My wife and I purchased a house back in September and while October was pretty quiet with the new expenses rolling in, November not so much. As expected, my minimum expenses for November saw a large increase all the way up to $2,351.98. Ouch! Food expenses came back down to my target levels which was a welcomed sight, but the base expenses due to the house increased significantly. My average minimum expenses increased from $1,450.34 at the end of October all the way up to $1,532.31. There's not a whole lot of room for me to decrease these going forward except by decreasing food costs and then around July or August of next year the debt payment of $300 due to the refrigerator we purchased will come off the books. There's no way I'll hit my $1,400 average minimum expenses goal for 2013 as they will just increase from here. I'll have to adjust this goal for 2014 as the house expenses will continue to eat up a larger portion of my income. But that goal was set without planning on a house purchase which skews the numbers significantly. Obviously my total expenses increased as well and came in at $2,448.67 for the month. This is well above my average of $1,635.30 through October and my new monthly average is up to $1,709.24. All in all it was a decent month as far as expenses go when you back out the house expenses as I was on or under budget on the expenses that I have control over.
As mentioned in my November dividend update, I received $136.10 in dividends last month. Adding in the $1.93 in interest income brought my total potential retirement income for November to $138.03. My expense coverage ratio just from dividends and interest was decent at 5.87% of my minimum expenses for the month. Due to the increased expenses and lower dividends, November's coverage was lower than August 2013's coverage of 12.05%. However, it was still an increase and November 2012's coverage of 4.53%, so I can live with the year over year progress. My FI income, monthly income based on the 30 year US Treasury bond of 3.81% using my net worth excluding traditional retirement accounts, came in at $651.16 which covered 27.69% of my minimum expenses from November.
*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.
|Category||Budgeted Amount||Actual Amount||Subtotal|
|Debt Payment (Fridge)||$300.00||$300.00|
I've updated my Progress page to reflect November's changes.
How did you do on your budget for the month? Is there anything you're going to focus more on in December due to November's spending?