Monday, December 4, 2017

Income & Expenses For November 2017

Since 2014, I have been tracking my monthly income and expenses. You can see a breakdown of every penny I earn and spend. For perspective, this budget is for a household of two in a small US city. By documenting my journey, I aim to demonstrate the feasibility of saving a significant portion of your income and provide some ideas and inspiration for your own budget.

Below are my income and expenses for November 2017. You can see all my monthly budgets here.

Nov 2017
Income
Wages$13,171.36
Dividends$258.84
Other Income$128.52
Total Income$13,558.72
Expense
Federal Income Tax$1,454.58
Federal Tax Pmt/(Refund)
FICA-SS$427.02
FICA-Medicare$99.87
Housing$500.00
Student loan repayment$35.70
Food$70.14
Gasoline$18.90
Cell phone$12.28
Electric$26.44
Clothing/laundry$8.00
Other Expense$9.41
Total Expense$2,662.34
Ex-Tax Total Expense$680.87
Surplus/(Deficit)$10,896.38
Before Tax Saving Rate80.36%
After Tax Saving Rate94.12%

Income
Wages remain my primary source of income by far. Dividend income hit a new 12-month low, which is somewhat disappointing. Next month's dividend income should make up for it though.

Here is a chart of my dividend income by month for the past 13 months:


Total dividends for the trailing twelve months: $15,621.50, up 21.8% from a year ago.

Expense
Expenses were kept low this month. The $9.41 other expense was for a bike pump from Walmart. 


Total expenses for the trailing twelve months: $9,901.29, up 5.34% from a year ago.


Dividend to expense coverage ratio = 1.58, hovering at an all-time high.



The chart below shows my TTM dividend (red line) versus TTM expense (blue line) since I started tracking in 2014. Ideally, the dividend line should stay well above the expense line and increase with time at a faster pace than the expense line. On this metric, I have not been doing too badly, but would like to put more distance between the two lines in order to afford me more freedom.

Savings
My after-tax saving rate was 94.12% for the month of November 2017, exceeding my 90% saving rate target. I am confident that my saving rate will average well above 90% for the year.


Thanks for reading!