Sunday, January 25, 2015

December 2014 Passive Income and Expenses

December Passive Income and Expenses

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.

Last 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. My intentions are to keep a frugal mindset for the year of 2015. I have already looked into cutting a few expenses which will be explained in next month’s review. Now let’s take a look at the passive income for December 2014.

Passive Income
Target (TGT)
American Realty Capital Properties (ARCP)
Johnson & Johnson (JNJ)
ConAgra (CAG)
Starbucks (SBUX)
Anheuser Busch (BUD)
Dunkin (DNKN)
Mattel (MAT)
Coca-Cola (KO)
Time Warner (TWX)
Kellogg’s (K)
McDonalds (MCD)
CD Interest
Savings Interest
Credit Card Cash Back
Total Passive Income









December was a great month in terms of 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 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 4.38% of my total income for the month which is quite horrible, but it’s much better than being in the negative for the month. 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 3.8% 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.






  1. Rental Income: Buy Store Capital at Loyal 3. Very solid asset to take part of rental income. Keep adding to your blue chip stocks at Loyal 3. I have own physical rental properties in the past and let me tell you, collecting a dividend is so much easier.

    1. I have actually considered adding store capital. I will have to take a deeper look because they went public not too long ago. I know reits can be much easier. However I think I can get more pleasure out of living in a nice suburban home. I have to weigh out the risks. Thanks for stopping by!

  2. Thanks for sharing your recent income and expenses with us. Those dividends are starting to roll in. Happy to see many names in common from your list above and my portfolio as well. I really would love more VFC but not at current levels. Perhaps with the strong dollar sales overseas will decline and impact the stock giving us better buying opportunities. Happy to see you back!

    1. DivHut,
      I was actually thinking of buying more VFC this week, but I might be going with MSFT instead. Both are really good long term plays. MSFT is getting ready to launch a new O/S which could be interesting. I am glad that we share many of the same companies. Thanks for stopping by!

  3. For rental income, doesn't it make sense to invest in some REIT stocks?

    1. Tawcan,
      I agree that it's much easier to own REIT stocks. I live in a really bad city in MA. and part of the reason of wanting to buy a home is to get away from my current living situation. The other reason is to bring in some extra rental income which is a bonus. Although REIT stocks are a better play, they certainly don't provide a better living situation for me. As always, thanks for stopping by.

  4. Saving 4.38% is better than 0%, which is how most everyone else lives. Thanks for sharing.

    Not to beat a dead horse here, but I own a rental house and wish I didn't. Rent is barely paying the mortgage and if something blows up (ac, roof) I'm screwed. Of course it's my fault as I paid too much.

    I actually have a great tenant with no complaints, but it is a black cloud overhead. I'd rather KO or JNJ send me money every month.

    1. Robert,
      I couldn't agree with you more. A bunch of people have told me the same thing which has let me always second guessing myself. I am certainly in no rush with a home purchase and I may change my mind. I definitely don't want to live in one of the worst cities in the US for the rest of my life, but I am willing to save as much as possible to get out some day. Thank you for the comment. I am hoping I can do better with my savings rate this month.

  5. That's a pretty impressive passive earnings for one month!

    1. XL Pham,
      Thank you for stopping by. It was one of my better months for 2014. I am hoping that 2015 will break records in terms of passive income.

  6. DM,

    Looks like you had a few one-off expenses which substantially affected your savings rate. I'm sure you'll be back at it next month. :)

    Keep up the great work. Those dividends are really rolling in now!

    Best regards.

    1. Mantra,
      I feel like I could have done a little better in December but it was a stressful month and I tend to spend away. I am back on track for 2015 and I am hoping to break records. I am projecting January to be a slow month in terms of dividends, but my savings rate should look much better this month. As always thanks for stopping by!

  7. Hey Mongrel,

    Great work. I wish I had $90 in passive income in just a month!
    My best month is at $55 currently. Well done!

    Best wishes, DfS

    1. DFS,
      I am sure you will get to $90 in no time. December was one of my better months, but I hope to be getting $90 every month. It's enough to pay for my phone and electric bill. Keep up the great work. I can't wait to see what you will be purchasing next!

  8. Any idea what you plan to do with your ARCP position? I also hold ARCP and now that they have eliminated the dividend, I am not sure what to do with it. The stock is about 30% down right now based on my purchase price and I am just waiting to decide on the next step.

  9. DGJ,
    ARCP has been a thorn in many investor's sides. I don't hold a large position here so my plan was to hold for now. I was waiting to see if they would start the dividend back up in a few months. I have not heard any news on this so far. I know some investor's have actually taken advantage of buying more shares while the price was low. I am not willing to take such risks at the moment and would rather use the money for safer investments. I am also down a little over 30% right now which kind of sucks, but the rest of my portfolio has made up for the difference.