Tuesday, June 4, 2013

Income Update - May 2013

May has now come and gone.  It's hard to believe 5 months of 2013 has already passed us by.  It was a solid month as far as budgeting is concerned.  Despite not really tracking my expenses as they came during the month, I'm quite satisfied that there wasn't a significant jump.  Rather I'd just consider the additional spending as noise as it wasn't a considerable amount.  My minimum expenses for May came in at $1,399.65 and increased the average for 2013 slightly higher to $1,376.01.  My goal for the year was to have them to average less than $1,400 per month, so they are staying in line.  Although May's were just barely under.  My total expenses have varied a lot this year ranging from $1,450 to $1,600 which is a larger range than I expected.  By the end of the month I spent a total of $1,574.54 which ended up increasing the average to $1,533.22.  I'm okay with this level of total expenditures, although I know I can do better.  Overall it was a steady as she goes month.

As mentioned in my May dividend update, I received $86.49 in dividends last month.  Counting the $5.13 that I earned in interest, my total potential retirement income was $91.62 for May.  Nothing great but it's still money I didn't have to work for.  This covered 6.55% of my minimum expenses for May which was a decent amount considering I had a pretty low month of dividends.  My FI income, monthly income based on the 30 year US Treasury bond using my net worth excluding traditional retirement accounts, came in at $418.04 based on the 30 year rate of 3.28% at month's end.  This was around a $65 increase from April's level, mostly thanks to the increase in the 30 year Treasury yield.  This would have covered 29.87% of my minimum expenses for May.

*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 net worth 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 $6,942.66
Expense Check $986.85
TOTAL $7,929.51

Monthly Expenses
Category Budgeted Amount Actual Amount Subtotal
Rent $480.00 $480.00
Utilities $221.00 $129.95
Gas $150.00 $129.94
Car Insurance $95.00 $95.00
Groceries $200.00 $223.35
Restaurants $125.00 $105.57
Entertainment $0.00 $49.57
Cell Phone $100.00 $97.61
Other $49.06 $49.06
Miscellaneous $55.00 $114.49
Gifts $0.00 $0.00
Trip $300.00 $300.00
Roth IRA $0.00 $0.00
Emergency Fund $0.00 $0.52
Gifts $75.00 $75.00
FI savings $5,979.45 $5,979.45
Car Maint/Repair $100.00 $100.00
TOTAL $7,929.51

I've updated my Progress page to reflect May's changes.

On a side note I earned $34.83 from Adsense during May, which more than covers the domain registration so as of now the rest is profit.  It's nothing spectacular, but since I haven't really done much with optimization of it just yet, I'm still happy with it.

How did you do on your budget for the month?  Is there anything you're going to focus more on in June due to May's spending?

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