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
Regular Income: $9,144
Blog Income: $0
Total Income: $9,277
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%
September 2016 savings: $1,548
September 2017 savings: $4,688
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.
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!
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!