Income: $0

Total Income: $6,209

Expenses: $4,592

Savings Rate: $1,617

Savings Percentage: 26%

During July we invested a total of $1,103 of our savings into shares, which we will post about next.

Savings rate including Superannuation: 26%, 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).

Any month where we save more than 25% of our income should be considered as a win. July was the second most expensive month of 2017 and so it turned out to be the second lowest savings rate, more on that below. Let’s compare to last year:

July 2016 rate: -45.3%

July 2017 rate: 26%

Improvement: 71.3%

This was a gigantic improvement for us. The increased earnings and continuing frugality saw us go from having to dip into our savings by $1,491 overall last July to actually saving $1,617 this July, an improvement of $3,108 in one year. Last month we said we wouldn’t see such a big increase, but this was another big month.


Dividend Income – A pretty small amount this month but it helps nonetheless and will keep growing as the years go by.

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.


Here we go, non-regular expenses that happened this month:

Car Insurance – We identify annual expenses when they actually occur during the year, not on a monthly basis. We paid $869.55 for our annual car insurance during July. We were happy with this amount for what it covered us for and with the provider we wanted to go with. Without that we’d have had a savings rate of 40%.

Stocking up – With the baby getting close we wanted to stock up on items that we have to get every so often. Buying cat food, litter and other household items in advance should hopefully mean we don’t have to make many shopping trips in the first several weeks of our baby being born.

Final thoughts

We are pleased with how much our savings rates are improving compared to last year. With the way things are going we may be able to achieve a positive savings rate every month of the year, but no promises on that!

Thanks for reading this article about our financial journey Down Under.

Onwards and upwards!

12 thoughts on “Saving for the future: July 2017

  1. pia

    Ooh! You guys must be getting close now – how much longer to go before Baby DDU say hello to the big wide world?

  2. Graham @ Reverse The Crush

    I always enjoy reading your savings rate updates and dividend income updates. Thanks for sharing. Congrats on the big improvement over last years rate too. I’ve been slowly increasing my savings rate over the year and am trying to save at least 21% this month. Keep it up!

  3. Dividend Diplomats

    DDU –

    IMPROVEMENT from last year, it’s incredible. Think about it like that – can you destroy last year’s amount each month? Yes, in this case, and the more of that, that you can do is a very successful year. And like you said it – this is your most expensive month. Nice work over there.


  4. DividendSolutions

    Hey DDU,

    congrats on your results! – your savings rate of 26% is pretty solid. I think the savings rate is one of the most important factors on the way to Financial Independence, cause you can control it and for most of us it’s the primary source of income. And therefore the ammunition for investments.

    Keep it up,

    Best Regards,

  5. Mrs. ETT

    Congratulations, what an amazing turnaround in only one year. Car expenses are killers, yet you still managed over your 25% benchmark. The baby must be so close now… (it feels like it is taking forever!) If it is finally coming to that time, I wish you well for the upcoming birth.

  6. Miss Balance

    Such a great increase on last year- well done!
    I think stockpiling is also a great idea to be prepared for bubs.
    Best of luck keeping the savings rate above 25%, you can do it 🙂

  7. Strong Money Australia

    Very nice increase YOY guys. Keep up the good work!

    Sucks when those large bills come up but good to get it out of the way, and good when you still manage to save on top 🙂

  8. Dividend Daze

    Great month! Anytime you can have money left over in savings rather than taking from a savings account for spending makes a huge difference. Keep that pace up! Thanks for sharing. Cheers!

  9. Amber tree

    stocking up is a good idea! When the baby is there, you will want to do other things than shopping. That being said, I sometime now enjoy being on my own, with a podcast…just me. Privacy with kids that are a little older is rare…


Leave a Reply

Your email address will not be published. Required fields are marked *