Wednesday, October 11, 2017

Income/Expenses: September 2017

Another month has passed and it is time again for my monthly Income/Expenses report. 

In these reports I highlight what income I made during the month, what sources all of the income came from, and where it all went on the 'expenses'-side; showing all purchases by category...every dollar! Ideally, when it all is calculated I achieve a high savings rate, and then I post that to my Savings Rate tab for month-by-month tracking of progress.

General thoughts on this month: This was another 'standard' month for us. Nothing exciting, nothing extraordinary, but simply discipline and sticking to the budget we've created. Unfortunately we are MASSIVELY in debt at the moment thanks to the purchase of our 4th rental property, so I CANNOT WAIT to have all of that paid off.  Here are the numbers:


General Thoughts on INCOME:
1) Very little change to Income this month. And we really haven't pursued any new sources for growth over the last few months and I do not anticipate any major increases (or decreases) in the foreseeable future, so I imagine income will continue to hum along at close to the above amount.

General Thoughts on EXPENSES:
1) Expenses were again pretty reasonable across the board. I had to buy new running shoes, new soccer cleats, and just a few smaller items that couldn't really be avoided, but overall we kept the budget mostly in check.  You'll notice our two 'catch all' categories (Shopping and Everything Else) really were not too high.

We thankfully hit close to 40% for our savings rate. This month's rate was able to raise our annual average for 2017 to above our goal # 5 amount of 28%/month. I've updated my Savings tab that shows every month since Passive Income Dude was launched as well.  

Remember - it doesn't matter how much you make; it is how much you keep!

Thanks for reading!

Dan

7 comments:

  1. PID -

    Nice & solid savings rate. Nothing wild, but also curious - how many miles are you driving each month? Appreciate the response, talk soon!

    -Lanny

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    1. Hey Lanny, thanks! Yea it should be a steady process of just sticking to the system for the next several months at least. As to your question, with my recent move to NY, we are hardly driving at all. We live 2 miles from my work and 2 miles from the grocery store, so thankfully our gas costs have decreased dramatically. Probably should get cable now! ;)

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  3. Solid month there. Good savings rate and a very nice dividend total. Keep up the good work.

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    1. Thanks Freezeman. Things are starting to level out into a boring, but continuous rhythm of what I think this month looks like...decent income, staying on top of expenses, paying down debt, and trying to maintain a high savings rate. Thanks for stopping by!

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  4. Getting your debt level down to a point that you are comfortable with seems paramount. I would be focused on that before investing more into dividend paying stocks. It's great that you now own four rentals but that did come with a debt cost. Keep building and growing. I like your detailed rental updates. Do you plan to write a post telling us the highs and lows of each?

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    1. Keith, yea it definitely is priority number one. And I completely agree - I haven't made any new purchases in several months, and I don't plan to for probably 2 more months.

      And as you say, my four rentals DO require upfront capital (like stocks do as well!, :), but it is completely worth it, if you can survive the short term capital crunch!

      I actually never intended to get my 4th property so quickly, so that kind of required some creative financing and debt. As to your question, I kind of highlight the specifics about each property on their individual tabs, rather than separate articles. I wish I had more time to write, but that wouldn't be a good use of time! What I can tell you though is that my yield on these properties is over 10%, so my total return is probably north of 20% on all of them, most likely. I may do an article covering that soon. But the property tabs should be updated every once and awhile as well and I think I will do that here at the end of 2017. Thanks for the motivation! :) And thanks for stopping by!

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