My minimum expenses for July came in at $1,454.40 which was my highest for the year so far. Hopefully this isn't a trend in the making since June was my previous high. This raised my average minimum expenses from $1,387.13 to $1,396.74. Ouch, I'm getting awfully close to that less than $1,400 per month average I set as a goal for the year, but I'm still coming in under that for now. Luckily, my total expenses didn't increase as much and came in at $1,597.98. This increased my average monthly expenses for 2013 to $1,552.14. I'm going to really buckle down in August to try and get my expenses back under better control. A lot of the increase has been due to gas prices rising and my job requiring me to drive a lot of miles. My minimum expenses goal will have to be revised since my wife and I are in the middle of purchasing a house which will bring added expenses.
As mentioned in my July dividend update, I received $96.80 in dividends last month. Adding in the $2.45 in interest income and my total potential retirement income for July was $99.25. A far cry from June's $439.84. My expense coverage ratio just from dividends and interest was still a solid 6.82% for a month with higher than normal expenses and relatively low dividend payouts. This was higher than April 2013's coverage of 5.24% and July 2012's covereage of 1.64%, so I'm quite pleased. My FI income, monthly income based on the 30 year US Treasury bond using my net worth excluding traditional retirement accounts, came in at $508.59 which covered 34.97% of my minimum expenses from July. The increase was due to a very solid net worth increase which I'll post about later and another increase in the 30 year US Treasury yield to 3.64%.
*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 July's changes.
How did you do on your budget for the month? Is there anything you're going to focus more on in August due to July's spending?