My minimum expenses for June came in at $1,442.76 which was my highest for the year so far. This raised my average minimum expenses from $1,376.01 to $1,387.13. I'm still doing well on this since my goal is to average less than $1,400 per month for the year, but there's still work to be done after the increase. Consequently, my total expenses also increased and came in at $1,600.89. This increased my average monthly expenses for 2013 to $1,544.50. I'm hoping to get this a bit lower because I've been slacking some on tracking my expenses lately. Overall it was still a solid month despite the lower than average income and higher than average expenses. That's why it's important to have a great offense as well and as large a gap as possible between the two.
As mentioned in my June dividend update, I received $433.93 in dividend last month. Adding in the $5.91 in interest income, my total potential retirement income for June was $439.84. Since June set a record for my dividend income this also led to a very high expense covered ratio of 30.49%. My FI income, monthly income based on the 30 year US Treasury bond using my net worth excluding traditional retirement accounts, came in at $453.47 which covered 31.43% of my minimum expenses from June. Most of the increase in my FI income was due to the increase in the 30 year Treasury yield.
*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.
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I've updated my Progress page to reflect June's changes.
How did you do on your budget for the month? Is there anything you're going to focus more on in July due to June's spending?