Setting New Goals [May 2014]

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Setting New Goals [May 2014]

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Is it just me, or is it June? That means it’s time for a monthly update on my finances from May.
May was a great month for dividend growth; however, I overspent my budget.

Expenses: $988.10
Dividend Income: $139.60
Percentage of expenses paid by dividend income: 14.1%

J. Curtis Webb Passive Income Versus Expenses May 2014

My budget for the month of May was $775, or exactly $25 per day. I went $213 over budget, AND I have an additional car expense that I’m going to amortize over the next 6 months. The car expense came to $300, and I did not apply any of it to this month’s expense.

Digging deeper, I found that I was way too liberal in my food spending habits this month. Groceries for the month came to about $150, slightly higher than normal, but that’s fine. What killed me was eating out: a couple trips to Qdoba, Bagger Daves, Atwater Brewery, and One Eyed Betty set me back $180. Other than that, I didn’t really go well over budget in any category. I did buy a new polo for $18, and I regret that purchase. Lastly, I spent an extra $100 during my European Trip. That put me over the edge. Since my budget is ultra-lean, I don’t have much room for unexpected splurging.

The painless solution to this would be to forecast that next month I’m going to spend $30 per day, and thus $900 during the month of June. That would be the easiest solution, that way I can still go out to eat a couple times during the month, and I can still make a relatively aggressive goal.

I didn’t get to where I am, nor will I get to where I want to be by taking the painless solution.
A couple new goals that will help me hit June’s goal of $750:
• Only spend $100 for the month on going out to eat. Groceries will remain at $150.
• Bike to work four times during the month of June, saving roughly $15 in gas.

A budget of $25 per day equates to an annual budget of $9000. It’s a tough goal to make, but even if I miss the budget every month, the effort I put in will pay dividends… literally.


4 Comments

SpeedRacer

June 1, 2014 at 7:21 pm

Can’t wait to see the bike!

Josh

June 1, 2014 at 9:11 pm

Hoping to start biking this week!

Dividend Mantra

June 4, 2014 at 11:22 am

Josh,

Great looking month there. Your budget is impressive. Reminds me of my early days, although I was never able to get my spending quite down to these kinds of levels.

I’m curious about housing. For me, that was always a point of contention and my ability to reduce it significantly has escaped me. Right now, it’s very cheap because I’m renting a room from my sister. However, I expect this at some point to rise a bit when my lifestyle changes.

Do you rent or own? I’m guessing you rent a room?

Best wishes!

    Josh

    June 5, 2014 at 8:25 pm

    Hey Jason,

    Thanks for the comment.

    I’m currently renting a room for only $100 a month, but it’s a special circumstance that will expire soon. I’m looking into a few places in Detroit for about $250/month with utilities.

    I work in Detroit, so in doing so, I hope to reduce my gas/fuel expenditure by $50 a month.

    Josh

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