Tuesday, September 4, 2012

Income Update - August 2012

August was a decent month for my spending with it being below my average so far for the year, but it was still higher than it should have been.  My minimum expenses in August ended the month at $1,417.13.  So far in 2012 my minimum expenses have averaged $1,542.09 through August but the average should start creeping down with my $230 debt service payment no longer being made since that's paid off.  Total expenses for the month were $1,615.80.  Considering how poorly I did on a lot of my budget for the month that's a win in my book since I have averaged $1,721.18 per month year to date.  Unfortunately my potential retirement income is still lower than I would like but that was due to a slow payout month.  PRI totaled only $9.87 which is 0.70% of my minimum expenses.  Thanks to a rise in the 30 year treasury rate to 2.67%, my FI at the end of the month was $144.48 which covered a much more respectable 10.20% of my minimum expenses.  Since I am trying to be able to live off of dividends, my PRI is a much better number to go off of with it's sources being dividend and interest income.  Through August my PRI has average 3.51% coverage of my minimum expenses.



*Minimum Expenses are only the expenses related to rent, utilities, car, food, minimum payment on debt and other necessities. In other words, the required amount of replacement income I would need for financial independence.
*Total Expenses are the total monthly outflow of money.
*Potential Retirement Income is income received from dividends, interest, cash back from credit card purchases and any other source of income not related to my job.
*FI is my liquid assets invested at the 30 year treasury bond yield at the end of each month divided by 12 to get monthly income.


Monthly Income
Category Amount
Paycheck $5,243.80
Expense Check $982.03
TOTAL $6,225.83


Monthly Expenses
Category Budgeted Amount Actual Amount Subtotal
Rent $480.00 $480.00
Utilities $210.00 $113.27
Gas $175.00 $158.41
Car Insurance $80.00 $80.00
Groceries $250.00 $304.36
Restaurants $130.00 $167.86
Entertainment $21.00 $67.42
Cell Phone $75.00 $75.00
Other $49.06 $49.06
Miscellaneous $50.00 $104.72
Gifts $15.70 $15.70
EXPENSES SUBTOTAL $1,615.80
SAVINGS
Trip $125.00 $125.00
Roth IRA $750.00 $750.00
Emergency Fund $160.04 $80.00
Gifts $34.30 $34.30
FI savings $3,570.73 $3,570.73
Car Maint/Repair $50.00 $50.00
SAVINGS SUBTOTAL $4,610.03
TOTAL $6,225.83

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