March 2018 Quarterly Summary

05 Apr

We are 95 days down and only 2905 days to go on our 3000 day journey to financial independence.

Today, we wanted to discuss our progress on this journey so far and show you how far we have come in such a short space of time. We have already seen huge benefits in undertaking this journey and we are more motivated than ever to knuckle down and keep pushing. Also, it has been quite fun to work on optimising our life, looking at ways to save money and doing this in a way where we don’t feel we are depriving ourselves in any way. So here is our March 2018 quarterly summary:

Savings rate:

There are a few different ways to calculate this. However for simplicity we are using a simple calculation of savings divided by after tax earnings. 

To set the stage here…before we started this journey our savings rate was at or near ZERO….yep 0%. We were essentially living pay to pay and not getting anywhere financially. We were spending basically everything were earned….it shocks me that this was only around 3 months ago!

So drum rooooooooooooooll…..our savings rate was 40.25% for the March quarter!! We are super impressed that this simple shift in mindset could have such a huge impact…but this works...the proof is in the savings rate pudding.

How the heck did we do this we hear you ask?

Here’s how we did it – our frugal wins:

We had no increase in income. We purely worked on our expenses and these are the major ones:

  • Discretionary spending: Mrs3000 and I used to each have an “allowance” of $500 per month for money we could spend without regret. That is $12k per year or $98k approximately over our 3000 day journey. So we cut that out quick smart. If we truly need something, we buy it, still without guilt. However we are mindful of our spending and this mindset is addictive.
  • Reduced grocery bill: We were previously spending around $350 per week on groceries for the 3 of us…wow!! We have since reduced this to around $250 per week with further improvements possible.
  • We sold some stuff: We jumped on eBay and sold some unused items, pocketing over $1,000, all of the proceeds went into savings.
  • I stopped drinking alcohol (shrieks of horror!!): That is right…I did it. I just started viewing this as a massive waste. I plan on doing a post about this in the future so I won’t elaborate too much. Just FYI, Mrs3000 isn’t a drinker either and never really has been.
  • Gym membership: This came due and was not renewed. We instead work out at home – Yoga via YouTube, floor exercises, walks and general play with our son.

In summary, we have made seemingly small changes which have reaped massive results! We do not feel any of these changes has impacted our lives in a negative way at all. Instead most of these changes have been great benefits to us – less excess, more family time, less stuff, more conscious living and more conscious spending!! And the huge residual benefit of a 40% savings rate!! Next stop a 50% savings what else can we optimise??

Stay tuned.

Take care and best wishes all, 

Mr & Mrs 3000

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