Monthly Expenses - May 2022 - My Dividend Dynasty

June 13, 2022

Monthly Expenses 4

Monthly Expenses – May 2022

These are my Monthly Expenses – May 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.

The results have been amazing! Over the years, I have built a six-figure portfolio that generates dividend income each month. I am currently making over $1,000 in passive income each month while I sleep.

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May 2022 – Monthly Expenses

So here is May 2022’s expenses:

Rent: $614.34
Utilities: $59.87
Internet: $79.99
Cell Phone: $40.00
Food & Supplies: $437.83
Miscellaneous: $74.20
Amazon: $39.50
Home Insurance: $220.00

All in all, my expenses for May 2022 totaled: $1,565.26

As you can tell, June is an expensive month for me due to my home owners’ insurance being due. I spent more on food and supplies the month as well.

Since I do all my food shopping on Sunday morning and there were 5 Sundays in May, I had an additional week of food expenses.

Surprisingly, however, I spent less this May then last year. So, I guess that’s a plus in my book.

Dividends versus Monthly Expenses

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.

Now let’s compare my month expenses to my dividend income.

I will compare my expenses to my May 2022 dividends and my average yearly dividend income going forward. As of this post, my portfolio is set to generate $12,645 in dividend income over the next 12 months.

May 2022 dividend income: $646.21 = 41.3% of my expenses covered in May.

Yearly dividend income average: $1,053.79 per month = 67.3% of my expenses covered in May.

Conclusion

Thus, this concludes my monthly expenses for May 2022. 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!

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4 comments

MelissaJune 19, 2022 2:35 pm

Congratulations on your success to date on your path to financial independence. Saving over 50% of your income to invest is remarkable. Your tracking of all spending/expenses is crucial to understanding our finances. A lot of people don’t do this because they find it overwhelming (and perhaps because it can be an uncomfortable eye-opener). Your pointing out why May spending exceeded April with the additional grocery day is an example of how well you understand your spending. This blog would is a great resource, especially for those wanting to find ways to add more to their portfolio.

My Dividend DynastyJune 19, 2022 2:57 pm

Thanks for your comment Melissa! 🙂

I believe that everyone should track their expenses each month. Indeed, many would find it uncomfortably eye-opening. But that is the best way to make positive changes and find new ways to save more. Every dollar counts! 🙂
My Dividend Dynasty recently posted…May 2022 Dividend Income plus Recent Buys/Sells

Dividend PortfolioJune 26, 2022 2:08 pm

Excellent post!

I don’t track my expenses the way that you do. In my monthly dividend income reports, I do have a section that compares my dividend income to a few (not all) of my expenses, but I do see that there is value in tracking ALL of the expenses. Moreover, the fact that you are able to track your expenses from year to year shows whether you are making annual improvements in keeping your expenses under control.

Thanks for the inspiration MDD. I might start doing this publicly myself. I think part of the reason why I haven’t is that I am so far from retirement (11 years) that it seems overwhelming. But it’s good to start somewhere.

In any case, congrats on a solid post and potentially being able to reach financial independence in as little as 24 months.
Dividend Portfolio recently posted…What If?

My Dividend DynastyJune 26, 2022 5:58 pm

Thanks DP! You should give it a try. The results may be shocking, but you will likely find new ways to save. That is all money you can put to work for you. 🙂
My Dividend Dynasty recently posted…Make $1,000 a Month in Dividends

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