My minimum expenses for September came in at $1,640.97 which was my highest for the year so far, which is not good at all as that was well above the $1,408 that I had been averaging per month so far. Most of that was due to the fact that we were pretty much living in a house with no refrigerator for the week that I was home during the middle of the month and so we ate out almost every meal for a week. That's a sure fire way to blow a budget. I'm not trying to make excuses but at least there's a valid reason for it. My grocery expenses came in much higher that I would have liked but a lot of those expenses weren't actually grocery expenses. I had misplaced several receipts due to moving and therefore I couldn't break out the expenses better. My average minimum expenses are now at $1,434.18 which is well over my $1,400 per month goal for the year. Due to the increased housing costs this goal is pretty much shot but I'm still going to do my best to see how low I can get these. As expected, my total expenses increased pretty significantly as well up to $1,799.28. This is well above the $1,560 average through August and increased my average total expenses up to $1,587. I'll be getting as many of the expenses that I can control back in check but September was pretty much a lost cause due to the week of eating out.
As mentioned in my September dividend update, I received $451.04 in dividends last month. Adding in the $3.30 in interest income plus my first Google Adsense payment of $120.90 and my total potential retirement income for September was $575.24. My expense coverage ratio just from dividends and interest was great at 27.69% of my minimum expenses, and including the Adsense payment my passive income covered 35.05%. This was higher than June 2013's coverage of 30.49% and September 2012's coverage of 11.89%, so I'm quite pleased. If my expenses were in better check then it would have been much better. My FI income, monthly income based on the 30 year US Treasury bond of 3.68% using my net worth excluding traditional retirement accounts, came in at $564.31 which covered 34.39% of my minimum expenses from September.
*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 September's changes.
How did you do on your budget for the month? Is there anything you're going to focus more on in October due to September's spending?