Monthly Expenses: December 2021

These are my Monthly Expenses: December 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 and increasing your wealth over time. 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 December 2021’s expenses:

• Rent: $614.34
• Utilities: $58.99
• Internet: $79.99
• Cell Phone: $35.00
• Food & Supplies: $261.16
• Miscellaneous: $184.31

All in all, my expenses for December 2021 totaled: $1,233.79

Overall, I can say December was actually pretty good in terms of expenses and saving. Miscellaneous expenses were higher this month, but it was the Holiday season. In addition, my utility expenses will remain lower for at least the next 5 months as temperatures remain low. Also, I am hoping for no new rent increases or fees like last year.  Here’s to health and smooth sailing!

Now let’s compare my month expenses to my dividend income. I will compare my expenses to my December 2021 dividends and my average yearly dividend income going forward. As of this post, my portfolio is set to generate $12,126 in dividend income over the next 12 months.

• • • December 2021 dividend income: $1,527.88 = 123.8% of my expenses covered in December.
    • Yearly dividend income average: $1,010.58 per month = 81.9% of my expenses covered in December.

Thus, this concludes my monthly expenses for December 2021. That’s another month above 80% expenses covered. I am getting closer and closer to covering all my expenses. Financial independence is obtainable in the next 18-24 months, 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!