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.
December 2017 Savings Update
Regular Income: $9,145
Blog Income: $0
Total Income: $9,174
Savings Rate: $5,442
Savings Percentage: 59.3%
During December we invested a net total of -$71 of our savings into shares, which we will post about soon. Essentially, we sold something and saved most of our investing money for January. We also added $1,033 of our savings towards our house fund, this amount includes interest but there’s hardly any so far.
Savings rate including Superannuation: 59.3%, 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).
December/Christmas is the most wonderful time of year, particularly in Australia because it brings summer and Christmas together. It’s also an expensive month, but we were very happy with how much we ended up spending on everything for the last month of 2017.
Here are the changes compared to last year:
December 2016 rate: 30.1%
December 2017 rate: 59.3%
December 2016 savings: $2,064
December 2017 savings: $5,442
Dividend Income – A little more this month, but doesn’t pay for a lot yet. Our dividends covered: 0.79% 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:
Driver’s licence renewal – Mrs DDU needed a driver’s licence renewal, so we spent around $80 on that.
Baby DDU clothes – Baby DDU is growing quickly, she’s already too big for most of the clothes we have for her in smaller sizes. Apparently she’s a very tall baby, so we need to move onto the next sizes – so we bought quite a few items of clothing this month.
Christmas – We spent a fair bit more on Christmas this year, mainly for other people. We don’t want to fall into the trap of making Christmas all about presents, but we felt that we wanted to spend a bit more on people seeing as we’re earning more and saving more this year.
What a (financially) great way to end the year. We had our best ever savings rate of 59.3% and saved the most cash we ever have of $5,442. We’ll do a summary post of the whole year soon, it’s been a very good year for us.
Thanks for reading this article about our financial journey Down Under.
Onwards and upwards!