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
Regular Income: $8,975
Blog Income: $0
Total Income: $8,991
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%
November 2016 savings: $462
November 2017 savings: $4,652
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.
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.
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!