October wasn't a great month for expenses but I did finally see an improvement back below $2,600 for the month. Total expenses for the month came to $2,591.59 which was about $50 less than my YTD average through September. The worst categories continue to be food and miscellaneous. The miscellaneous category and restaurants were both pretty bad this month because of the issues with our son Lucas. When you live on a hospital couch that really limits your healthy cooking/eating options. But I got to spend time with my wife, who is catching the brunt of the problems, and of course spend time with Lucas, well kind of. October was a nice reprieve from the increased expenses of the last few months but unfortunately I expect November to be a return to higher expenses. Hopefully not but it's what I realistically expect. My average monthly expenses through October are now at $2,636.54 which is a $5 decrease from September.
Dividends and passive income didn't match September's record month but it was still really solid and my highest total for the first month of a quarter. I received $232.72 in dividends and another $2.85 in interest for a total of $235.57 in passive income. Passive income sources covered 9.54% of expenses which was a 0.8% increase from July. There's still a long way to go to reach 100% but I'm working on it slowly but surely. As a dividend growth investor seeking financial independence, my goal is to eventually have enough dividend income coming in on a monthly basis to cover all of my expenses and allow me to consider early retirement. So it's great to see that the long-term trend is higher. I also earned $159.13 from my online activities, well it was earned in previous months but paid out in October. Adding that to my passive income sources brought my non-day job income source expense coverage to 15.98%.
My FI Income, monthly income based on the 30 year US Treasury bond yield of 3.06% using my net worth excluding traditional retirement accounts, came in at $685.33. That ended up being a $15 decrease from September due to the decline in the 30 years Treasury yield from 3.21% to 3.06%. My FI Income for October covered 27.75% 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.
Overall it was a decent month for my budget and a much welcomed normalization of total expenses after the last few months were well over budget. I'm hoping that November will build on the progress from October but I'm not going to be surprised at an increase in expenses either.
I've updated my Progress page to reflect October's changes.
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How did you do on your budget for the month? Is there anything you're going to focus more on in November?