Monthly Expenses Report: July 2021

This is my Monthly Expenses Report: July 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, generating more money over time. As a result, your wealth increases. 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 July 2021’s expenses:

• Rent: $720.38
• Utilities: $81.54
• Internet: $79.99
• Cell Phone: $35.00
• Food & Supplies: $343.02
• Miscellaneous: $70.00

All in all, my expenses for July 2021 totaled $1,329.73

As you can see, my utility bills are rising since I have had the air conditioning on much more. I expect the electric bills to be elevated at least until the end of September. In addition, there was a temporary “assessment fee” that was put in place by the buildings board 5 months ago. This fee added $106 to my rent each month. August is the last month for that fee, then my rent will drop $106. Needless to say, I am very happy that fee will disappear after this month. Other then that, the bills were as expected.

Now let’s compare my month expenses to my dividend income. I will compare my expenses to my July 2021 dividends and my average yearly dividend income going forward. As of this post, my portfolio is set to generate $11,770 in dividend income over the next 12 months.

• • • July 2021 dividend income: $731.50 = 55% of my expenses covered last month.
    • Yearly dividend income average: $980 per month = 74% of my expenses covered last month.

Thus, this concludes my monthly expenses report: July 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!