Saving for the future: September 2017

By | October 10, 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.

September 2017 Savings Update

Dividend Income: $132.99

Regular Income: $9,144

Blog Income: $0

Total Income: $9,277

Expenses: $4,587

Savings Rate: $4,690

Savings Percentage: 50.5%

During September we invested a total of $1,512 of our savings into shares, which we will post about next.

Savings rate including Superannuation: 50.5%, 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).

Any month over 50% is a great month in our eyes. It is amazing to see how much progress we have made in a year and we can’t wait to see what the rest of the year holds:

September 2016 rate: 39.5%

September 2017 rate: 50.5%

Improvement: 11%

September 2016 savings: $1,548

September 2017 savings: $4,688

Improvement: $3,140

Income

Dividend Income – Beating the previous year and getting over $100 is awesome for us.

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. This amount also includes any government payment(s) we receive now that we have Baby DDU in our life.

Blog Income – We count this payment when we receive a Google Adsense payment into the bank account. We didn’t receive anything this month.

Expenses

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

Hospital expenses – We have private health insurance because of our IVF journey, so we utilised our insurance to stay at a private hospital for the birth of Baby DDU. Most expenses were covered but we had to pay for a few things including an anaesthetist because we had an emergency caesarean. We should get some of this back from Medicare and our insurance company in October or November, but we’re recognising we paid the full cost in September.

Baby monitor –  We wanted to make sure we had a high quality baby monitor which has video, audio, a temperature gauge etc, so we bought a very good one that was on special at Baby Bunting for $270. We haven’t used it yet but it will be very useful in the future.

Convenience food – It is amazing how little time you get to do things when you have a newborn. Spending time preparing food went out of the window in September so when we weren’t eating food prepared by family, we were eating pre-prepared food from the shops. That includes (good quality) meals from the supermarket and sort-of healthy takeaways. Hopefully we can get a hold on this over the next month or two!

Final thoughts

A great month considering how much we spent. It would be great to get a savings rate above 50% every month and this month was just that. We couldn’t be happier with how things are going at the moment.

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

Onwards and upwards!

9 thoughts on “Saving for the future: September 2017

  1. Divnomics

    That growth in savings (rate) is really good! Before you know it you can adding to that portfolio and grow the dividends even faster as well. Oh and smart to buy a good baby monitor, my sister did the same last year and loves the extra options that came with it.

    Reply
  2. Monkey_Drugs

    Congrats on the newborn,

    We’ve made it through to school age kids now and fondly remember the early days. One thing that we found helpful was joining the local mothers group / kids garage-sale type groups on Facebook, instead of buying things new.

    We found a lot of people selling things that they’d only used a few times as kids grow out of things so fast.

    Monkey Drugs

    Reply
  3. Miss Balance

    A brand new baby and your savings rate is still above 50% well done!!

    Enjoy your first few months together and don’t worry about the food etc too much, you will slowly work into a new routine.

    September was my best dividend month yet. I get excited each time it grows. it was the first time I got over the $300 mark in 1 month. Overall though I’m only sitting on an average of just under $90 per month but it still feels good 😉

    Reply
  4. Dividend Diplomats

    DDU –

    Great job, love seeing you above the 50% mark with every single thing you have going on. Congrats on managing through everything very well.

    -Lanny

    Reply
  5. FerdiS

    Amazing savings rate — and that with a new baby in the house! Congratulations, keep up the good work and sharing of your journey. It is very inspirational!

    Reply
  6. pia

    I’m in awe that you still managed a 50% savings rate with baby DDU now onboard. So many people keep telling me how my savings will go out the window when we do finally have a child. (But even the prospect of IVF makes me feel that way to be honest).

    Well done!

    Reply

Leave a Reply

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