Well so much for improvement. May's lowest expenses quickly shot back up to about on par with the average for the rest of the months. Total expenses for the month came in at $2,666.21 which was a relatively large ~$140 increase from May. But like I said it's about even with my monthly average which now sits at $2,638.12. That's also well above my goal of $2,350 for the year although if you back out the debt payment then I would be under that target. Fuel expenses were very high during June due to lots of driving while at work and while I was at home. I'm not too concerned with that because I know the fuel expenses would drop once I reach FI but it's a bit of a sore spot to see the expenses come up $50 over budget. Food continues to be my largest semi-voluntary expense. Voluntary because I get to choose what I eat but involuntary because well I have to eat. Overall I came in about $45 over the combined grocery/restaurant budget which isn't horrible but still higher than I'd like. So I'll be focusing more on food expenses during July to try and get those back in check.
Even though expenses shot way up compared to May I still did quite well on the passive income coverage since dividends received set a personal best at $605.00. Adding in the $3.07 in interest brought my total passive income to $608.07 for the month which covered 24.34% of my expenses. This was a solid 7.5% increase from March's coverage. As a dividend growth investor seeking financial independence I'm primarily concerned with the expense coverage that my dividends can provide and it's great to see them continuing to rise. My FI Income, monthly income based on the 30 year US Treasury bond yield of 3.34% using my net worth excluding traditional retirement accounts, came in at $718.01. That was about a $25 increase from the end of May which came almost purely from an increase in net worth as the treasury yield only changed from 3.31% to 3.34%. My FI Income for June covered 28.74% of my expenses.
*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 Income 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|
**Expenses shown above are only expenses that I paid for. My wife and I have split our expenses up due to my job having me out of town most of each month. The current split is around 65/35.
I've updated my Progress page to reflect June's changes.
Be sure to not miss out on any posts from Passive-Income-Pursuit and sign up to receive them by email.
How did you do on your budget for the month? Is there anything you're going to focus more on in May?