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.
August 2017 Savings Update
Regular Income: $7,233
Blog Income: $102.75
Total Income: $7,366
Savings Rate: $2,983
Savings Percentage: 40.7%
During August we invested a total of $2,640 of our savings into shares, which we will post about next.
Savings rate including Superannuation: 47.5%, 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).
Getting back over 40% is a good sign. The last six months is looking really good, particularly compared to a year ago:
August 2016 rate: 32.8%
August 2017 rate: 40.7%
August 2016 savings: $1,594
August 2017 savings: $2,983
Dividend Income – Nothing this month, sadly.
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 received a payment this month, thanks for reading!
Here we go, non-regular expenses that happened this month:
Car Registration – We identify annual expenses when they actually occur during the year, not on a monthly basis. We paid $800.80 for our annual car registration during August. We have to pay for this, or else we couldn’t drive our car! Without that we’d have had a savings rate of 51.6%.
Another good month on the road to financial independence. We want to do as good as we can now that we have had our little one. A post about that is next!
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!