Income/Expenses For September 2014

budgetI’ve been tracking my income and expenses online since I initiated this blog back in early 2011. I do this for a few reasons.

First, I want to prove to the world that it’s possible to become financially independent at a relatively young age even if you don’t make a lot of money. I don’t make a six-figure income. I never have and I probably never will. But it’s not necessary. Oftentimes, people focus on income too much. Expenses are just as important, because if you make $200,000 per year, but spend $190,000 of it, you’ll never become financially independent. Conversely, bringing home $40,000, and learning to get by on half of it means you’ll likely be able to retire if you want to within 15 years or so. Making less means you have less to save, but spending less means you need less to retire off of.

The second reason I do this is because I want this to be a live look at one man’s journey. You can find countless books by financially successful people, but often it’s long after they’ve completed their trek to significant wealth that they’re then telling you how they did it. It’s easy to postulate. It’s much more difficult to actually show the whole process in action, for better or worse.

And finally, knowing that every dollar I spend is going to be published for the world to see serves as reinforcement to stay frugal. There’s been more than one occasion where I decided against a particular expense after realizing I might be a bit embarrassed to write about it.

So each month I will post my income and expenses for the previous month. I track every dollar in and out, so what you see is exactly what I earned and spent (rounded to the nearest dollar).

Income from September 2014:
Online Income$2,753
Dividend Income$746
Other Income$25
Total Income$3,523
Expenses from September 2014:
Auto$300
Rent & Utilities$250
Student Loans$224
Health Insurance$216
Fuel$171
Restaurants$156
Hosting$153
Groceries$130
Gifts$86
Fast Food/Takeout$81
Auto Insurance$69
Pharmacy$38
Email Services$20
Amusement$18
Everything Else*$165
Total Expenses$2,071

Income

This is the third full month now that I’ve been living without a traditional paycheck. I no longer drag myself down to the dealership and punch in for over 50 hours per week. I instead write for a living, and it’s been one of the single greatest decisions I’ve ever made. If you’re curious how I generate online income, I discussed that a few months ago. The online income I generated this month was within a few dollars of what I received last month, which is wonderfully consistent. Even better, I’ve been increasing my freelance workload fairly substantially lately. As such, I expect to generate even more income in this area of my budget. Again, I thank all of you readers and those parties hiring me for writing from the bottom of my heart for supporting me!

Dividend income broke a new record for me. September represents my all-time high for passive income received during one month, and I couldn’t be more pleased about the progress I’m making here. It’s truly amazing to watch pennies turn into hundreds of dollars. I’m creeping ever closer to that big milestone of receiving $1,000 in dividend income for one month. I’m gunning for it!

The other income was related to $25 in cash back rewards I received from one of my credit cards. I really enjoy these little rewards. I’m frugal and don’t spend much money, yet I still receive what amounts to a nice little dividend payment every quarter or so. Nice! I’m getting paid to spend money where I would anyhow, and I pay off my cards every month so I never have interest payments. Plus, I use my Visa card pretty much everywhere, which makes me feel better as an owner.

Expenses

*The Everything Else category includes expenses I don’t have a regular budget for. In this case, the costs here were caused by having to get a driver’s license and car registration established in Sarasota, Florida after my extended summer vacation up in Michigan. I obviously made a mistake here, and wish I would have left my license and registration alone.

Health insurance went up. I signed up for Florida health insurance through the national exchange and picked the best bronze (HDHP) plan I could find, which was also the cheapest. I’m going to investigate this a bit further when open enrollment starts back up in November.

Although not reflected here, auto insurance went down slightly to $65 per month after registering for Florida auto insurance. That’ll change starting next month, but the change didn’t occur until toward the end of the month. This appears to be a pretty competitive rate. I’ve shopped three different providers, and nobody is even close. This is for max liability, comprehensive, and collision coverage with a $1,000 deductible for comprehensive and a $2,000 deductible for collision. I plan to delete comp and collision after the Corolla ages a bit, but they’re relatively small portions of my bill.

This will be the last month with $250 rent. It may look like this whole adventure saved me some money in regards to rent, but I actually paid a lot more. I paid my half of rent through July, and then paid for all of August’s rent by myself on the apartment I share with my significant other. Then I paid rent while staying with a family member up in Michigan. Starting in October, I’ll be back to paying my half of the rent on our two bedroom apartment, which is around $525 after utilities.

Fuel was obviously sky high. This is due to the massive 1,200 mile road trip back down to Florida. Now that I’m back I anticipate filling my gas tank less than twice per month, on average. So I’m anxiously looking forward to fuel bills somewhere around $50 per month.

Food was also quite high. I bought groceries for our household my first weekend back in late September, which brings me to an important change moving forward. I used to pay for only my groceries, while Claudia paid for her and her son’s food. However, when we would go out I would pay for dinner and entertainment. This worked for us because we were on slightly different schedules. I would come home from a busy day at the dealership and make myself something quick to eat, then I would promptly move on to writing or exercising. Claudia and her son would then eat a large meal later in the evening together. We would rarely eat dinner together during the week. This wasn’t explicitly to save money, but rather I was hungry as soon as I got home and I had to move through my schedule pretty quickly if I wanted to get everything done.

Well, moving forward we’re doing things a bit differently. We’re all going to eat dinner together during the week since my schedule has lightened up considerably. And we’ll simply be alternating the grocery bills. I pay one week. She pays the next. We will share the food and expenses associated with that. It’s an arrangement that we kind of mutually came up with, and one that works a lot better. Plus, I hate to cook, while Claudia loves to cook. This works out great for me. I’m now her “sous chef” as I help her out in the kitchen (getting her utensils, cutting various portions of food, setting the table, providing moral support), and we have fun at it. My diet has improved considerably, especially in regards to variety. Whereas I’ll simply whip up a sandwich or something quick/cheap if I’m by myself, we now eat stuff like Asian stir fry (probably 75% of our weekly meals moving forward), fajitas, Italian sausage, pasta, and fish.

Breakfast and lunch is mainly the same as it’s always been. However, I do get up early in the morning to eat breakfast with Claudia. Typically, that’s oatmeal, cereal, or occasionally eggs. Lunch is largely leftovers or sandwiches. Due to this change, I expect my grocery bill to go up a bit. But I hope to compensate that moving forward with potentially less expenditures on restaurants. However, I still usually pay when we go out.

All the other expenses were relatively in line. I’m looking forward to 2015 when the “auto payment” of $300 (my amortization of the cash purchase of my 2006 Corolla) drops off my budget.

Savings

I managed to save 41.2% of my net income this month. I’m slightly disappointed in that, as it’s lower than what I’ve historically managed. But at the same time I’m also extremely excited that I’m able to save substantial portions of my income while no longer working a conventional job. My quality of life has shot up through the roof, but my savings have only taken a modest hit. I have a lot more time now, which is somewhat responsible for our new household habits. Life is good! More time is what financial independence is all about, and that’s exactly what I’ve achieved.

My goal is to save 50% of my net income throughout 2014, averaged monthly. So far, I’ve hit rates of:

  • 48.8% – January
  • 21% – February
  • 59.1% – March
  • 51.6% – April
  • 18.6% – May
  • 72.9% – June
  • 59.2% – July
  • 34.8% – August
  • 41.2% – September

I’m now at an average of 45.2% for the year. I’m just a little off, but it’ll be extremely challenging to make up that much ground over the course of just the three months we have left this year. I’d have to average savings rates near 65% for the rest of the year to catch up, and I just don’t think that’s going to happen. But I’m not giving up yet! I’m going to give it my best shot and see just how close I can come to 50%, even with all the obstacles I’ve had this year. Stick around and let’s see how it turns out!

I expect October to be a substantial improvement on September’s savings rate. I’ve been writing more than ever, and the income is picking up nicely. Expenses should stay roughly in line, although we do have a BIG five-year anniversary celebration later this month. We’re very excited for that, but there will be costs involved. I’m optimistic I can cross over 50% for October.

Full Disclosure: Long V.

How was your budget for September? Save as much as you wanted? 

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

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85 Comments

  1. Awesome income from doing what you love and collecting the dividends! September was a good income month for me job wise, dividends were low but higher than many of my other months this year. Your online income is just rocking! I to had an expensive month as well, only managed to save 20% 🙁 On the bright side I think this October will be a new record in dividend income for me though!

    Enjoy the warm weather now that you’re back in sunny Florida! I’v had to start putting on warm sweatshirts!

  2. We didn’t save as much as I’d hoped (far from it) due to unexpected expenses that kept coming up – I hate it when that happens. 41.2% looks good to me! Good luck in getting as close to 50% as possible as a year average. Your income is great too – your online particularly is fab 🙂 looking forward to seeing the month when you pass $1,000 in dividend income!

  3. “My quality of life has shot up through the roof, but my savings have only taken a modest hit.”

    I’m so glad you included this statement. It’s not all about the numbers. Emily and I remind ourselves from time to time that we are saving for non-quantifiable, “quality of life” reasons. We’re not saving just for the sake of saving. Seems like you have a similar opinion. Keep up the good work!

  4. A great month overall that should become easier once you’ve been settled down in FL for a month or so. Congrats on generating the income doing what you love, as I’m sure it will only grow like your dividends! In that respect, good luck on knocking down that 1k monthly dividend barrier. I’m sure you will hit the mark very soon!

  5. Income lookin consistent in your time of transition which is good. If u anticipate increased costs in next few months u can always pick up some part time work to bring up income to maintain your savings rate. I know if uber was allowed in my area I probably would be giving rides Saturday nite for a few extra bucks just for fun. Good to see your online income is doing much of the heavy lifting. Hopefully soon your dividend income with match it in a year or two.

    Looking forward to seeing what you got up your sleeve for potential products you are working on!

    Good Day and Grind On!

  6. That’s wonderful with no 9-5 work! if I was able to just break-even with my income and expenses, I would leave right now!!

    Sometimes, I wonder how innovative, better and beautiful this world would be if human mankind is able to do what that they love doing and dare dream, without having to worry about the money all the time.

    You are doing fantastic.

    Best wishes.

  7. Great work, as always. Given your experiences with moving and associated expenses, a 42.1% savings rate is still solid! I’m glad you clarified about the rent; I was extremely jealous of that. I’d kill for a $250 rent! At least it’s not as bad as DC; my friend pays like $1800 a month for a 2 bedroom apartments. Insane prices …

  8. Your online income is amazing. It’s great to see people making money doing what they love. In many ways you are already free.

  9. DM,
    Your progress is a really awesome. Not a bad savings rate at all for not working at the dealership anymore. Your online income ($2753) annualized is now $33,000, approaching your old salary! Wouldn’t that be cool if you could surpass your old salary in a year? Dividends not to shabby either.
    -RBD

  10. DW,

    Hey, you still had a pretty good month over there. I’m really impressed by your ability to keep your expenses so low. One great thing about your lifestyle is that it won’t take much dividend income to set you free. 🙂

    Appreciate the support. I’m definitely happier than I’ve ever been right now. It’s amazing to be in this position to do what I love and still be able to march toward FI. I’ve got an extra skip in my step!

    The weather is cooling down just a touch here, which is most welcome. I think we’ll start seeing low 80s pretty soon – perfect beach weather. Although this time of year is wonderful up where you’re at, especially around the holidays. Enjoy it!

    Best regards.

  11. Nicola,

    I hear you. There are always unexpected expenses. In fact, unexpected should just be expected, right? It seems like it’s always something. 🙂

    The online income is definitely fantastic. I have zero complaints in that department. I count my blessings every single day, believe me! The fact that it’s actually increasing is just amazing. I’m writing more than I ever thought I would/could. But I think when someone who is driven is released from the shackles of the 9-5 (or 7:30-6) their true potential can start to shine. And that’s why I try to inspire so many people to achieve financial independence. Your true potential and passion is still out there somewhere.

    Thanks for dropping by!

    Best wishes.

  12. Jake,

    Absolutely! It’s definitely not all about the numbers.

    You’re right in that it’s hard to quantify quality of life, but it sure isn’t difficult to know when you’re happy and when you’re not. And I know that even though my savings rate is down a bit from my historic comfortable ~60%, my happiness quotient is way up. It’s a delicate balance, but I’m zoning in more and more day by day.

    Saving just for the sake of saving isn’t what this is all about, as you’ve discovered and as I’ve tried to write about. Though frugality is a lifestyle, money is just a tool. I don’t do all of this for the love of money. I do it for the love of being happy. I play the game I play because it’s the only way I know how to win my freedom.

    I hope you and Emily continue to find that balance…your zen. 🙂

    Cheers!

  13. Agent,

    Definitely. I’m looking forward to really settling down into a routine and seeing where that potential takes me. I hope to actually write a post at some point here discussing what the day-to-day routine looks like for someone who is basically already living as they would if they were financially independent. After all, even if I had all the money in the world my lifestyle would look largely like it does now. I hope to share that at some point once I’ve got a routine/schedule I can easily write about and share. 🙂

    Thanks for the support!

    Take care.

  14. Trader,

    Thank you! I’ve definitely found a nice balance these days. I’m still hoping to get my savings rate back above 50% over the long term, but I’m actually quite happy middling along at 40% while doing what I absolutely love. Life is good. 🙂

    I hope everything is just as good for you over there!

    Take care.

  15. A-G,

    Man, I hope to not have to need a part-time job at all. 🙂

    I don’t plan on taking something like that on at all. I’d rather actually just continue to max out my time writing and see where that takes me. If the online business really turned south, then of course I’d do what I have to do. But I hope to continue putting 100% of my resources into this.

    I’m grinding away for sure. Just trying to keep up with you! Haha.

    Cheers.

  16. PIM,

    Agreed. I imagine the world would be a brighter place if people made decisions irrespective of money. I’d love to get a peek at that alternate universe. 🙂

    Appreciate the support very much. I’m doing all I can to give this opportunity my utmost effort!

    Best regards.

  17. DD,

    I’d love to have $250 rent all the time. I still think the ~$525 I’m paying could be a lot worse, but cheaper would be nicer. 🙂

    I couldn’t imagine paying $1800/month. I suppose if the high income offset it then it is what it is. But, wow, I’d have to look into finding a roommate or something so that I could commit as much arbitrage as possible in a high-income/high-COL area.

    Cheers!

  18. John,

    Well, this is about as close to FI as I can possibly get without actually being there. Though passive income doesn’t cover my expenses, I’m doing what I love to do. It’s highly likely that I’ll continue to write well past the point of financial independence, so in many respects I’m living as I would like to.

    However, I’m still pursuing financial independence with just as much gusto as I always did, just with a bit less excess capital and a lot more day-to-day happiness. I was in the fast lane before, but stressed out at work. I’m now meandering my way there on a slower, but more enjoyable path.

    Keep up the great work over there. One day at a time. 🙂

    Best wishes.

  19. RBD,

    Thanks so much. I’m definitely progressing at a quicker rate than I expected or anticipated. I’m lucky in that things have kind of fallen into place. I also know that this could all change quite quickly, so I wake up every day with a lot of enthusiasm to keep writing and keep things rolling.

    That’s crazy how the online income has grown. I don’t think it’s impossible to replace my old salary with the income I make from my online endeavors, because there’s some scale involved there that working at a dealership doesn’t offer. It could take a while, but to know it’s possible gives me a lot of hope and encouragement to keep moving forward.

    Appreciate you stopping by. Thanks for all the support!

    Best regards.

  20. Hi DM,

    it seems like a solid month.My savings rate wasn’t high this month, only 25% since I paid my propertytaxes. But 25% is still better then most people in Belgium.

    Cheers,
    G

  21. Geblin,

    25% is still a great savings rate! Especially on an off month. Although we get kind of numb to these numbers since we talk about personal finance all the time, saving even just 15% of your income is admirable and impressive. Obviously if you want to be financially independent in rather quick fashion you’ll want to save closer to 40-60%, but I try to remember that most Americans are saving less than 5% of their income.

    Keep up the great work!

    Cheers.

  22. Stef,

    Ha! I appreciate the vote of confidence there. 🙂

    I’m going to give it my all. I’ve got a few tricks up my sleeve (I always do!), but it’s going to be a tough trip up the hill. The holidays are coming up, which will make things even more difficult. And our five-year anniversary celebration includes something particularly special/expensive. We’ll see!

    Best wishes.

  23. DD and DM,

    I live in the DC area (VA side), and 1800 for a 2 bedroom is sadly a good price. We have a 1 bedroom at $1495/month which is a good price, and had one prior at $1050/month (which is an awesome price). Some people make bank around here, but most don’t.

    Keep it up DM, one step at a time towards true FI and freedom.

    – Gremlin

  24. Rather than target the probably unreachable goal of 65% for the next 3 months, why not just target 50% for the next 3 months. I think if you hit 50%, you’re doing good!

  25. DM,

    If I could save 1% while not working a day job I would be elated, so you are definitely in a fantastic position at 41%. Hopefully during the next few months your expenses should equalize. In any event, it is go to see that despite some of the disruptions to your normal expenses you are still progressing towards FI. Keep up the inspiring example!

    MDP

  26. Gremlin,

    Thanks for sharing that!

    That’s an expensive area, but if you can make the appropriate income then it’s a good trade-off. However, I would promptly move to a much cheaper area, if possible, once I had sizable assets behind me generating substantial passive income. 🙂

    Best wishes!

  27. mikeschn,

    Well, if you reach for the stars and end up on the moon you still did pretty well, right? 🙂

    We’ll see how it goes. But shooting for a low number has never been my modus operandi. I’m going to give it all I’ve got.

    That being said, I won’t be disappointed at all with exceeding 50% over the next few months and ending up just short of 50% for the year. I’ve made some big decisions this year, some for the best and some not. But I’m a lot closer to freedom now than I was just six months ago, and that’s what I’m most proud of. To be able to save, say, 45% or so of my net income while going through all of these changes is still solid. And finishing the year strong puts me in a good spot for 50%+ next year.

    Thanks for stopping by!

    Best regards.

  28. MDP,

    I agree 100% I’m in a great spot. I’m really, really fortunate to be where I’m at right now. I’m not taking even a second of it for granted. 🙂

    I think that increased income and stabilizing expenses bode well for finishing this year strong and having some visibility for an accurate goal heading into 2015. I’m excited and optimistic!

    Thanks for all the support. Keep up the inspiring over on your side as well!

    Cheers.

  29. IP,

    Thanks, man. It’s been a long, long journey to get to this spot, but I’m really enjoying every minute of it. I’m working harder than ever! 🙂

    Take care.

  30. Debs,

    Thank you! It’s taken more than three years to get to this point, but it was worth every minute. I’m having a great time, even though I’m working really hard. I’m super appreciative of all the support that everyone is giving me, and I do my best to give back with the best content I can possibly produce. 🙂

    Thanks for stopping by!

    Best regards.

  31. DM,
    I am currently saving more than 50% of my income right now, but thats because I work two jobs 🙁
    I dont hate my job but I dont love it either. If I were in your shoes I’ll be considering myself that I am financially free already. Yes you work hard on writing articles but these are quality articles that you love working on. No boss, no deadlines, no 9-5 shift, no 50 hour work week (mine is worst). What are you gonna do when you are actually financially free, lay in the bed? I think you will still continue to write quality materials.
    Also have you thought about going overseas in the near future? You can document your experience, travel and write at the same time. Couch surfing baby! 🙂
    FFF

  32. FFF,

    Congrats on the high savings rate. I know how you feel right now, as I was basically working two jobs for years. I was working 50+ hours per week at the dealership, then busting my hump with writing. So there was a lot going on there for about three years. But it was all worth it. Anything worth having in life is worth working hard for. 🙂

    You are right in that I’m basically as close to FI as one can possibly get without actually being there. I truly love what I do, and I’d be living largely as I do now even if my dividend income were $50k/year. However, I’m still just as enthusiastic about chasing freedom as I was before because I want to truly know that every day I get up I’m making a conscious choice as to what I do, when I do it, and how I go about it.

    That’s a good question there in regards to traveling. My significant other still works full-time right now in the education field. So that’s really not possible right now. But she’s actually been all over the world. She lived in Oslo, Norway for a while and traveled all throughout Europe and N. Africa while she lived there. She’s originally from El Salvador, so she’s been all over Central America. She’s also spent some considerable time in Paris. We’ll see how it goes, but I think we may end up traveling down the road at some point. Funnily enough, she actually has a greater desire to see the US. She hasn’t seen as much of the US as she has the rest of the world, so she would love to RV it up or something like that. Who knows. FI allows anything and everything!! 🙂

    Thanks for dropping by.

    Best regards.

  33. You had an expensive month and no 9-5 job, but still managed to save 41.2% of your income. I’d call that a heck of a successful month!

    If it’s not too embarrassing, you should have a post dedicated to naming all those things you would’ve purchased if you didn’t have to report your expenses. 🙂

  34. Jason,

    Since a vast portion of my dividends is held in IRAs, and I never spend one single dime and reinvest the whole amount, would you consider that as income for the purposes of my savings rate or would you just consider open accounts that could actually be spent or used when you get it? Good job on the savings for the month.

    Keep cranking,

    Robert the DividendDreamer

  35. 2753 of this blog?

    you could tell me how much money (in number) you get into action to achieve this dividend?

    you’re my hero

  36. Hi DM,

    I see you’re a bit disappointed that your savings rate was around 41%, but keep in mind, this was without a typical daily job, so essentially, you have already made it, you can be a bit lenient on the savings rate. For me, 41% is a pretty good job. But if you need extra motivation to save more, It looks like a bear market might be coming, think about how many opportunities to deploy capital that will give you. One can hope… 🙂

    Awesome income from your writing!

    Best,
    DividendVenture

  37. I only managed ~40% saving rate last month. It’s funny how we are both slightly disappointed by this and yet compared to the huge majority of the population.. this is an overwhelmingly high figure! Keeping things in perspective is important and you can use this as motivation to challenge yourself further next month.

    It’s pretty awesome that you managed that 40% without having to go to a 9-5 job as well!

  38. Moving is always expensive–I’m impressed you’ve done it so cheaply! Nice! And, I love that you’ll be eating breakfast and dinner with your honey :). Mr. Frugalwoods and I actually get up earlier just so we can eat breakfast together and enjoy the morning with each other. Dinners together are also important to us–there’s just something very soothing and connecting about enjoying meals together.

  39. Congratulations on a great month, and again for joining back up with Claudia back in Florida. Remarkable throughout your transition this year is your consistently high savings rate WHILE LEAVING YOUR FULL-TIME JOB. You not only were able to cut back further when needed, but the advancement in your life from a happiness standpoint is incredible. Money isn’t everything, so when you look back on this past year, your savings will have been important, but it is the life lessons you’ve learned and discovered that have the real value.

    Been an absolute pleasure to watch along.

  40. I’m always inspired to save more each month when I see what you have been able to put away!

    As a recommendation, I think it would be nice to include a bar graph that tracks the savings percentage in the same way that you having been tracking your dividend income each month. IMHO it would be a cleaner way to show the information.

  41. Seraph,

    I agree. It was really a successful month when looked through the lens of no traditional job and also the move across the country and all that. I’m really happy that I’m able to save as much as I do right now, considering I’m generating all of this on my own. I set this goal up at the beginning of the year when I was still making quite a bit more money. I kind of had the idea in the back of my head, but if I knew I was definitely going to quit the job and just write as early in the year as I did I probably would have set the bar even lower. But it’s still a great goal to shoot for. 🙂

    That’s a good suggestion there about putting together a list of things like that. I think the list would be relevant whether or not I publicly list my expenses, simply because frugality has now become a comfortable lifestyle for me. But I’m sure if I really thought about it there are still some things I’d splurge on a bit more if I wasn’t public about it. I’ll try and put something together at some point!

    Cheers.

  42. Robert,

    I think that’s probably something you won’t find a consensus on. I count my dividend income as income because it’s taxed as such and it’s freely available to me at any time. I could quite literally live off of it tomorrow if I chose to. So that’s income in my eyes.

    Dividend income in retirement accounts is obviously a bit more complicated than that. That being said, I’d still count it as income. If you really had to, you could access it (SEPP, etc.). Thus, it’s not like it’s not income at all. It is income. You’re just deferring access to it. So it’s not like your savings rate spikes through the roof the second you turn 59.5 or whatever. The savings rate was there all along, and so was the money.

    Just my $0.02. But some will disagree.

    Cheers!

  43. gayman,

    Thanks!

    I’m not quite sure what your question is, but I did explain how I generate online income a few months ago. You can find the link near the top of the post where I go over my income.

    I hope that helps. 🙂

    Take care.

  44. DV,

    Great point there. I totally agree with you. As I stated in the post, I’m disappointed only in respect to the number being lower than what I’m used to. Perhaps it’s a “new normal” for me, which I’m not unhappy with seeing as how I’ve already largely achieved what I set out for almost five years ago: more time. That being said, I’m still chasing after financial independence with the same enthusiasm as before because I want true freedom, and that will require a savings rate at 50% or higher to still attain that freedom around 40.

    Appreciate the support very much. Every month is a step in the right direction. And I’m definitely excited by all the volatility in the market lately. For me, volatility is a synonym for opportunity. 🙂

    I hope all is well over on your side!

    Best regards.

  45. ERG,

    That is funny how your perspective can change over time. Six years ago I would have LOVED a 40% savings rate. Now, it’s like, “I’ve done better.”. Haha.

    Honestly, I’m only disappointed in it because I’ve climbed higher mountains. But with the way my lifestyle is now the necessity to climb such heights has been diminished somewhat. However, that doesn’t eliminate the desire. Just because a runner has already won a marathon doesn’t mean they don’t want to keep winning marathons. As such, I’m still just as hungry as ever to attain my eventual goal of financial independence. I may have “won” more time now, but I still haven’t “won” my complete freedom. I’m still climbing. 🙂

    Thanks for stopping by!

    Cheers.

  46. Mrs. FW,

    Ahh, moving. I LOVE owning pretty much what just fits inside of my Corolla. In fact, I could also take a passenger as well and still fit everything inside. Anything I own that doesn’t fit, like my couch (our couch, really), is so cheap and replaceable that it doesn’t even matter. Minimalism is beautiful. 🙂

    I agree 100% with you on eating together. I had to make some sacrifices before to get to where I’m at, and my schedule was really crazy there for a couple of years. But it led to where we’re at now, so it was completely worth it. I definitely don’t enjoy cooking, but I don’t mind being Claudia’s helper. I provide laughter and conversation while she does most of the heavy lifting. Of course, most of our meals are quick and easy (mostly stir fry).

    Thanks for dropping in!

    Best regards.

  47. W2R,

    Thanks for the wonderful comment there.

    I agree completely. The real value in all of this is the lessons on happiness and life I learned along the way. Money is just a tool, and I simply aim to use it to garner more time/happiness. So the high savings rate is just a means toward an end. But along the way I gained a lot more value than what looking at just numbers might show. This might be my lowest annual savings rate over the last five years, but it’s been by far the best year in terms of happiness, life, love, education, and time.

    Thanks for sharing your thoughts. Really appreciate that. Glad you see past the numbers. 🙂

    Cheers!

  48. Dan,

    Well, this month was almost to the penny the same as last month. But it’s definitely taken quite a jump from where it was just six months ago. And I hope to keep that ball rolling. 🙂

    Hope you had a great September as well!

    Best regards.

  49. Carl,

    Thanks for the suggestion there. Maybe I’ll change that for next month and going forward. I could easily just add a bar graph which would show the savings rate visually across the year. Stop by next month and check it out. 🙂

    Take care!

  50. The numbers look good given the massive improvement in your quality of life. 40% is still quite awesome. You are absolutely right that leaving paid employment was one of the most positive decisions you’ve made your whole life.

    I’m glad you guys are taking the time to have dinner together. You are reaping the rewards of breaking away from that awful dealership, you can now have a less hectic life and share more time with those you love.

    At this point I don’t think you need to rush to achieve full FI. I think things will continue to improve organically and you will still achieve FI before you’re 40.

  51. Great job! Your saving rate is awesome. It’s nice to hear you’re finding your groove. Good to be back in Florida too, I bet.

  52. Spoonman,

    Thanks so much. I’m sure you and Spoongirl are also experiencing some of the benefits of more time together. Though, your situation is even better than ours as you are both walking that path together right now. Claudia, on the other hand, is still working.

    I hear you on the rush. I’m not changing the timeline, but the path there has become a lot more enjoyable and relaxed now. Every day just keeps getting better. 🙂

    Thanks for dropping by. I hope you guys are really enjoying it so far!

    Best wishes.

  53. Joe,

    Definitely finding the groove now. Though, I don’t have to contend with a little one like you do. I can imagine that’s a bit more challenging and also rewarding than my own experience. 🙂

    You guys are doing great over there as well. You’re saving a ton of capital, which is just awesome. I’m definitely giving this my all, so we’ll see where I stand in another year or so.

    Best regards!

  54. Your saving rate is pretty awesome, considering the big road trip to Florida I think you did very well managing your expenses for September. Great to hear that you’ll be eating dinner together as a household. This allows all of you to spend quality time together over the dinner and talk about your day. Sending quality time together as a family is very important.

  55. DM,

    I am pumped as heck for you. That’s a huge savings amount, as well as Increase in quality of living aka, you have a great balance. Sounds like your diet is about to be awesome by the way, fajitas are where it’s at. You can probably creep towards the 50% amount with November/December maybe, but either which way – you are living the life that you ultimately want, and that’s all that matters. You are earning income for what you love, have a passive dividend stream from being an owner, living with the woman you love and in great weather to boot. Damn, why am I still in Cleveland again? Smh… joking, but congrats and hope you have a great weekend DM!

    -Lanny

  56. Tawcan,

    Thanks for the support. It’s definitely a nice balance now. Getting to spend more time together is what this is all about. 🙂

    I hope you have a great weekend over there!!

    Best regards.

  57. Henry,

    It’s been a long journey to get to this point, but every second was worth it. I’m really blessed to be able to do what I love for a living right now. Every day is a gift. 🙂

    Appreciate the support. You’re doing great over there as well. BTW, I just wrote an article about TJX today (one of your larger positions), and the growth is impressive. I might have to initiate a position at some point. There’s only a couple of retailers I’d be interested in outside of TGT and WMT (I already own those two) and TJX is one of them. I’m really impressed with their numbers. Great investment there, as you already know!

    Cheers.

  58. Lanny,

    Thanks so much, man. You had a great month as well. I know you came a little short of your really lofty 60% goal, but you still killed it. I would be really happy with 57% every month. 🙂

    Appreciate the kind words. It’s truly wonderful to be doing this all day long now. I almost can’t believe I’m writing full-time!

    If you ever decide to head south I’ll definitely show you around. 🙂

    Best wishes.

  59. ILG,

    Thanks! I really appreciate the kind words. I’m doing my best to produce great content on a regular basis. I hope everyone continues to enjoy it. 🙂

    I hope you have a great weekend!

    Best wishes.

  60. Solid month and good progress, keep it up 🙂

    I would be very happy with $150 petrol bills. Here petrol is $9 per gallon lol

  61. yezz,

    Ouch! That’s painful. I’d probably get rid of my car if gas were that high. Or I would drive much, much less than I do now (which isn’t much).

    Thanks for the support. It’s another step in the right direction, that’s for sure. 🙂

    I hope all is well where you’re at, other than those gas prices.

    Cheers!

  62. I live in DC area. I am mid-late career. Rent is $3295 for 4 bedroom house close in, just over DC line in MD. This is also considered a good deal for this area. I invest roughly 50 percent of net pay, especially if you consider reinvested dividends. My wife and I are frugal. Rent and utilities are probably 80 percent of total expenses. It sucks that DC is so expensive. I can’t wait to retire to nicer and much cheaper area. dd

  63. DD,

    It’s fantastic that you can leverage the high income right now by saving/investing the majority of it. The effects of frugality, even in a high-COL area, are powerful. Great job over there. 🙂

    Building that passive income stream now gives you guys a lot of flexibility down the road. You can commit a sort of arbitrage by living in D.C. right now and use your high income to build sizable assets, which would allow you to use that passive income down the road in a cheaper area. Keep up the great work!

    Cheers.

  64. Thanks DM. The only problem is I’m already 48. Career has been pretty exciting/rewarding but I’m ready for freedom. Can qualify for pension in addition to DI at 50.

  65. An excellent savings rate for someone not in a conventional job – well done!

    Like you, I’m going to fall short of my own 50% savings rate average with only 3 months to go, am currently at just under 44%. However, I take some consolation in that I only started saving in April, missed out on 3 months which may have helped me get to 50% (or not!). Anyway, I hope to do it in 2015!

  66. weenie,

    Thanks so much! Not my usual lofty standards, but a success nonetheless. 🙂

    44% is still a fantastic savings rate, especially with getting a late start. We may set up 50% as an arbitrary goal, and something to shoot for that aligns well with our financial goals. However, 44% is like shooting for the stars and ending up on the moon. You still ended up pretty far, and much further than most. Keep it up!

    Cheers.

  67. Hello DividendMantra,

    I am a new reader of your blog, it is great! You really have a talent for writing 😉

    I have a question. The answer could be somewhere in your blog site, but there is so much information already, I cannot find it yet. I was wondering what is the average amount of money every month you put in new money in your stocks account? I was wondering how much the capital in growing by adding funds.

    Keep up the great work!

    Regards,
    Huang

  68. Hi,

    I don’t save at all so I’m starting with a goal of 5%. I’m recently divorced with 2 kids and now, more than ever, realize the importance of at least an emergency fund. Your blog inspires me as I just found it about a month ago and have read all the posts. So, I guess I’m part of the overwhelming majority of ppl who don’t save. Not because I don’t want to, just haven’t made it a priority. Most of the commenters are also doing a wonderful job of saving. You all inspire me. I actually majored in Finance in school and knew the importance of saving 50% but married someone who was far from being on the same page. I think I adapted for the sake of minimizing disagreements. What a mistake! My new life starts now… with 5% but I expect that number to be consistently 10-15% by the end of 2015.

    Thanks for the inspiration! Bonnie

  69. Huang,

    Thank you very much for stopping by and offering up the support. Really appreciated. I take a lot of pride in my work, and I do my best to create unique content that’s easy to read and inspirational. Thank you. 🙂

    I tend to invest a little north of $2,000 per month, over my long-term average. Some months I was able to invest as much as $4,000, but when I first started out it was hard to come up with more than $1,200 or so. My recent career change has led to a drop in income, so I’m now back down to that $2k/month figure.

    I hope that helps!

    Best wishes.

  70. Bonnie,

    Thanks for stopping by and sharing! That takes courage. 🙂

    It sounds like you had a partner there that maybe wasn’t particularly supportive of some of your ideas and efforts, but the good news is that you’re starting. And that’s really half the battle.

    5% is better than 0%, and 10-15% is even better than 5%. It takes time to get into your groove, but once you see the results you’ll want more. Success begets success, and saving prompts more saving. At least, that’s how I’ve found it to be.

    In the end, you’ll have to formulate goals that work for you and your situation. We’re all different, and our means, dreams, and abilities are all different.

    I wish you the best of luck. And I do hope you stick around. 🙂

    Cheers!

  71. jason, do you re-invest your div. through automatic re-investment and buy more shares or do you get div. in cash and wait for a good time to invest in a stock? enjoy your writings and opinions.

  72. jason, thanks for your reply reguarding div. re-investing. i look forward to your next blog and investing methods.–b.j

  73. Steve,

    Yes, this is net income. Although, I’m probably a bit short on taxes this year as I set up my quarterly estimated payments before I was making as much online. That’ll sort itself out based on whatever I owe next year.

    Cheers!

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