Monthly Expenses Report: October 2021

This is my Monthly Expenses Report: October 2021. The key to building wealth is to spend less than you earn and wisely invest the difference. Over the past 4 years, I have managed to save over 50% of my income each month. More money saved means more money to invest. The more invested means that money is now working for you. Thus, generating more money over time and increasing your wealth. Learning how to manage your finances and living within and below your means is an essential component to achieving financial independence.

Using the model of dividend growth investing, I am on course to achieving financial independence. Over the years, I have built a six-figure portfolio that generates dividend income each month. The results have been amazing! I also like to compare my monthly expenses with my dividend income. Once passive income is greater than living expenses, then financial independence is achieved. So here is October 2021’s expenses:

• Rent: $614.34
• Utilities: $120.77
• Internet: $79.99
• Cell Phone: $35.00
• Food & Supplies: $444.75
• Miscellaneous: $95.00

All in all, my expenses for October 2021 totaled: $1,389.85

This was a much more expensive month then I had wanted. As you can see, my electric bill was still high due to having the air conditioner on more this September (which was paid for in October’s bill). In addition, I spend more on supplies this month then previous months. Moreover, since I do my food shopping every Sunday, there were 5 Sundays in October. In other words, I had an extra week of food expenses added to my expense sheet.

Miscellaneous expenses were also higher this month. Needless to say, I am looking forward to a less expensive November that will end with some Thanksgiving turkey.

Now let’s compare my month expenses to my dividend income. I will compare my expenses to my October 2021 dividends and my average yearly dividend income going forward. As of this post, my portfolio is set to generate $12,052 in dividend income over the next 12 months.

• • • October 2021 dividend income: $739.74 = 53.2% of my expenses covered in October.
    • Yearly dividend income average: $1,004.40 per month = 72.3% of my expenses covered in October.

Thus, this concludes my monthly expenses report: October 2021. Writing these numbers out like this is really quite exciting. It helps you really get a good grasp where your financials are, where they are going, and how far you progressed. I am getting closer and closer to covering all my expenses. Financial independence is obtainable in the next few years, but I won’t stop there at the bare minimal. I will continue work towards my goals and build my dividend dynasty!

So, how about the rest of you? Do you track your monthly expenses? Also, how close are you to covering expenses via passive income? Let me know in the comments below!