Income/Expenses For February 2015

writingsavingI’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 potential income to save, but spending less means you need less passive income 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 February 2015:
Online Income$2,959
Dividend Income$379
Total Income$3,336
Expenses From February 2015:
Rent & Utilities $534
Student Loans$224
Engagement Ring$200
Health Insurance$193
Groceries$188
Restaurants$103
Gifts$74
Auto Insurance$65
Fast Food/Takeout$63
Pharmacy$38
Cable/Internet$27
Mobile Phone$25
Fuel$22
Amusement$9
Everything Else*$28
Total Expenses$1,787

Income

This was my lowest month for online net income in some time, but it’s still fantastic, in my view. Earning a pretty modest living while pursuing my passion for writing and inspiring is just a dream come true. Truly. If you’re looking to know how I earn an income online, I shared that last year. Other than increased freelance writing, it’s still accurate and relevant today. I’m deducting quite a bit more for quarterly estimated taxes this year, so that’s constraining net online income. But this is still more than enough for me to get by on, save, and also achieve my goal of $36,000 in net online income this year. Thank you all for your continued support!

Dividend income was of course once again wonderful. Whereas online income is something that requires constant input on my part, the dividends just roll in regardless. If I decide to sleep in until noon and watch movies all day I still collect my dividend income. Gotta love that. What’s even better is that between all the companies that sent me dividends and all the individual sources of online income, I received income from 18 different sources this month. Better than one single paycheck, that’s for sure.

Expenses

*The Everything Else category includes expenses I don’t have a regular budget for. I spent the $28 on an oil change for my Toyota Corolla. I learned that the tires are dry rotting and need to be replaced soon. In addition, my insurance needs to be renewed. Combined, these would cost me more than $1,000. But why would I spend all that money on a convenience I don’t really need? Freeing myself from the car and its associated expenses will give me freedom to spend less and enjoy life more. So I’ll not only save $1,000, but I’ll also collect the cash that’s locked up in a metal box that sits in a parking space. Double score!

There’s really not much else to report on or explain this month. This is really kind of a baseline month for me. The $200 amortization of the engagement ring will be over in a couple of months, so that’ll drop the baseline even further. But personal expenses in the mid-$1,500-per-month range is a good long-term target for me. And there’s the aforementioned dropping of the car, which will likely reduce my monthly outlay even more.

However, one area of spending I may actually increase in the near term is food. I spend a lot of time at home right now. Don’t get me wrong, it’s wonderful to wake up when I want, stroll over to the kitchen to get breakfast, and then sit down and start working in the comfort of my own living room. However, it’s also nice to get out, enjoy the beautiful Florida sunshine, and be a part of society at times (even with all of society’s drawbacks). I may be a hardcore introvert, but staying home 99% of the time gets old. And I find myself opening up more and actually looking forward to being more social. So I may start writing from mobile locations more and more, which will require the token purchase of food/coffee to use a facility’s Wi-Fi if/when I’m not going to the library.

The blog cost me $0 this month. I was experiencing some hosting issues for the last few months and I received a credit for my troubles. I also had a credit on file for my emailing service, so what you see is all personal expenses this month.

Savings

I managed to save 46.4% of my net income this month. That’s really a great result for me. Expenses were mostly kept in check and income across the board was pretty strong. A slight uptick in dividend income and perhaps just a little more online income would get me over 50%, which is what I’m always aiming for. But 46% is still quite wonderful. I’ll gladly take it.

One of my goals is to save 50% of my net income throughout 2015, averaged monthly. So far, I’ve hit rates of:

[show-rjqc id=”25″]

So I’m at an average of 43.7% for the year thus far. That’s obviously below my goal, but I knew 50% was going to be a tough stretch for me. This month was really a good gauge for my potential right now, which means the climb up to 50% might be beyond my reach. However, I do have some tailwinds working in my favor including the sale of my car (which will provide temporary income and a permanent reduction of expenses) and the potential for more dividend income over the second half of the year. Nevertheless, saving 44% of my net income while really living my dream is just incredible. I’d rather save 20% of my net income and love every single day than save 80% and be miserable. That’s just my take on it. I’m still going to give the 50% goal my all, but missing it won’t really negatively impact my life in any meaningful way.

The next couple of months are going to be particularly tough for the budget. I know March will be absolutely brutal. I’ve already got my taxes just about all finished and it looks like I’m going to owe about $4,500 or so in taxes (due to chronic underpayment last year for estimated taxes on online income). That counts federal and, much to my chagrin, state income taxes. I spent a few months living in Michigan last summer and I owe $500 for the privilege. Reminds me why I don’t live in a state with income taxes! April and May will also be expensive with a wedding and a trip to Omaha to attend the Berkshire Hathaway annual meeting for shareholders. A lot of fun stuff, but fun stuff sometimes costs money. However, I think the summer and fall will be particularly strong for savings. Let’s see how it goes!

How was February for you? Save as much as you wanted? On track for your savings this year? 

Thanks for reading.

Photo Credit: bplanet/FreeDigitalPhotos.net

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85 Comments

  1. Another good month for you! February was good for us – we managed to beat our target for savings so I’m happy with that 🙂 with regards to increasing income, would it mean you have to up your hours significantly? Would it be worth it? As you say, you’re doing what you want to do as a job, but if you spent more time on it, would the enjoyment factor lessen?

    I hope March is good to you 🙂

  2. Jason,

    Being a bit below you target is not the end of the world, you come back and achieve you goal.

    February was excellent of us as we received the annual bonus from my company and sold my stock option to have a cash position.

    Cheers,

    RA50

  3. You’re doing well for yourself, Jason. Keep up the good work. Being a Michigan resident, I certainly feel your pain as to the taxes. They still haunt us. Shortly after my wife retired, and as I was getting ready to retire, the state decided that they were going tax pension income, so we have over 4% less money than we thought we would have. A very unwelcome surprise.

    I’m still giving some serious thought to moving. If we move, I’ve got it narrowed down to about 5 states, and Florida is a top contender. No income tax and lower property taxes…. and much less snow. What’s not to like?

  4. Nicola,

    Congrats on the great February over there. That’s fantastic. Always feels good to beat those savings targets. 🙂

    As far as online income goes, I’m about maxed out in terms of content production. So anything that increases my income there will have to be passive in nature that’s designed to maximize the platforms already in place. I see some potential there, but as I mentioned, I’d be quite pleased with just maintaining this approximate level. I’m not actively looking to spend any more time than I already do on all of this. I’ve got a fantastic work-life balance right now, especially since the work isn’t really work anymore. Not looking to ruin that.

    Appreciate the support. Let’s keep rocking it!

    Best wishes.

  5. RA50,

    Awesome news over there! Great news there with the annual bonus. Can’t remember the last time I ever heard anyone complain about more money. 🙂

    Thanks for dropping by. Keep it up!

    Take care.

  6. Steve,

    I hear you all the way. The state income tax up there was one of the considerations behind the move to Florida. At the time, Florida offered so much more (and still really does). The great weather, beaches, low COL, better access to public transportation, and lack of state income tax are all appealing qualities. In terms of seeking FI and later enjoying it, Florida’s a great pick.

    That said, I’ve become somewhat bummed out over time due to the fact that I live in an area with a mostly older population. Of course, that also makes me feel young. 🙂

    But we’re in a different demographic, meaning you’d fit right in in most cities up down the coast. But now that you’re not working anymore, there’s no reason you couldn’t at least spend winters down here. Something to definitely consider!

    Cheers.

  7. Hi Jason,

    I wouldn’t worry too much not achieving 50% savings rate for the month. Like you said, you are enjoying life and that’s the most important thing. Very exciting stuff with the wedding and Berkshire shareholders meeting. Hope you enjoy the rest of your spring break!

  8. Great work Jason. I wouldn’t say your savings rate matters nearly as much today, as your flexibility. I think I would be thrilled to be cash flow positive and able to save. You got the snowball rolling…..and it is just going to pick up speed over time. Hope you’re “Spring Break” went well
    -Bryan

  9. Another very solid month for you Jason. Hitting higher than 45% is very good for anyone. I’m sure you’ll hit your goal of 50% or more moving forward. Is there a way to increase your income somehow by picking up some side gigs?

  10. Sampo,

    Indeed. The whole journey is really about maximizing happiness, not a savings rate or investment account. It just so happens the latter are often necessary to attain the former, which is why we’re all here. 🙂

    Appreciate all the support. The best times are still yet ahead!

    Best regards.

  11. Bryan,

    You’re absolutely right. Flexibility, freedom, and the overall enjoyment of life are far more important than a savings rate, and I’ll always prefer flexibility over savings…which is why I made the move away from the auto industry. I’m honestly happier than I’ve been. I’m blessed. 🙂

    The weather has been absolutely stunning. How can we not enjoy life right now. Went to a play yesterday and a baseball game earlier in the week. Life is good in SW Florida right now, my friend.

    Hope all is well up in your neck of the woods as well.

    Cheers!

  12. Hi DM,

    Seems like you had a solid month. Owing 4500 $ in taxes isn’t fun, but on the other hand it means you did earn a significant amount of money ( which is fun).

    Keep up the good work.

    Cheers,
    G

  13. Tawcan,

    Thanks!

    I wouldn’t have been particularly as happy with 45% back when I was working full-time and striving for every penny, but it’s now a really great reward. Life changes and, if we’re lucky, improves. 🙂

    I don’t plan on taking up any side gigs or anything of the sort. If I can continue to save in this range and live this lifestyle, I’ll be very glad to. This journey isn’t at all about the money for me; it’s about maximizing happiness, freedom, and flexibility. And I’ve fortunately been able to do that. I’m honestly just happy to be in the position to do what I love and still be able to save nearly half my income. I’m blessed!

    Thanks for dropping by!

    Take care.

  14. While the savings rate might not be as high as you’d like right now, I have the feeling you’ll pull through just fine, and have a much higher back half of the year, as your income grows and your expenses drop.

    I can certainly understand the need to get out from time to time. I’m not a social butterfly per se, but I definitely need some human contact in my life which work fulfills in spades. Keep the good work!

  15. Geblin,

    Indeed, I’ve never heard anyone pass up more money because of the taxes they’ll owe on it. As well, I’d rather have a revenue problem than a tax problem. 🙂

    Appreciate the support. Hope you had a great February as well!

    Best wishes.

  16. W2R,

    Yeah, I’m hopeful that’s the case. As it stands, I think the second half of the year is shaping up to be significantly better than the first half. Of course, you never know. Unexpected expenses have a way of being, well, unexpected. 🙂

    I’m also no social butterfly. But I’ve noticed that my desire to go out and be part of society has actually increased over the last year or so. I used to be so drained from work that all I wanted to do was come home and relax. So weekends were definitely a recharging period. Now, I feel a though my battery is kind of at 100% all the time, so there’s a desire to expend a little. It’s definitely an interesting change, and one for the better. I’m still aiming to keep things in check, but I’ve already started to venture over to this deli/coffee house across the street here and there.

    Thanks for all the support. Keep up the great work over on your end as well!

    Best wishes.

  17. So, you are basically writing full time now? Or as full as you want to make it? I am sure the truly passive part will increase as you continue to write.
    Good luck,

    Keep cranking,

    Robert the DividendDreamer

  18. DM,
    It’s nice to see how your personal expenses would look like without the blog expenses. Your savings rate is great, frugality seems to be very natural now without even trying. Are you sure you want to let go of that corolla, you had a great deal on that already, if Im from FL Ill get it for sure 🙂
    Have a great weekend!
    FFF

  19. 46.4% is awesome! Normally I have been around 25% but this month I think im going to be closer to 40%! It definitely is a completely different story to tell when you are doing it in real time.

  20. Robert,

    Right. It’s about as full-time as I’d like to make it. I don’t clock in and out or anything, so I’m unsure as to exactly how many hours I spend on it all. But I’ve attained a pretty attractive work-life balance, especially considering the “work” part of that isn’t really work anymore. But I don’t want to overdo it and turn it into work. 🙂

    Cheers!

  21. DM,

    You are doing very well my friend. I just opened up your post on how you make money online. Eager to jump in and read it as I too aspire to make some money online with all the time and effort I am putting into my blog.

    I think getting out and writing from different mobile locations is a great idea. I absolutely love spending time in coffee shops and drumming up conversations with random people.

    It is so awesome that you are able to write and invest full-time.

    Cheers!

  22. FFF,

    Definitely. This is really what my budget looks like without me trying anymore. I could have spent a little less on food and turned the A/C up higher to save a couple bucks, but there’s no need. Frugality is largely ingrained into my life now, but I’ve attained a very nice balance between spending and quality of life. This is pretty much “perfect” for me. 🙂

    Selling the Corolla wasn’t really designed to save money per se, though that was in the back of my mind. Rather, it’s simply about improving my life, getting rid of what I don’t really need, and spending more time on things that matter. If you can save money and improve your life at the same time, that’s a win-win.

    Thanks for dropping in!

    Best regards.

  23. DY,

    Nice! 40% is a great savings rate. I think once you get into the 50% range, you’re kind of in that “extreme” area. But 40% is very, very solid. You’re almost saving a years’ expenses per year at that point. Keep it up!

    Take care.

  24. sjodom

    Thanks so much! Inspiring others is my aim and exactly why I write and share so much. 🙂

    Appreciate it. Hope you had a great February over there as well.

    Take care.

  25. Gen Y,

    Thanks so much! I’m really blessed. I worked very hard to get to this spot, but I’m really lucky that it turned out so great. 🙂

    I’m with you on being in coffee shops. I used to dislike the idea because working from home is free, and I can do it in my pajamas. But after working from home almost exclusively for the last year or so it’s time to get out a bit. I’ve already been doing that over the last week or so and it’s been nice.

    Appreciate the support!

    Cheers.

  26. You’d fit right in here in L.A. with all the people writing screenplays in coffee shops. You’d probably be one of the few who is actually a professional author though and I’m so happy that you’ve gotten to this point! I just love that thought of you enjoying your day to day freedom more, it’s a very worthy and even needed expense in my opinion. AND You’re killing it with your savings rate, even if it might not feel like it. Congrats on an excellent month, Jason!

  27. Congrats on a great month! 46% saved is fabulous! February was fairly cheap for us as well, though we did get hit with a few annual/semi-annual expenses (like car insurance and our water bill… ). Hope your March is going well thus far :)!

  28. A reader from the old world

    Your savings rate is fantastic

    How many page views do you have in a month ?
    And have you even think about to translate your “Dividend Mantra” blog in Spanish and German or even in Chines to increase your page views.

    Is there an hour or more hours of a day you don not think about dividend investing ?

    An another Question ?

    On the assumption they could close or shut down the stock exchange in New York for ten years.
    And you could only have 10 stocks, which stocks would you hold ?

    Last but not least I hope you will enjoy the Berkshire Hathaway annual shareholders meeting.

    Thanks for your answer in advance

    Met vriendelijke groet,
    Mit freundlichen Grüßen
    Cordially

    George T
    Netherlands

  29. Ryan,

    Haha. Yeah, I guess I would fit in there! I always wondered what all the people were writing about in coffee shops, hunkered over their computers. Now I’m one of those people. Crazy. 🙂

    Appreciate all the support. You’re doing great over there as well. You’re well on your way to a fantastic 2015 and beyond already. Keep it up!

    Best wishes.

  30. Mrs. FW,

    Thanks for dropping by!

    You guys had a great month over there as well, as per usual.

    I was actually facing my semi-annual insurance renewal as well here, which partially prompted the timing on the car sale. One less check to write is always a good thing.

    Thanks for the support!

    Cheers.

  31. Henry,

    The tax situation is my own fault. Just didn’t pay enough last year. But I fixed that this year with a fairly aggressive quarterly schedule. I can’t imagine owing much – or anything – next year.

    Hopefully, you don’t owe as much as me. 🙂

    Take care!

  32. George,

    Thanks for the readership and support. Much appreciated! 🙂

    I do around 300,000 pageviews or so per month right now. I haven’t thought about doing any kind of translation because Google handles that for me. I’ve actually had some Spanish readers tell me the translation service works pretty well.

    That’s a good question about ten stocks. I don’t know if I could narrow it down to ten. JNJ would be one of them. I’d probably pick KO or PEP as well. A railroad would be in there as well. I could see a high-quality consumer products company like PG or UL being in there. I’d also include V and DIS. EMR or ITW would fit as well. And then an insurer like AFL, TRV, or CB.

    Hope all is well in the Netherlands!

    Best regards.

  33. I feel your pain. I once had to spend $500 on my car although I had it for 4-5 years at that point without any issues and then stuff like my timing belt, etc. had to be replaced. Sometimes that stuff happens. As for the social issue, have you thought about volunteering a few hours a week? Or maybe you could try new hobbies? What is something that you’ve wanted to try but never have? Maybe this can help. http://freeintenyears.com/frugal-tips/100-cheap-hobbies/

    If you don’t mind me asking what do you do with your free time when you’re not writing? Anyway congratulations, you’re doing great !

  34. DM,

    You are killing it like usual. No day job and still saving close to half your income is fantastic. I also like your idea about getting out a bit more. I am pretty introverted as well, but I love being places where people and activities are going on. The local parks can provide a great atmosphere as well.

    Also don’t forget about what I mentioned regarding the sale of your car. The peak of tax season is here and a lot of people have money burning a hole in their pockets, but the money doesn’t last long. Strike while the iron is hot.

    MDP

  35. Lila,

    I know all too well how expensive cars can be. I used to routinely manage repair orders well over $2,000 on older cars. I always told myself that I’d never be in that situation. So far, so good. 🙂

    That’s a good idea there about volunteering. I don’t really have time for it right now due to being pretty busy with writing and what not, but hopefully in the next decade or so that’s something I can add to the plate. I plan to keep writing somewhat even in financial independence, but probably less frequently than I write now. That might free up some time for me. Of course, it’s difficult to say exactly what I may or may not enjoy going 10 or 20 years down the road. I may want to travel or do something else that might consume more free time. But volunteering/philanthropy is definitely on my mind.

    As far as what I do when I’m not writing, I’m generally doing some combination of reading, exercising, watching movies, relaxing by the beach, or perhaps playing a video game. Reading and exercising takes up a significant portion of my free time, which is exactly how I like it. 🙂

    What do you do in your free time?

    Cheers!

  36. MDP,

    I used to look forward to coming/staying home after a long week of work. I would be completely exhausted and needed to recharge the batteries. Now my batteries are always at 100%, so I’m looking forward to expending some of that energy. 🙂

    The Corolla actually already sold. I didn’t take as much as I could have took, but I got enough for it. And it was nice to avoid the $1,000 I would have had to pay to keep it. It was also really interesting in that the couple who bought it from me are interested in financial independence and traveling, which is how they ended up looking for a used Corolla. Never know who you’ll meet out there.

    Thanks for dropping by!

    Best regards.

  37. Yea I pretty much like to do the same things, can’t go to the beach since I’m in Omaha so you’re very lucky. A lot of the stuff I do is very low cost like go to parks, go to museums, hang out with my friends and bf. I also like playing video games. I played Guild Wars and Gears of War with my bf, and I like playing Skyrim, Fallout 3, Fallout New Vegas and old school Mario Kart and Dr. Mario (I feel old now). lol.

  38. Jason,

    Big fan of your blog. Been reading for a few weeks and it has helped me change my mindset with investments. Now i am tracking my dividend payments and looking forward for more growth.

    Thank you

    javier

  39. Javier,

    Appreciate the readership. And I’m really glad that your mind has been opened and you’re tracking your dividends against expenses. I hope the dividend income continues to grow for you. 🙂

    Cheers!

  40. DM, I’m not sure what’s more impressive.. your online income or extremely low expenses. Great job all around, and March should be fund with the bump in dividends received.

    I would look at the expense of a drink/snack/whatever while working out and about as a luxury to your situation and something to have fun with rather than let it eat away at how you feel it affects your budget. In your shoes I’d be doing the exact same thing, slowly removing myself from the home and doing more work in public wi-fi places. I’d call it the cost of happiness and enjoy every bit of it.

    Best,
    DWC

  41. DWC,

    Thanks! I feel better than ever about the budget. I’m really on cruise control right now, with the expenses mostly falling in line and the dividend income slowly rising.

    I agree 100% on what you’re saying there in regards to working outside the house. I kind of questioned the cost/value of it at first, but after a couple of times I felt fine about it. And any additional costs there due to working in public should be offset by the savings from the car. Either way, I’m okay with it. I enjoy it and I find myself even more productive when I’m out of the house, which is hard to imagine since I’m pretty productive when I’m here at home.

    Thanks for stopping by. Appreciate it!

    Best wishes.

  42. Your blog inspired me to track everything very similar to what you do. My current job requires me to track and analyze sales data every day so I had no problem setting up my own personal net worth tracker. It is setup with weekly data points and it is a beast of a spreadsheet with different tabs for tracking investments and dividends. I created it at the end of December to really get a handle on all of my finances and to make sure I am able patch up any leaks that could hinder my savings while also tracking portfolio growth. Two in a half months in I am beating my budgeted goals. Only 32.6% of my current income is fixed for rent, food, phone, and car related expenses. Savings as a % of monthly income is at 52.4% and an additional 15% is directed towards an entertainment fund which often only has half of the funds spent and the majority of that is on fast food or other dining.

    Budget monthly
    food 9.4%
    rent 11.3%
    phone 2.5%
    gas/parking 5.6%
    car insurance 3.8%
    fixed expenses 32.6%

    Entertainment 15.0%

    401k 12.4%
    emergency/house deposit 7.5%
    brokerage 32.5%
    Savings 52.4%

    Oh and my Total Net Worth has risen 20% YTD. I am basically on par with the 2011 part of your journey. Now I just need those Dividends to start growing. I’ve got a goal of a $1,000 this year and if ARCP reinstates an annual .70 dividend that would put my stock portfolio on track for about $700 without any further investments this year.

  43. Congrats on the strong savings rate! 45% is pretty darn good considering that you’re living life on your own terms, now! X years of doing what you enjoy is a heck of a lot better than (X-1) years of doing what bores you to tears!

  44. Again, another great month! Your saving a huge proportion of your income, much more than the average Joe. Even with the lower February income, it’s still a wonderful result. Keep going!

    Cheers

  45. That’s still a great month of online income even after accounting for higher taxes. Congrats! That’s pretty amazing how you’ve been able to essentially reach a modified FI after such a short time. Especially since you can still cover all your expenses and still save money to invest. That 46% savings rate is awesome. Keep up the great work and I love the story you have to tell. I think it really resonates with a lot of people.

  46. Jason

    I had a similar situation last year. I had a squirrel eat the wiring off the fuse block all the way to the firewall on my 20 year old Toyota truck that had 80k miles. I walk or ride my bike to work, reason for low mikes on my truck. I salvaged the truck, the wire harness cost much more than the truck was worth. I now live without a personal vehicle and the family gets by with one car. Loosing the convenience has not been a problem, we just need to plan our transportation needs. Saving on insurance has been great, just buying more dividend paying stock! The interesting thing is people think I am weird, but they don’t know I am financially independent. Meaning I go to work by choice where my savings rate is 100%. Cars are the ball and chain of the middle class.

  47. I know everyone is marveling at your low expenses and growing dividend income, but as an up and coming blogger, your online income is what really gets me excited. I just started my own anonymous blog (not related to investing) and so far it’s made only a couple bucks since the end of 2014. I know that not all of your online income is from blogging, but I imagine that you still make a sizable chunk at least from this blog and my goal is to do the same, using the income from my blog and my day job to help fund my dividend growth adventure.

    So forgive me if I deviate from all the talk about frugality for a minute to ask you: Do you use any keyword research tools to find keywords before writing a post? Do you utilize SEO at all? Or do you just go in blindly like I was doing when I first started? Do you use any statistical tools to keep up with your blog’s rankings (such as Google Analytics or Google Webmaster Tools), and do you pay attention at all to your blog’s PageRank, Alexa ratings, etc? How long were you blogging before you started to see any real money?

    Oh, this isn’t actually my first time commenting. But since my blog is an anonymous blog and the name I was using here was something that people know me by, I figured I’d post under this one.

    Sincerely,

    ARB–Angry Retail Banker

  48. TDM,

    That’s a fantastic savings rate over there. Congratulations!

    It’s imperative to track every penny consistently if you want to succeed at achieving early financial independence, in my view. After all, you can’t know what can be improved if you don’t know where all the money is going.

    Keep up the great work. You’re on a great trajectory with a 50%+ saving rate.

    Best regards.

  49. Charles,

    Thanks so much!

    I’m honestly just grateful to be cash flowing enough to still save and invest at a pretty aggressive rate. Hopefully, I can get the rate back above 50% toward the latter part of the year, but I’ll take what I can get along the way. 🙂

    Thanks for dropping by.

    Cheers.

  50. M,

    Appreciate it! I’m still giving it 100% every month. It’s not a bad start considering this is my first year without a full-time job to fall back on, but we’ll see how it goes. 🙂

    Take care!

  51. JC,

    A “modified FI” is a good description. I’m really fortunate. If you look at it that way, then I went from below broke to modified FI in four years. The benefits of being aggressive, working hard, staying persistent, and believing in yourself. 🙂

    Appreciate all the support. Hope all remains well with you and the family over there!

    Best wishes.

  52. Brad,

    The ball and chain of the middle class, indeed. They’re a massive expense. I don’t know if people really add up all the money they’re spending on their transportation. Even just spending $300/month on transportation – that would probably be on the light end – would require over $100,000 to sustain at a 3.5% yield. Imagine having to save $100k less. That totally changes your trajectory. Your whole life changes.

    But we get around fine without a car. It can be a little more difficult to access certain parts of town and what not because Sarasota doesn’t run their buses all over or very late at night, but we make do just fine. The key is being open minded to it and adjusting your lifestyle accordingly.

    Enjoy the additional savings! 🙂

    Best regards.

  53. ARB,

    Those are good questions. I can only tell you that I’m a poor example when it comes to making money from blogging. The majority of my online income still comes from freelance writing, though the blog is earning some decent money as well. But I don’t utilize SEO, analytics, or really any of that stuff. I don’t have any interest at all in any of that, so I don’t bother with it. I just write articles, keep in touch with everyone, and go about my day. I’m confident that I could improve the blog’s rankings/income if I were more diligent there, but it’s just not an interest of mine.

    As far as when the blog started earning money, it took quite a while for me. You can go back and view any of my income reports for that information, but I don’t think the blog started earning anything notable until late 2013 – almost three years after starting.

    I hope that helps!

    Best regards.

  54. Personally, I think you have an excellent means to increase your income, broaden your exposure and involve your wife, by having this site in English & Spanish. If you were to simply use the same content as this site, but have your wife translate and type the questions & answers in Spanish, you would broaden your scope into Mexico & Latin American countries, as well as Spanish speaking Americans. She would feel more involved with your work, you would attract new advertisers catering to that market, with the bottom line growing. It certainly works for many people in Canada who have their sites in English & French formats. Just a thought.

  55. DGJ,

    Thank you. I’m definitely giving it my all over here, which is producing results that I’m really happy with. Life is good. 🙂

    Thanks for dropping by!

    Take care.

  56. Hi Jason,

    I came across this video by hedge fund manager Bill Achman. It is worth checking out or highlighting it in your weekend reading post.

    Everything you need to know about finance and investing in under an hour.

    http://youtu.be/WEDIj9JBTC8

    Thanks,
    Frank

  57. Brian,

    Hmm, that’s a really interesting thought. It was actually through one of Claudia’s friends that I found out about the Google Translate function working so well. A few of Claudia’s friends stop by the blog from time to time and read and apparently the Translate function works really for them. They can read all the articles and comments just fine. I may look into it, but I’m not sure the time spent would really be worth it as Claudia would have to take a good chunk of time out of her schedule to do something like that and, as it stands, the bulk of my online income isn’t actually related to the blog…in English.

    Cheers!

  58. DM-

    Always enjoy reading your blog posts, great to hear you’re able to ditch the car and make it work. I wasn’t as fortunate but last year, down sized form having a newer diesel truck to a 2006 Toyota corolla netting 20k to my pocket and saving tons of money on fuel and registration costs. In California the public transportation isn’t too good unless you’re in a few select cities.

    A while back I posted that you have motivated me to take a look and see how my income and expenses were doing. After a bunch of working back tracking a year worth of credit card statements and bank records. I managed to save 37% of my income and I am definitely not a frivolous spender. So with that I have to tip my hat to you my friend that savings rate your able to achieve is unbelievable, and in doing that little exercise as forced me to take a better look at just where my money is going and I have some good ideas where I can make some worthwhile cuts in 2015!

    Thanks!
    Nick

  59. Hey Jason,

    Are all of the dollars saved invested in the market eventually or do you keep any of it as cash. So…. basically, if you save $2500, then about 2.5k in stock purchases + dividend reinvestment per month?

    Keep cranking,

    Robert the DividendDreamer

  60. Nick,

    Hey, that’s awesome! Nice move there. My car was a 2006 Corolla, too. Fantastic, reliable, and cheap car. Can’t go wrong. 🙂

    A savings rate of 37% isn’t bad at all, especially if you haven’t been actively and aggressively tracking it and aiming to save as much as possible. I’m sure with a few tweaks that you can make the changes necessary to put that over 50%. And then you’ll be well on your way.

    Keep it up!

    Best regards.

  61. Robert,

    Right. Any cash that doesn’t get spent gets invested. I generally keep emergency cash on hand that averages a few grand or so, but everything else gets invested.

    Thanks for dropping by!

    Cheers.

  62. I am trying to do that myself, but with the kids and all the extracurricular activities, the divs are reinvested and the IRA’S are funded. Beyond that, it would be a stretch to add any more to the pot. Glad I started early.

    Good job on your savings. Keep it up.

    Keep cranking,

    Robert the DividendDreamer

  63. DM,

    Great month. I can’t wait to see your savings rate in March and so on now that you have sold your car. I am very, very jealous. One awesome thing about your month is that you were able to increase you savings rate in a month that produced lower than usual levels of online income. Great feat that is a sign of great things to come when your online income picks up again.

    Even though you were short of your goal this month, I have a hunch with increased online income, March’s insane dividend month, and reduced automobile expenses, you should hit it in March. I am looking forward to April so I can read your summary.

    Keep up the great work.

    Bert

  64. Great post Mr. Mantra.
    You’re pretty much made it to financial freedom already bud. That’s wonderful. You’re still making a great income with writing and blogging which you’re passionate about. You seem very happy these days Jason. I’m happy for you. Every week, it’s always the same circle of people that visits and share ideas but it’s wonderful that we’re all trying to better our lives and helping one another with support and ideas. It’s a great community.
    I say slow and steady wins the race and here’s to us Dividend Growth Investors!
    Take care my friend.

  65. Hey mate, well done. apologies if you have answered this already but how do keep track of income and expenses, excel, an app…?

    Cheers

    Geoff

  66. Jason,

    Another solid month! Even though you didn’t hit the 50% mark, you’re still doing much better than many had anticipated. Enjoy your pseudo financial freedom, you’ve earned it.

    Best wishes,
    NMW

  67. Bert,

    I wish I could be so optimistic about March, but unfortunately due to the aforementioned taxes I’ll have to pay my net income will be reduced accordingly. It looks like I’ll at least have a positive savings rate for March, but it won’t be much. April and May will also be somewhat low, but I think the rest of the year should be really solid for the savings. I’m looking forward to it! 🙂

    Thanks for dropping by. Keep up the great work over there. You guys are off to a fantastic start this year.

    Cheers!

  68. DH,

    It’s all thanks to the community. I’m really blessed to have so much support, and I certainly do my best to give back. But I am really happy. It’s hard not to be happy when you’re living out your dream! 🙂

    Looking forward to seeing the community grow and thrive over time, as many of us eventually reach full financial independence. It’s exciting!

    Thanks for stopping by. Hope you’re having a great weekend over there.

    Best regards.

  69. NMW,

    Thanks so much. It’s still a battle every month to save, since the reduced income has really constrained my ability to knock it out of the park. But the pseudo financial freedom is well worth all of it. 🙂

    Keep up the great work over there with the massive savings rate!

    Best wishes.

  70. Oh shoot. I forgot about the tax man. Always has to have his hands in the cookie jar. Are you planning on amortizing that expense as well similar to how you have done so for others?

  71. Bert,

    Yeah, it’s really my own fault. I just didn’t pay enough in quarterly estimated taxes last year. I just delayed the inevitable.

    I’ll most likely just tax the whole tax hit all in one month. I like amortizing large expenses to smooth out the budget, but taxes are a reduction of gross income rather than a traditional expense. I’ll just take suck it up for March and move on. Should get better for savings after May. 🙂

    Cheers!

  72. Great thing for you now is that this DM site is producing 8x your dividends (via ads, etc?) at significantly less volatility than your equity investments!

  73. Vivacious,

    Doesn’t quite work like that. The blog only produces a fraction of my online income, with the majority being related to freelance writing. And the volatility for online income is actually quite a bit higher than dividend income. My dividend income only goes up, while the online income swings quite a bit here and there. And the online income is active income, meaning I have to work for it. The dividend income hits my account either way, like I mentioned in the post. 🙂

    Cheers!

  74. Doing what you like, get paid for it and save almost half the income? Triple yeah!!!!!
    Take care, it is really nice to read your journey.

  75. Nuno,

    Thanks so much!

    You’re right. I’m really fortunate. I’ve worked incredibly hard, but I’ve also been blessed with some luck along the way. A combination of hard work and luck goes a long way. 🙂

    I hope your journey is going just as well over there.

    Best wishes!

  76. Dear Jason,
    First, thank you very much for sharing your knowledge and journey towards financial independence. I found your blog thorough another online source (GoCurryCracker) and do not feel alone anyone in wanting to be financially independent. Most of my friends (some almost retirement age) do not want to be educated in saving for retirement.
    I have a question – about something that I noticed in both blogs: you and Jeremy pay rent. Can you share what your thoughts are on purchasing a house for primary residency (for people who need to get a 30-year loan)? Most of my friends say that it is better than paying rent because you are building equity (I know that at the end of 30 years, you pay much more, but then people say it is advantageous to deduct the interests). Also, in the area where I live my mortgage is far below the average rent. I thought owning your home was an important step towards financial independency (with you being able to pay the mortgage).
    Thank you for responding and sharing your thoughts!

  77. Selena,

    Glad you found the blog! 🙂

    Renting or buying is really a decision that’s pretty unique to one’s circumstances. Furthermore, it’s something you’ll want to perform both a quantitative and qualitative analysis on. The quantitative side is quite easy, as you’re just running the numbers. The qualitative side, however, is something that a lot of people seem to miss or ignore outright. Do you want to cut grass, rake leaves, clean gutters, shovel snow, fix things when they break, and update things as you go? Do you want to be responsible to a structure? Do you want to be relatively fixed to one place? These are questions that people seem to miss until they’re a homeowner and they’re responsible for a lot more than they bargained for. I can tell you that I personally enjoy the freedom and ease of renting.

    As far as the numbers go, I pay my half of the $925 in rent for our two bedroom condo here in Sarasota. You’ll generally want to use the 1% rule when comparing, so a $925 rental would be roughly approximate to a $92,500 house. Doesn’t always work out exact, but it’s a rough idea. The problem is that any home/condo around here that’s $92,500 would either be dilapidated or not near the amenities we currently enjoy (public transportation, within walking distance to almost everything we need). To pay more for less is just silly.

    “I thought owning your home was an important step towards financial independency (with you being able to pay the mortgage)”

    That’s a huge myth and a dangerous assumption. One absolutely doesn’t need to own their own home to attain financial independence and, sometimes, can actually be a huge hindrance. Jeremy can probably fill you in on his nasty ownership experience if you ask him, and you can see how well they’ve done by renting. If you take a look at the rate of appreciation for residential real estate in real terms over the last 100 or so years you’ll see that homes return almost zero. Meanwhile, stocks return somewhere around 7%, depending on the source you use. So I’d rather own the latter and rent the former.

    I may not always rent. But I’d only buy as a lifestyle decision, knowing that it’s probably (depending on the market) a subpar way to spend my money.

    Hope that helps!

    Cheers.

  78. Hello Jason!
    I am very thankful for your time and sincerity in responding to my concern (Jeremy also kindly responded to my question). I appreciate the fact that your message was positive and non-judgemental. Today I went to the library and read an edition from Barrons about dividends (BTW, have you read “MONEY Master the Game: 7 Simple Steps to Financial Freedom” from Tony Robbins? He seems to be a fan of index funds).
    I join the others in saying that your blog is not only educational but inspiring! Thank you for sharing!
    Selena
    PS: I will post some “primitive” questions now and then…

  79. Selana,

    No problem at all. Happy to help. 🙂

    Glad that Jeremy also answered your question. I hope he provided you some insight there.

    I haven’t read Tony’s book yet, but I do plan to at some point. I’ve heard great things about it. 🙂

    Stay in touch!

    Best wishes.

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