Saving for the future: November 2017

By | December 26, 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.

November 2017 Savings Update

Dividend Income: $15.62

Regular Income: $8,975

Blog Income: $0

Total Income: $8,991

Expenses: $4,339

Savings Rate: $4,652

Savings Percentage: 51.7%

During November we invested a net total of $2,250 of our savings into shares, which we will post about soon. We also added $1,010 of our savings towards our house fund, this amount includes interest but there’s hardly any so far.

Savings rate including Superannuation: 56.7%, 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).

This is probably going to be the last time we get such a good increase compared to last year, except perhaps April. It sure looks good to see most months’ savings rates over 30%.

Here are the changes compared to last year:

November 2016 rate: 9.8%

November 2017 rate: 51.7%

Improvement: 41.9%

November 2016 savings: $462

November 2017 savings: $4,652

Improvement: $4,190

Income

Dividend Income – Not much this month, but every little helps. Our dividends covered: 0.36% of our expenses.

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:

Contents Insurance – We bought our annual contents insurance for $267 this month, we bumped up how much we were insuring to reflect more items that we own (baby DDU’s stuff).

Portable Air Conditioner – You may remember in our previous blog posts that we’ve been trying to get an air conditioner installed in our rental for quite a while now that we have Baby DDU. We didn’t want to go through summer with Baby DDU having to suffer through 40C+ days. After a lot of back & forth and a commitment to pay $30 a week more in rent, the landlord still decided not to go ahead with installing the air conditioner. Sooo we just bought a portable air conditioner to make do as best we can whilst we live here. We spent $698 at JB Hi-Fi on a pretty good one, hopefully it does a good job on the hot days. We’ll still hang out at our other family members’ houses who have proper air conditioners on the truly hot days.

Final thoughts

Another month over 50% is a great success for us, we’ve reached over 50% in 4 out of 12 months in 2017 so far, with December to come.

Having to buy a portable air conditioner was annoying, but we’re paying the same rent as before and hopefully the rent will stay lower for longer too.

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

Onwards and upwards!

4 thoughts on “Saving for the future: November 2017

  1. timeinthemarket

    That is an awesome month and a HUGE improvement over last year. It looks like things are going well this year based on that graph – lots of 50%+ months and only a few low ones.

    Reply
  2. Engineering Dividends

    With a savings rate like you’ve got, and directing some of it to investments, you’ll have a growing dividend income stream before you know it. Good to know Mr. & Mrs. DDU are on the same page with living below your means.
    Can you tell me more about the government payments you receive for Baby DDU? Sounds like it helps offset some of the expenses that come with having a child. For instance, is it designed to cover a good portion of child expenses, or just a small fraction? Here in the U.S. there aren’t any payments, but we can get an annual tax credit ($2K per child if I recall, if income is not too high).
    Wishing you continued progress toward your goals in 2018!

    Reply

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