Monthly Expenses: February 2022

These are my Monthly Expenses: February 2022. Why track your monthly expenses? Because budgeting and planning are important for your financial well-being! Learning how to manage your finances and living within and below your means is an essential component to achieving financial independence. 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.  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 February 2022’s expenses:

• Rent: $614.34
• Utilities: $66.48
• Internet: $79.99
• Cell Phone: $35.00
• Food & Supplies: $322.15
• Miscellaneous: $34.20
• Amazon: $47.97

All in all, my expenses for February 2022 totaled: $1,200.10

Overall, this was a much less expensive month then January 2022. My expenses would have been even lower; however, I bought a new vacuum from Amazon. My old vacuum was at least 10 years old, it was small, not as powerful, and its engine was definitely starting to go. My old vacuum just wasn’t picking up the dust and dirt. In other words, it sucked!

So, it was time for a new vacuum, especially after January’s beg bug nightmare. Thus far, the new vacuum had been working great and my rug is looking super clean. I say it was a good buy:

Now let’s compare my month expenses to my dividend income. I will compare my expenses to my February 2022 dividends and my average yearly dividend income going forward. As of this post, my portfolio is set to generate $12, 504 in dividend income over the next 12 months.

• • • February 2022 dividend income: $716.56 = 59.7% of my expenses covered in February.
    • Yearly dividend income average: $1,042.37 per month = 86.9% of my expenses covered in February.

Thus, this concludes my monthly expenses for February 2022. Gosh, I am nearing 90% expenses covered. I am getting closer and closer to covering all my expenses. Financial independence is obtainable in the next 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!