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!