Monday, December 3, 2012

Income Update - November 2012

November's income was higher than my average so far for the year which is great because I'm still able tor reduce my expenses so every extra dollar of income gets to be converted into savings mainly dividend growth investing capital.  Not only did I have a higher income for the month but my minimum and total expenses were both lower than I've averaged for the year so far.  My food budget is still really high but that's mainly due to the fact that I am on the road a lot so when I'm home I spend more on restaurants to take my wife out and my grocery bill is elevated for the same reason.  Once we reach early FI I know our food budget will be drastically reduced.  In November my minimum expenses for the month totaled only $1,392.81 which is my lowest for a total month.  Unfortunately my total expenses didn't drop quite as much but they did drop so there was improvement on that front.  Total expenses for November came in at $1,530.60.  My average minimum expenses for the year dropped from $1,519.96 to $1,508.40, of course that includes my debt service payment from earlier this year.  My average since that's been gone is $1,418.22.  My average total expenses dropped from $1,691.36 to $1,676.74 including November.  Dividend and interest income for the month was a little light, coming in at $63.09, this covered 4.53% of my minimum expenses for the month.  My FI number, net worth less traditional retirement accounts based on the monthly income I could generate from the 30 year Treasury yield, increased again to $196.58 with my extra savings.  This covered 14.11% of my minimum expenses for the month.

*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 $6,912.07
Expense Check $1,648.52
TOTAL $8,560.59

Monthly Expenses
Category Budgeted Amount Actual Amount Subtotal
Rent $480.00 $480.00
Utilities $210.00 $132.92
Gas $175.00 $105.78
Car Insurance $80.00 $80.00
Groceries $250.00 $255.00
Restaurants $130.00 $150.88
Entertainment $30.00 $24.97
Cell Phone $75.00 $75.00
Other $49.06 $49.06
Miscellaneous $50.00 $101.99
Gifts $0.00 $0.00
Trip $200.00 $200.00
Roth IRA $0.00 $0.00
Emergency Fund $0.00 $73.46
Gifts $50.00 $50.00
FI savings $6,706.53 $6,706.53
Car Maint/Repair $75.00 $75.00
TOTAL $8,560.59

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