Sunday, July 5, 2015
June 2015 Income and Expenses
The amounts below are cash amounts and are net of taxes, insurance, 401k contributions, HSA, etc. In other words, the amounts are what get deposited and withdrawn from my accounts.
Day job (take home pay) --- $15027.40
Dividends/interest --- $1855.27
Closed options income --- $140.26
Total net income --- $17022.93
Expenses --- $3239.46
Savings --- $13783.47 Rate --- 80.97%
So what happened during the month of June? Well first of all, it was by far my highest income total of the year and was also the most money I have ever earned in any month at my job. To be fair, $1935 was actually a bonus that I had earned back in April, but I received the payment in June. Like I mentioned in the opening paragraph, I just add up the monthly debits and credits in my checking account regardless of when the money was technically earned. Even without the $1935, this was still my best income month for 2015.
On the passive income front, I was just a tad shy of $2,000 including my earned option premiums. Nonetheless, I am ecstatic over the results and will continue to invest heavily (unless I change my mind yet again). I keep saying that I would like to work on building up cash so we'll see how things play out.
Expenses were subdued this month much like the "quiet before the storm" and I was able to reach the very difficult 80% saving level for the second time this year. During July and August, I will have a couple of annual and semi-annual expenses to deal with...namely my yearly home owner's insurance premium, my semi-annual auto insurance premium, and finally a lot of vet bills that were incurred here recently. Sadly at sixteen years old, my dachschund passed away. He will be missed terribly by my wife and I. We would gladly take 0% savings rates for months on end if the little rascal could still be with us for a while longer. This is a sobering reminder that in the end, money is just dirty paper and numbers on an account statement. Relationships are the most important things in our lives.
In any event, I hope each of you continues fighting hard for financial independence knowing there are no silver bullets or lotto tickets involved in the journey. Fierce determination combined with relentless effort is what it takes.
Here are my savings rates for 2015.
January --- 46.72%
February --- 67.78%
March --- 80.00%
April --- 35.97%
May --- 71.72%
June --- 80.97%
DEFY MEDIOCRITY
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MDP,
ReplyDeleteSorry to hear about your dog. You're right that all of this is meaningless without the relationships (human or otherwise) being the most important things in our lives.
Your numbers are again very impressive. It makes me try harder to earn more, and invest more, and keep on fighting.
D4s
Div Son,
DeleteDefinitely focus on trying to earn more. You can be frugal, but eventually in order to reach some sort of financial independence you must expand your means. Sometimes it takes years for things to develop, but don't stop trying to advance your career.
MDP
Nice month MDP!
ReplyDeleteSorry to hear about your dog. I know what it is liked to be close to a dog. My dog Buddy is almost 6 now and I know I will be sobbing like a baby when he passes.
That 80% savings rate is amazing!!!
I am still working on putting my June report together, but so far I like the trend :)
Cheers!
GYFG,
DeleteI just saw your results from last month. Off the charts!!! Enjoy the time with Buddy. The term "man's best friend" is spot on. I still have two other dogs and two cats so my zoo is still pretty full.
MDP
Family, friends, relationships and the memories you make with all is where true joy lies in our lives. Sorry about your pup.
ReplyDeleteOtherwise, your numbers continue to be impressive! You'll reach financial independence at an incredible rate with saving 80% of your income, congrats.
ADD
ADD,
DeleteIf only I could hit 80% every month. I do feel good knowing that I am just about at the point where my bills could be paid with a part time job at Taco Bell. :-)
MDP
Awesome month MDP. You're breaking record highs of your own. It's awesome! Feels wonderful traveling down this path.
ReplyDeleteI know how you feel because I lost my dog Rocky about 4 years ago due to Telescoping. It's a disease where whenever he pooped, his intestine came out abit. Me and my wife spent almost 3k for 2 surgeries and he still died a week later. I havn't had a dog since just because they need so much care and time. I'm just so busy with the business and kids.
Give it some time and maybe you'll be ready for a new pup.
Thanks for sharing and take care.
DH,
DeleteWow! I have never heard of that disease before. It sounds absolutely awful. I understand not wanting another dog with everything going on in your life. I actually still have two dogs and a couple of cats as well. Never a dull moment.
MDP
Sorry to hear about passing of your dog.
ReplyDeleteVery impressive savings rate. Congrats on being above 80%.
Tawcan,
DeleteThanks buddy. 80% is a magical place and as I mentioned in a comment above, that damn near puts me at FI. Work 10 hours a week at Taco Bell/Walmart etc and my bills are covered.
MDP
MDP,
ReplyDeleteGreat month money wise, 80% savings those paychecks are pretty awesome. You passive income is looking better all the time.
Sorry about the dog, I just became a dog owner recently, but I remember losing a pet as kid. Just sucks.
- Gremlin
DG,
DeleteI like the passive income, but I really need to lower my oil exposure a bit. Unfortunately it continues to be where the value lies.
MDP
Sorry to hear about your dog. Losses are always tough. Amazing job on both the income and expense side of the equations!
ReplyDeleteFF,
DeleteThanks for stopping by and commenting. Income and expenses are great, but I really want to get the passive income higher. I still have a lot of work to do.
MDP
I'm sorry to hear about your dog. I'm sure that is tough to deal with.
ReplyDeleteAmazing income. Do you ever talk about what you do for a living that affords you such a high take-home? Thank so much for sharing.
Eric
Eric,
DeleteI haven't mentioned my job yet, but I may as I get a little closer to retirement. Some may think it is O&G related since I am from Houston, but it not. However, I am in sales and if things slow down too much, I may be impacted. So far everything is going well. It would be nice for oil prices to go back up for both my portfolio and my job. :-)
MDP
Hey Div.Pipeline.
ReplyDeleteIm from Germany and i always asked myself why someone with that much income (=you dont need the dividends now), doesnt invest in a ETF which is swap based so you dont pay any taxes before selling.
Imagine 30-40Years with compound interest and tax defferal going along with 6-9% yealy yield from the DAX/S&P 500 for example.
and when you want to retire you sell your portfolio and directly invest in high yielding stocks and youre good.
With this strategy you will gain alot more passive income that with investing and paying taxes and fees all the time.
Or am i wrong? im just curious
Hope you can help me out!
Anonymous,
DeleteGiven the fact that the S&P 500 outperforms most fund managers in any given year and practially all of them over a period of 5-10 years, I should take your advice and just buy the SPY etf.
Why don't I? Well for one the same reason I like to fish instead of going to the supermarket to buy food. Investing in individual stocks is fun for me and I really like focusing on companies that pay dividends as I love passive income. Most ETFs don't yield very much.
With that said all of my retirement funds are invested in Vanguard S&P 500 indexes and bonds.
I'm pretty diversified when my entire portfolio is viewed.
MDP
I have the same general idea about fishing in the stock market, I like the thrill of buying something knowing that it's going to pay me to own it and own it for a long time. I have some safety net in place with my 401k that does the index inversting, but I like to purchase the individual ones in my own accounts.
ReplyDeleteDuncan's Dividends,
DeleteIt sounds like we have similar investing styles. I plan on a drawn down strategy with my 401k to supplement my dividends in retirement. I like the idea of seeing different companies paying me throughout each month.
There are many investing styles and they each have different benefits. I personally like dividend investing and plan to continue using this strategy going forward.
Thanks for stopping by and commenting!
MDP
Hi there -- Sorry to hear of your loss. I can imagine how much you and your wife miss your little dachschund. A lifetime of 16 years is quite long!
ReplyDeleteYour savings rate of 80% is amazing and very inspiring. We're not close to that and will never be, living in one of the most expensive areas in the US. Keep up the good work and take care!
FerdiS
Ferdi S,
DeleteLiving in Houston may not be glamorous, but with a thriving economy, no state income tax, and very inexpensive housing, it is simply fantastic for building wealth.
MDP
Sorry, I was just kicked away when I saw your income. Are you running your own business or are there any one time payments included? If I compare your passive income to your active income, one could say it will be even harder for you to achieve FI, as the passive income only covers 15 % of your active income. Based on that number I do not feel bad anymore, as my passive income covers more of my (so much lower) paycheck! =)
ReplyDeleteKeep up the great work!
BM,
DeleteThere was a one time bonus of about $1900 and of course dividend income is highest in the last month of each quarter. I don't run my own business right now. As far as passive income only covering 15% of my active income, that is irrelevant as you can see by my 80% savings rate. My spending is very low so I could live on much less that I actually earn. That is the key to FI and I plan to continue keeping expenses very low regardless of current income.
MDP
Yes you are absolutely right with that point of keeping expenses low! I have no worries that you can achieve FI very soon. I think you have a great headstart with that income! Maybe you can share some advise For people who would like to increase their income too? For sure there would be interesting stories to tell!
Delete