Sunday, November 30, 2014

November Passive Income and Expenses

November Passive Income and Expenses

Another month has passed and it’s time to reveal what the expenses and passive income were for October. I have been trying to keep up with what is going on in the overall market and have sat on the sidelines. It’s been a very busy few weeks for me due to trying to find a better opportunity in my career. I had filled out several applications and had a couple of interviews lined up. If all goes well, I could end up in a solid position in the Information Technology sector making more money than I do at my current full time and part time position combined. Not only will I be making more money, but I will also be working a steady 40 hours instead of the grueling 60 hours a week that I put in. So overall I feel like this move will benefit my well being and my wallet.

                I do have to give myself a huge pat in the back for the stocks I have picked so far this year. I stayed away from the energy and financial sector due to the risks involved. Many times I have wanted to buy up shares of some of the energy giants and stuck to stocks like Kraft, Dunkin Brands, Walmart, Disney, and Apple. These stocks have rewarded me fairly well and I only wish I put more money to work when I had the chance. Even with the S&P down -0.25% on Black Friday, my portfolio was up +0.86%. So I am giving myself a tip of the hat and wag of the finger for picking some great companies so far this year. Overall it’s been a solid year, but I have made my mistakes as a beginner investor as well. Seadrill (SDRL) was one of those risky stocks I picked up at the beginning of my journey. I was chasing that yield and I understood the risks. This is why I only bought 15 shares of that company in the first place. Even if I lose out on that whopping $550 I invested in them, I still will be up on top.

                I am hoping to finish up the year very strong and I currently have some money sitting on the sidelines just waiting to get put to work. At this time I have no intentions of putting my hard earned money into the energy sector. I know there are some great deals in that sector that are too good to pass up, but I would much rather have my portfolio continue to dominate the S&P throughout the year. Companies like YUM, DISNEY, and KRAFT are more appealing to me at this time. It’s been doing well for me so far so I intend to stick to what I know. Clearly I don’t know much about the oil industry but I do know people will be spending money on KRAFT cheese and Star Wars movies for many years to come. Now let’s take a look at my expenses for the month:

Student Loan
*Utility Gas
General Merchandise
Car fuel
Auto Insurance
Brazilian Jiu-Jitsu
Phone Service
*Cable Internet
Post Office
Car Repairs

*These are expenses that are split between my significant other and I.

This month my passive income was much better than I expected. The passive income made up for the heavy spending this month. I am hoping that the passive income will keep increasing every month. December will most like be an expensive month because of the gifts I intend to buy for loved ones but this is expected. My intentions are to keep a frugal mindset and finish the year off strong. Now let’s take a look at the passive income for November.

Passive Income
Summit Hotel Properties (INN)
American Realty Capital Properties (ARCP)
Hasbro (HAS)
Apple (AAPL)
Kraft (KRFT)
1.5% Cash back Credit Card
Savings Interest (.95% APY)
CD (1.15% APY)
Total Passive Income






This is the first time that my total passive income has been over $100 in a single month. This is somewhat of a milestone for me and I am hoping to keep going until I can finally cover all my expenses with passive income. This will essentially make me financially independent from the rat race.

Now let’s take a look at all of the income sources:

Income Sources
R.C. Job (Net)
I.T. Job (Net)
CC Cash Back
Savings Amount
Savings Rate

The cash back rewards have been a great help this month because of all the purchases I made on Loyal3. These cash back rewards are passive income because I don’t have to work extra and I am not holding a balance on my credit card. Therefore each month I am getting free money that I can receive in a paycheck or put it towards my current balance. I was able to save 37.61% of my total income for the month which isn’t bad at all. I would love to get to 50% at some point but this is going to require some more discipline and patience. Now let’s see how much of my expenses were covered by the passive income.

This is the most exciting part of this post because I can see how much of my expenses were covered by my passive income. This month 5.7% of my expenses were covered by the passive income from dividends, interest, and credit card rewards. I would love to add rental income to that equation someday but for now I am happy with my progress.

How well did you do in November?





  1. Thats a good savings rate. Congrats on the passive income and on keeping your expenses under control.

    Best wishes

    1. R2R,
      Thanks for the support and I feel like I am finally grasping what it means to make money work for you. I am hoping my savings rate will increase if I position myself into a better career. This would make 2015 a very good year for me in terms of having more money to invest.

  2. DM,

    Congrats on passing $100 in a single month! May it be simply the start of many, many more.

    Expenses also look pretty solid. I'm still jealous of that cheap rent. Keep it up!!

    I hear you on energy. I'm allocated pretty heavily there already, and at rather solid values for the most part. So I probably won't be going too crazy unless things get really out of hand. Just like I'm confident people will be going to see Star Wars, I'm confident they'll need to put gas in their car to get to the movie theater. :)

    Best regards.

    1. Jason,
      I have been keeping myself accountable with expenses and I am fortunate to have a low monthly rent. I also live in one of the worst cities in MA. when it comes to drugs, crime, and poverty. I am sure you know what thats like since you were a former resident of Detroit. I think you will come out on top with all those energy buys. I wish I could time the market because everone has an oppinion about when oil might rise again. I might consider an energy play just to sneak in because I dont have anything invested in that sector. However my portfolio would be fine because I dont feel like I need to be invested in every sector. I am working on a post with some upcoming buys for the month. I also look forward to seeing your plans foe December.

  3. Good luck on your interviews! Sounds like you have some great opportunities lined up. Who wouldn't want to work less and earn more? :)

    1. Seraph,
      Thanks for the words of encouragement. The future looks bright if I can land a great career. I'll certainly be able to invest more so that I may enjoy earlier retirement. At the same time I will continue to keep expenses as low as possible. The added bonus is that I will be working less hours!

  4. Hey! sending good energy and prayers your way for getting a better job! sounds like a great opportunity! Congrats on reaching $100 in passive income!

    1. HHWG,
      Thank you very much! After multiple interviews, it seems I might be headed to a great career path. The extra income will help expedite my passive income. Very exciting stuff happening for me at the end of a hard working year.

  5. Unfortunately it appears Loyal 3 is no longer accepting credit cards to fund your account. Understandable since the cost of accepting them is somewhere in the 2-3% range. Plus, I think the CC companies didn't like the approach. Too bad, as this was one of the reasons I had opened an account.

    1. MIB,
      I agree that the news was disappointing. I invested over 4k right before they took down the CC option. I will still use L3 for purchases because it is free trading. UL, YUM, DIS, and SBUX are all on my watch list.