Saving for the future: February 2022


Author: Mr and Mrs DDU.

Perhaps the most important factor for how quickly we can reach financial independence and retire early is how much we save. The difference between saving $30,000 and $40,000 a year can snowball significantly over a decade.

We aren’t trying to save every last cent we can. We want to enjoy our lives and experiences now, not just when we reach FIRE. However, at the same time we recognise that living a simpler life means we save more, it also means we don’t need to accumulate as much wealth to afford the lifestyle we want of living off only our investment income.

We are currently aiming to save around 50% to 60% of our net income.

Most of the money we are saving is being split between our house fund and investments. We post any articles about our money savings choices or habits here.

February 2022 Savings Update

Dividend Income: $5.38

Regular Income: $9,558

Adsense Income: $0.00

Total Income: $9,564

Expenses: $4,738

Savings Rate: $4,826

Savings Percentage: 50.5%

Here is the graph:

We invested a total of $4,826 of our savings into shares (not including any Dividend Re-Investment Plans). We added $0 of this month’s savings to our house deposit.

Here are the changes compared to last year:

February 2022 rate: 50.5%

February 2022 rate: 61.4%

Un-Improvement: 10.9%

February 2021 savings: $6,236

February 2022 savings: $4,826

Un-Improvement: $1,410

Income

Dividend Income – In February we received $5.38. Our dividends covered almost nothing 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 Little DDU in our life. Our superannuation (payments made for our personal retirement – sort of like 401k in the US or NEST in the UK) contributions are not included in our income or savings rate, but do help our long-term wealth.  

Google Adsense – As the name suggests, it’s when Google makes a payment for advertising on the blog. We received a payment in November. Thanks for reading the blog and keeping the ‘lights’ on!

Expenses

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

Fun trips – We are still going on fun trips and not spending on much else out of the ordinary.

Time off – However, we are making a conscious effort to work a bit less, so whilst that may reduce the savings a little, there’s extra life living that can’t be quantified with numbers 🙂

Savings Tables

Here are our two savings tables since we started blogging showing the savings rate % and the savings rate in $ terms:

Final thoughts

Still saving around 50% of our income is a really good amount for us and allows us to save very nicely towards our future. Mrs DDU likes to say “50% for now, 50% for later”.

The 3 key factors for us to become wealthy are:

  • How much we earn
  • How much of our earnings we save
  • How hard we can make our savings/investments work

These monthly savings posts will track how good we’re doing with the first 2 factors.

How did your savings go in February?

Thanks for reading this article about our financial journey Down Under. Onwards and upwards!



Image and article originally from dividendsdownunder.com. Read the original article here.