Sunday, March 1, 2015

February 2015 Passive Income and Expenses


February Passive Income and Expenses

Expenses
Cost
*Rent
$250
Groceries
$221.27
General Merchandise
$430.85
Car fuel
$120.48
Auto Insurance
$108
Restaurants
$99.75
*Utility Gas
$52.50
Student Loan
$75
Phone Service
$31.88
Post Office
$27.32
*Dish
$39
*Cable Internet
$37
*Electric
$34
Liquor
$58.75
Car Repairs
$23.35
Entertainment
$12
Total
$1621.15

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

Expenses were a little higher this month for a few reasons. This month the highest expense was general merchandise. I ended up buying an ottoman and coffee table because our old table broke and we needed a more comfortable living room. Both pieces of furniture were sold at a deep discount because the gentleman who owned the furniture store was going out of business. All of my other expenses were pretty much the same as last month. I am also happy to announce that my Dish Network bill will now be cut in half because I was about to cancel my service. They offered me a 50% reduction rate with no contract. This new rate begins next month. I have also cut out Brazilian Jiu-Jitsu classes which will save me $100 every month. My next step is to cut out that liquor expense. It seems to be putting a minor dent in my expenses and I may try to limit myself down to (1) six pack per month.

Passive Income
Earnings
General Mills (GIS)
$2.15
ATT (T)
$3.80
Verizon (VZ)
$3.10
Starbucks (SBUX)
$1.03
Hasbro (HAS)
$0.42
Apple (AAPL)
$3.88
YUM (YUM)
$2.60
Summit Hotel (INN)
$4.80
CD Interest
$0.44
Savings Interest
$2.98
Credit Card Cash Back
$19.00
Total Passive Income
$44.20

 

 

 

 

 

This month my passive income was a little lower than I expected. This is the first February that I am declaring my passive income so I don’t have anything to compare it to. I have been taking great strides in order to make March a very fruitful month in terms of passive income.
Now let’s take a look at all of the income sources:

Income Sources
Amount
Analyst Job (Net)
$1851.86
Ebay
$108.18
Dividends
$21.78
Interest
$3.42
CC Cash Back
$19.00
Roulette
$40.00
Amazon Refund
$72.30
Motif (Bonus)
$50.00
PC Repair
$21.07
Total
$2187.61
Savings Amount
$566.46
Savings Rate
25.89%

My savings rate was nothing to brag about this month. My goal is to save at least 37% of my total income annualized for the year. I am starting out way ahead with a 51.05% saving rate last month. A big part of this was because of all the cutting of my expenses I have been doing lately.

Month
Saving Rate
January
51.05%
February
25.89%
New Average
38.47%

I am still ahead of the game but not by much.
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 only 2.73% of my expenses were covered by the passive income from dividends, interest, and credit card rewards. Definitely not my best month but maybe March will make up for it.

How was your month in terms of passive income?

 

 

 

 

 

 

32 comments:

  1. Nothing to be disappointed at DM. If you look big picture, your savings rate was great and you're seeing some solid passive income. Time is your friend, and it will help drive the compounding of your invested assets to really allow you to increase your coverage from passive income.

    Thanks for sharing!

    ReplyDelete
    Replies
    1. W2R,
      I guess I can't expect to have a solid savings rate every month. I have been focusing a lot on decreasing expenses this year. Eventually I want to increase my monthly income as well. My end goal is to become FI by 55 years old, so I still have plenty of time. I just have to be patient and consistent is all. Thank you for your comment.

      Delete
  2. I'm curious what interest rate your getting on your savings account. Mine is only like 0.5 % or something terrible.

    ReplyDelete
    Replies
    1. CD,
      I am currently getting 1.05% APY for my savings account. It's the highest I have been able to find without needing to have any minimum in the account. I know Smarty Pig is also offering 1% at this time, but I have never used them. I would definitely shop around for a better rate.

      Delete
  3. Don't be disappointed. You're still doing better than your peers who don't even invest or pay attention to their savings rate. Keep up the good work.

    ReplyDelete
    Replies
    1. Tawcan,
      I agree with you about my peers being behind the ball. Everyone has different goals in life. I am happy that I am still ahead of the game at a 38% average. I know some bloggers who have been able to save as much as 70% of their income. That to me is pretty extreme. Thank you for stopping by!.

      Delete
  4. Congrats on the passive income, DM. Thats the money you didnt have to work for...slowly and surely that will snowball over time.

    Keep it up!
    R2R

    ReplyDelete
    Replies
    1. R2R,
      I can start to see the snowball slowly accumulate. The first 10K that I managed to save was extremely hard. The next 10K got much easier with the help of compounding and cutting expenses. This year is starting to look very good, and so far I am on track with all my goals. Thank you for the compliment!

      Delete
  5. DM,

    Another month of passive income you didn't have to work for. Slow and steady is the name of the game. Before you know it, passive income will be covering 10% and then 20% of your expenses. Then it's all gravy from there. :)

    Keep it up!

    Best regards.

    ReplyDelete
    Replies
    1. Mantra,
      I would love to have my passive income cover 10% of my expenses. This may come quicker as I start to cut even more expenses throughout the year. Eventually I want to work on increasing my monthly income as well. March is going to be a very good month for passive income and I can't wait to see what your numbers look like. Thanks for stopping by!

      Delete
  6. Love the breakdowns. Seems like the key to your finance growth will be your saving rate. Keep up the budget and keep a close eye. Maybe take a side gig like uber to pump up the income even more.

    ReplyDelete
    Replies
    1. A-G,
      I have never looked into Uber, but it sounds like a decent side gig for someone who wants a little side income. In addition to decreasing expenses I am trying to figure out ways to also increase my monthly income. I may have to increase my selling on Ebay as well. This will allow to increase my savings rate. Hopefully I will get a raise at work in less than a year, but I just started so I can't ask at this point.

      Delete
  7. This is great progress and it'll only go up from here. You should be proud that you've begun the steps necessary to reach FI at all. Stick with the plan and you're going to get there! Excellent month and thanks for sharing!

    ReplyDelete
    Replies
    1. Ryan,
      Thanks for the words of encouragement. I have made a ton of progress in such a short amount of time. I am grateful for that progress, but it has come with some minor sacrifices as well. Working two jobs last year was brutal on me but that sped up the amount of money I was able to save. This year I am working one job but making the same amount. Thank you for stopping by!

      Delete
  8. DM,

    Another month of passive income you didn't have to work for that will grow from here. I've also started my journey to increasing my passive income even with alimony.

    ReplyDelete
    Replies
    1. FF,
      Congrats on starting your journey. Welcome to the community and I wish you the best of luck. March is going to be a huge month in terms of passive income. I'm going to keep plugging away at some purchases this month in order to maximize my dividends received for March and April

      Delete
  9. Mongrel,

    Pretty awesome to see your dividend income covering 2.73% of your expenses in February already. I think I'm going to keep track of that ratio too from now on.

    Keep it up! You're doing great.

    Cheers,
    NMW

    ReplyDelete
    Replies
    1. NMW,
      It's a great ratio to keep track of. To me that means that I am only 2.73% of the way to financial freedom. I still have a long way to go, but It's 2.73% more than my position last year. I can't wait to see that blue bar finally reach that first line. Its was struggling a little bit this month but at least my net worth grew a little.

      Delete
  10. Hi Mongrel,

    Your savings rate may be 'nothing to brag about', but mine is about half of that percentage, so you're way ahead! Be proud of that. :)

    Best wishes,
    DfS

    ReplyDelete
    Replies
    1. DFS,
      Thank you for stopping by and I guess I shouldn't be so hard on myself. I am always trying to push myself harder so that I can get away from working for someone else someday. I really would like to work for myself but I know I am going to have to be patient. Cheers to trying to grow our savings rate!

      Delete
  11. Your saving rate is very good and you've got a very decent amount of passive income. Stay confident that you'll work for yourself if it's what you're aiming to. With a growing passive income like this, there's no doubt it will happen.

    ReplyDelete
    Replies
    1. DivGuy,
      I am hoping to get into income properties somewhere in the near future. This will certainly be a great addition to my passive income if I play my cards right.

      Delete
  12. An off month once in a while is not a concern. As long as your dividends are increasing over a period of time with your expenses being constant or increasing at a slower rate, then will be increasing the % of expenses slowly but steadily.

    ReplyDelete
    Replies
    1. DGJ,
      I hope to decrease expenses a little more over time. I have seen a lot of progress this year with lowering expenses, but sometimes things to come up like car repairs and tax bills. Dividends certainly seem to be improving over time.

      Delete
  13. Slow and steady wins the race! It's great that you're also finding ways to cut down on expenses.

    It'll all pay off in the end! Keep it up!

    ReplyDelete
    Replies
    1. Seraph,
      I am still trying to figure out how to lower expenses even further in the upcoming months. Certain things I have no control over like car repairs which has been a big expense for me in March. I wish I didn't need a car but unfortunately work is 45 minutes away from me.

      Delete
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