Passive Income Update 4-11-19

Disclaimer Been trying my best on bring content to everyone this week unfortunately the ground I’ve made up in writing and posting I have lost in reading so I may be silent these next couple days while I catch up on my reading goal for 2019.

Haven’t updated my passive income in quite awhile so I’ll let you know where I am at now and where I am heading. I finished 2018 off with $830 in passive income for the year which translates to just shy of $70/month. My goal for 2019 is to earn $2500 in passive income which equates to $208/month earned. I’m sure you all know that passive income is critical to reaching financial freedom and I would like my passive income to exceed my active or earned income sometime in the future. If you are unfamiliar refer to this article. Until then we’ll be growing the passive income incrementally and aggressively. I calculate my passive income currently as my dividend income, interest earned through savings accounts, and interest earned through Lending Club. As of today, I have earned $101.25 in dividend/stock interest/savings account interest and $205.90 in Lending Club interest, add that together and we are sitting at $307.15. I’ll be conservative and say we have completed 3.5 months of the year which brings the monthly average to $87.75.

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LC 4.11.19

 

That’s not too shabby and I’ll explain why. It’s obviously not the $208/month I’m shooting for and I wouldn’t expect it to be, most of my passive income will be made up in the fall after I start working full-time this summer. With aggressive savings my emergency fund (also my sacred account) will be paying out 2.1% monthly and any other funds I can spare will go into Stash (for my ETF’s), Robinhood (for my stocks), or Lending Club (for my interest payments). I won’t have to pull any more money from my profits in my various accounts so I can get back to compounding my money.

While it isn’t very exciting now these next few months should become more interesting and passive income should start pouring in. My Lending Club performance peaked in November and has been steadily declining ever since which has hurt the passive income performance significantly. I have also sold off several large dividend payers and one being my go-to monthly dividend stock, Realty Income. Pending market conditions, I’ll pick up more dividend stocks as I see fit and as my income warrants.

As always, I am looking towards the future and pending how everything goes in 2019 and pending if I buy real estate before 2020, I’ll be looking at $500-$750 in monthly passive income for 2020 which is $6,000-$9,000 for the year. Not quite a 10X goal but aggressive, nonetheless.

Thanks for reading along, I’d love to hear what you guys are doing to generate passive income, how many passive income streams you have, and what your goals are! If anyone has a suggestion for a side hustle let me know as well, I’ll be working towards that here soon.

Thanks, B^2

The 40% Rule

As many of you know I am a fan of Grant Cardone with a lot of his stuff and one of the key takeaways I look forward to applying to my life is the 40% rule. The 40% rule was documented in the Great Depression where the wealthy were saving 40% of their income, and its just that simple.  The 40% rule is saving 40% of your income before taxes, so if you make $10,000 a month that would require you to save $4,000 a month. If you start looking at the math you’ll realize after taxes and expenses that it is very difficult to achieve the 40% rule, and it is. Income is a priority for the 40% rule, you can’t save what you don’t make, and you must pay yourself first. I will show you a real example using my actual projected salary for my full-time job starting in June.

For my full-time job I have a $57,600 salary ($4800 monthly), a $5,000 signing bonus paid in first month, and a $500-month stipend for the first 18 months. It is a salary and commission pay plan however I will only account for the salary part since I don’t know how much I will sell yet.

Because I start mid-June, I calculated my gross income as half of my monthly salary ($2,400) + $5,000 bonus + $500 stipend = $7,900

June July August September October November December Total
4800 $7,900 $5,300 $5,300 $5,300 $5,300 $5,300 $5,300 $39,700
save 40% $3,160 $2,120 $2,120 $2,120 $2,120 $2,120 $2,120 $15,880
tax $1,738 $1,166 $1,166 $1,166 $1,166 $1,166 $1,166 $8,734
budget $3,002 $2,014 $2,014 $2,014 $2,014 $2,014 $2,014 $15,086

Looking at the table you can see my budget is around $2,000 and it will be less than that when you consider my 401k will also be pulled out of my income. I did assign a tax rate of 22% which is the bracket you would be in for this income however your marginal tax rate is less than that, either way I prefer to be conservative with my estimates. (I calculated my marginal tax rate to be 11.5% which would add $570 to my budget every month or $570 more to invest every month) For reference, I take data on my spending habits every summer when I am on internship or co-op. This summer I had no living stipend and was completely on my own, my monthly spending came out right at $2,000, though that includes some extraneous cost that most likely will not happen in the first 6-months of my full-time job. I also will be living at home or my girlfriend’s house during the first 6 months of my full-time job as I will be traveling 90% of the time during training.

Realistically looking at the first 6-months I will have extremely low expenses and may be able to save even more aggressively than what I have shown. Any extra income I can save will be put into my other investing accounts (Robinhood, Lending Club, and Stash). Ideally, I would like to save around $20,000 from my full-time job in 2019, which will help me achieve my $75,000 net worth goal. I would also like to try and purchase a 4-plex or duplex at the end of 2019 assuming all goes according to plan.

Looking at 2020, the saving and income numbers look the same as the later half of 2018. Commission will be included assuming I make sales and as my commissions come in, I plan to add those additional funds to my investment accounts as stated above. Looking at 2019 and 2020 I plan to save $40,000 with the 40% rule and invest additional income in my investing accounts. I plan to save in my Discover Savings account which earns 2.10% APY, which will add to my saving goals as well.

2020 will be difficult to keep in budget, I will then be paying rent and will be living full time in St. Louis. The $2,000 I lived on during internship was living like a poor college student for the most part, as I enter the real world, I expect my standard of living from the food I eat to the activities I participate in to be more expensive as well. However, I at least have an idea of what I spend monthly in preparation, I suggest to everyone to start documenting your spending to get an idea of your habits. If you need help or would like to look at how I do it, I cover it in THIS article.

As I mentioned earlier in the article, income is critical to achieving this aggressive saving plan, for your convenience I will run an example with a salary of $40,000, and I will use a marginal tax rate to ensure accuracy. I included above my actual budget above when marginal tax rate is considered ($2570/month).

June July August September October November December Total
$40,000 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $3,333 $23,331
save 40% $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $9,332
tax $283.31 $283.31 $283.31 $283.31 $283.31 $283.31 $283.31 $1,983
budget $1,716 $1,716 $1,716 $1,716 $1,716 $1,716 $1,716 $12,015

As you can see with $850 less a month in your budget that makes things considerably more difficult depending on your life style and where you live.

I hope you learned some valuable information about budgeting and saving money, I’d love to hear about how you save and what your targets are!

Thanks, B^2

Money Saving Apps

I’ve been putting this one off for a hot minute, literally months, but its time to nut up or shut up so here we go.

Image result for woody harrelson nut up or shut up

We all like to save money, buying something on sale, finding that deal online, or working your credit card for maximum cash back is always a good feeling. Today I am going to share with you some of the apps I use to save money. Let’s start with Drop.

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Drop is an app that rewards you with points when you spend money at certain places. You can individualize your account a little bit based on your shopping preferences so its not a cookie cutter mold you must fit into to use this app. All that is required is linking your credit/debit cards and it’ll track when you make purchases at certain place that they reward. To share some details with you all about my personal account I currently am rewarded for Walmart, Starbucks, Chipotle, McDonalds, and Target. Below is the screen displaying those offers. As well as my rewards and the general reward page.

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Overall, I’ve cashed in $10 using this app and it can be set up in under 10 minutes and requires no additional work outside your normal spending habits. There are also plenty of opportunities to earn bonus points and whatnot to get to your rewards faster!

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My drop referral code is: ay0x4

Receipt Hog is the next app we’ll look at. It’s self-explanatory, it’s an app that you upload receipts to and it pays you for those receipts. No credit or debit cards need to be linked, nothing like that, just snap a pic of the receipt and upload and answer a 30 second survey and boom you get some coins. Those coins can cash in for an amazon gift card, visa debit card, or PayPal credit. I currently am stashing up my coins for a bigger payout, but I’ve passed the $5 mark. I have been super hit or miss with receipt hog, just with small transactions like at a gas station or something like that I don’t always ask for the receipt and I lose out that potential from the app. Overall, it’s an easy app to use however it isn’t as lucrative or easy as Drop since that is fully automated.

Ibotta and Checkout51 are going to be compared at the same time since they are very similar. They are online app-based coupons essentially. I don’t know if you or your significant other or parents were ever coupon people, but my mom use to be so that is how I can relate this. I would normally make my grocery shopping list and then go through the apps and see if anything I need had a coupon for it, they have most major grocery stores, so it shouldn’t be an issue to find your grocery store of choice. For both they require $20 in coupons to be redeemed to be able to withdraw your savings. I prefer Ibotta compared to Checkout51 due to its ease of use, how its organized, and I think it has better coupons than Checkout51. Examples can be found below.

Ibotta:

Checkout51:

My Ibotta referral code is: ficlsui

My checkout51 referral code is: https://checkout51.app.link/GN411WUkOS

For online shopping I use honey and RetailMeNot however I know there are tons of online discount sites, coupons, etc. Honey is a web browser installment that compares price history of an item you are planning to buy. RetailMeNot is an online search engine for coupon codes. I generally use both prior to purchasing something online just to make sure I am getting a good deal. I used to use a many more apps and online wholesale websites but have since eased off the online shopping as I grew older.

If you are interested in any of the above apps, I encourage you to try them out. As I mentioned before I use all the apps I explained above and I’m happy with the results. Overall, I would say I have saved around $100 since using them over the last 2 years or so.

As a college student I tend to have lower spending than the average family so pending your current financial situation and how you use the app or what your current scenario is your results may vary. Free money is free money though so why not pad your pockets a little bit more.

As always thanks for reading and let me know what you want to hear more about!

B^2

 

Passive Income update 11-4-2018

I’m back at it with another update on my passive income. Two months have passed, and we’ve made progress since I last filled you guys in. To remind everyone I currently receive passive income in the form of interest payments from Lending Club, my savings account, stock dividends, and stock interest payments.

I have invested more money into my Robinhood portfolio, stash app and my lending club account since I last touched on this subject and the results speak for themselves. Two months ago, I had received $233.74 YTD in Lending Club payments, now I am at $343.72. Stock interest and dividend payments have also increased from $186.37 to $260.89. Overall that puts me at a YTD passive income of $604.61 or $60.46/month. This is in comparison to my September numbers of $420.11 YTD and $46.68/month. This shows a 29.5% increase in monthly passive income! Below is a screenshot of my Lending club interest payments by month as you can see we have a dramatic uptick through the fall as funds were added in late summer and early fall showing the strong passive income performance described above.

LC interest snip

Unfortunately, I do not think I will make it to my goal of $1,000 of passive income YTD. The progress I have made will continue to help grow my passive income year after year with the goal of my passive income exceeding my earned income one day.

My lending club portfolio has been driving much of this passive income growth and it has not shown its full strength yet. This month all my notes will be issues and generating income and we will see what kind of profits that machine can churn out. My stock portfolio has been extremely volatile during the month of October as many investors have experienced the wild ride with me. I am optimistic of my portfolio and believe I will be making some sales in the future and picking up dividend stocks and profits along the way. My Stash portfolio also grew with considerable size over the last several months and it is likely that some of those positions will be rewarding me in the future as well.

Exciting things are soon to come as the end of 2018 approaches! Expect another passive income update at the end of 2018 or beginning of 2019 to recap the full year and see my future and ambitions for 2019. With graduation, relocating, and adulting there are sure to be some interesting topics to talk about and interesting plans in my future.

I will also be using this post to apologize for my horrendous lack of posting in October, as highlighted in my November goal picture on Instagram I have been off my game to say the least and will be using this first half of November or so to get back on track. For those of you who are curious I only had 1 blog article posted and lacked on my Instagram game as well. This article is already my second of November and many more are to come!

Do you ever get in a rut like I did? If so, leave a comment on how you got out of it or what you did to wake yourself back up. I’m sure myself and everyone reading this could get some benefit out of your words of wisdom!

Thanks,

B^2

 

Passive Income overview 9/5/18

Passive Income is all the rage these days, with ecommerce blowing up, YouTube, podcasts, blogs, investing etc. there are lots of reason why it should be something to think about. Let’ s dive into it and see what it is all about!

Passive income is income resulting from cash flow received on a regular basis, requiring minimal to no effort by the recipient to maintain it. (Wikipedia)

That sounds amazing! Minimal to no effort and receiving cash from it, but its not quite that simple. Passive income often requires either initial upfront energy, effort, and time or initial upfront cash.

My expertise is with the initial upfront cash portion, so we’ll get into that. I have been collecting data on my passive income for over a year now. I currently receive passive income in the form of interest payments from Lending Club, my savings account, stock dividends, stock interest payments, and I guess money saving apps as well. I won’t go into that last one in depth as I am saving that for an article in the future. Hopefully if you’ve been following me for awhile or are at all familiar with investing you understand what a stock dividend is. Essentially you own a dividend paying stock a every quarter or for every month you receive a little gift from the company in the form of a monetary payout for being their stockholder. I also receive some interest payments from my stocks when people short the stocks I own. Between my savings account interest, stock interest, dividends from both Robinhood and Stash I have received $186.37 this year. Not too shabby most would say, but this does come at a price to the tune of ~$12,500 invested in the above-mentioned platforms. The other vehicle I use for passive income is Lending Club. Currently I have received $233.74 in interest payments this year through that platform and that is to the tune of about $4,000 ish invested. A little calculator work later and we are at $420.11 this year in passive income, or about $46.68 per month.

I’m proud of that number to say the least but there’s more to come and in fact my goal for 2018 was to make $1,000 in passive income this year. There is still along way to go to reach that $1,000 mark and less than 3 months till the ball drops and we are standing in 2019.

My plan to get there is already in the works, I have a sizeable position building in Lending Club, in fact there is quite a lot of notes (loans) that haven’t paid me yet because they are so new. When that all comes clicking together and I continue to add to that platform I expect my interest payment payouts to sky rocket. I think I’ll put in another $1,000 into that platform or so and will be reinvesting the principals and interest payments to snowball that passive income stream and make it larger.

The other side of the coin is my stocks and etf’s I own. I have added around $750 into my stash positions and most of those pay dividends. I’ve also added $1400 to my robinhood portfolio and a decent chunk of that has gone to dividend stocks. I plan to continue to add to both and make profits on my positions to reinvest into dividend stocks as well as reinvest the dividends back from where they came from.

The goal for this is to reach financial freedom. There are various definitions to this but for my purpose it is to create passive income streams that are greater than my active income (the money I make from working). When you reach this and assuming you account for inflation, cost of living increasing etc. you can effectively retire. Now of course I don’t plan to retire super early and go live on a beach or anything like that, my mission is much bigger than that, however that is the ultimate plan.

You might be taking a look at this and scratching your head like, “Brandon, you’ve got a long way to go to replace your standard income if you aren’t even at $1,000 a year yet” and you are absolutely correct. My stock portfolio currently yields around 3%, for a modest $40,000 a year to live on my portfolio would have to be around $1.3 million at that same yield to produce that. That’s a lot of motherfucking money to reach financial freedom if you ask me.

That’s why I am looking into investing in real estate when I build my capital up. With real estate’s monthly cash flow and leverage assuming a modest 5% return not accounting for increasing rents or refinancing or anything like that an $800,000 property would yield $40,000 a year and with a 25% down payment of $200,000 you could control that. That looks much more attainable to me.

Using Grant Cardone’s 40% rule, profits from my investments, and existing passive income streams that will grow that should be attainable within a few years if all goes right.

As Warren Buffett said, “If you don’t find a way to make money while you sleep, you will work until you die.”

Now are these passive income streams passive, no. I actively invest in the stock market, I do research on the positions I take, I check lending club frequently and hand pick my loans that I invest in etc. But all in all they are pretty passive. Real estate on the other hand isn’t very passive until you get to the big leagues and can afford a property manager.

Grant’s new real estate investing book is in route to my door in STL and I will be giving that a read very soon and I plan to implement his plan and to go big on my first deal. We’re talking 24-32 units costing $1.4- 2.0 million requiring a down payment in the neighborhood of $500-700k. Like I said large upfront capital or large up-front work, time, energy.

I should also mention what I am doing right here follows that other method that I haven’t gone over. This blog while it does not produce any income and actually never has produced any income for me may be able to one day. Consider how much time I’ve spent (10 months, 60 blog posts, advertising, Instagram etc.) to get it to this point and still haven’t made a dime with it. That’s what I am talking about in terms of up front time, energy, and effort.

It will not be easy whatever passive income route you choose, but with a good strategy and the work you need to put into it the prize is pretty frickin nice.

Let me hear your passive income journey!

B^2

Internship Finances Overview

I wrote an article titled “Personal Finance Overview 7/17/18” reviewing my expenses and spending through my internship this summer. Today I will wrap up how the summer went in terms of my spending and earning. Below is a master picture of the expenses.

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If you haven’t read the previous post mentioned take 5 minutes to catch up and get familiar, the link is above. In term of the food column we brought the average down from $300 to around $265 ish this comes out to $60 a week or so. This has been very inline with my previous tracking throughout the summers. For those of you who are wondering how in the hell can I eat on $60 a week the answer is eggs, milk, brown rice, oats, chicken, ground beef, protein bars. That is pretty much all I ate all summer. Very simple very cheap. I also rarely eat out, and normally don’t purchase coffee while I’m out.

Gas money remained the same. Slightly under $200 a month, ~$45 a week. I never tracked mileage this summer, but I believe I drove over 5,000 and a decent portion of that was city driving. Not much I could have done about that, but I do plan to write off about half of my mileage for work.

Fun money! I mentioned last post about a party I was throwing and how this column was going to shoot up and it did. Landing at $260 a month or about $60 a week, which is inline with last summer. If you take out the party $115 a month in fun money. I plan to use a number around there as my benchmark for my budget for the school year. I’m sure this past week and all the drinking and partying we did we’ve already passed it but you can try your best.

For the gym I mentioned before that I had a large upfront cost and it would slowly work its way down and it has. It made it down to $65 a month. Not too bad considering the gym membership with tax came out to $35+ and going through tons of mass gainer all summer.

Girlfriend column came down as expected finishing at $200 and change. Not sure if this is an accurate number considering the plane tickets included and being further away from her this summer (aka not seeing her as often). I’m sure Christmas, birthdays and little surprises will keep this averaged somewhere around there.

Bullshit: Managed to bring this one down a bit, from $1150/month, to $1,000/month. Again had 2 rents being paid for a short period, utilities, speeding ticket and other essentials for my job. As of right now I still have not paid August electric nor have I received any money back from my deposit. I do go home Labor Day weekend so I may have a small check waiting for me when I get back.

finances3

I stopped tracking this spreadsheet on August 11th, the day after my last day on the job. I have since still worked a little in terms of answering phone calls, emails. Text messages and finishing up my last deal (got that one done today!). My cost of living came out to be $1993/month. I don’t pay for my insurance (thanks mom and dad) or anything like that so naturally its going to be lower than most other people. I don’t think that’s too terrible considering the average cost of living in the U.S is about $45k. I was at $2135 in the prior article. Now there is some skewed data, I try to finish the internship with little to no food left, usually no gas left, etc. it doesn’t account for the continuity of living and the average cost of living. However around $2,000/month wouldn’t be a bad guess.

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My monthly conversion for what I was paid comes out to $3,700 a month. I do still have more money on the way and I should be able to finish out at a total of $17,000 made. A little bit of math later (13 weeks of work * 4 = 52 weeks, $17k * 4 = $68k year equivalent). My goal was to make over $60k salary equivalent and I should achieve my goal assuming all the deals go through and I get the bonus I was promised.

A little bit more math real quick to look at Grant Cardone’s 40% rule:

$68,000 * 0.78 = $53,040       (22% tax for single person 2018)

$53,040 * 0.6 = $31,824         (40% of your after-tax income goes to “saving to invest”)

Live on $31k a year, put $21k in the sacred accounts, 5 years till $100k the minimum Mr. Cardone advises to invest.

I’ve proven I can live at $24,000 a year or there abouts with my frugal living, and I have the willpower to stick to the goal. Now the average pay coming out of my school with my degree is around $65,000 but I am sure we can do a little bit better than that. Hopefully with a good job or a side hustle or two, perhaps passive income that I’ve been building we can accelerate the 40% rule and build real wealth!

If you’re curious I ran some more numbers with the 40% rule and the current tax brackets for a single person.

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As always let me know what you think and what you want to see more of!

The Last Splurge

If you follow Grant Cardone at all he preaches increasing income above all else. The 2nd step in the process is to reduce taxes. I have done a relatively good job of that thus far, my internship allowed me to dictate how much income I make because it was a 100% commission job. I have tracked all receipts and have started researching how to minimize my tax bill this upcoming spring as well. The third step in his cycle is to save specifically “save it all”. This requires you to live your daily life without increasing your cost of living while you increase your income.

We see people violating this rule every day, some guy gets a promotion at work makes an extra $10k a year and goes out and celebrates by purchasing a new BMW. That promotion and pay increase did not make any difference since he increased his cost of living. He probably would have been better off getting a $5k pay increase and not blowing the money on material things.

I never was into blowing my money, here and there I would “treat yo self” but nothing drastic. Last summer at the end of my internship which paid me quite well and was a decent increase from the previous year ($150 more a week) I bought my only watch and a piece of wall art. That was my form of treating myself which came out to be about $250.

This summer by the time it is over and with bonuses included as well as any lingering payments I should avg a pay increase of about $350 more a week (no living stipend though) than last summer. I should be able to reduce my tax bill because of my 1099 status this year substantially. (I received about $1300 back last year, but I also had taxes taken out every paycheck and I am not taxed under my current pay system yet.) So, check box 1 and 2 for Mr. Cardone. I should also note I didn’t upgrade my standard of living during this time. I currently live in the cheapest apartment my roommate and I could find that would be able to accommodate a 3-month lease. It is cockroach infested and is pretty hood for a $400 a person month rent ($450 for 3-month lease). I drive the same car, I wear the same clothes, I buy the same food, I buy the same beer, and spend the same amount at the bars.

Onto box #3 spending: Looking over my expenses which I track to the penny, we’re looking pretty good. I went over them in a blog post about halfway through the summer and you can check them out here. I spent some extracurricular on/with my girlfriend for the vacation and everything like that. I also spent some money at the bars and on booze and other non-constructive habits and vices, but that was minimal. Overall, I didn’t blow any of my money. That is until this upcoming weekend.

I plan to spend a bunch of money when I return to home and go shopping with the girlfriend Saturday. I WANT new clothes, new shoes, a new suit, and some other Knick knacks. I say want and not need because that’s just what they are. The clothes I wear are fine but perhaps a bit dated. Some of my shorts and shirts I often wear I purchased 3-4 years ago and some are not in the best condition. I’d still wear them though, so it isn’t necessary I purchase new ones. Essentially this shopping trip is to purchase my “adult clothes” things that I will need in the future after I graduate college. That is why I call it the last splurge. This theoretically should get me the next two years or so of my life in terms of clothing and what not and would be considered the “treat yo self” portion of my saving.

Some of these purchases have been a long time coming for example the suit I currently wear I’ve owned for about 5 years, and I received a gift card for the purchase of a new suit last Christmas. The watch I purchased previously was intended to go with this new suit I plan to purchase. With upcoming interviews for full time jobs and the networking, events and other occasions I plan to attend you could consider this an investment in my dated wardrobe.

So, what do you all think? A waste of time and money or a much-needed update to prepare myself for what comes in my future.

 

 

Personal Finance Overview 7/17/18

Have you ever taken a hard look at your personal finances? I mean a hard look, like track every transaction, every paycheck, every bill you pay? Two years ago, I started tracking my personal finances during my co-op and internships. It has really opened my eyes to what I spend money on every day and gives me a better idea of where I am at with my finances. Let’s look at how I’ve been doing this summer!

finances

Above is a snip of my master spreadsheet for this summer. It contains all my expenses, paychecks, investments, some of my goals etc. Let’s go over this briefly to get a sense of what is going on. In color coded column is a category, from left to right: food, gas, fun, gym, girlfriend, bullshit. Sorry you’ve got your own column Nikki, but you cost some money and I’m not going to put you down at the bullshit level.

Anyways let’s analyze each column starting with food. Obviously, this is critical as you need food to survive and it’s a very basic need, I have included any eating out (fast food, restaurants etc.) as well as coffee and energy drinks and things of that nature. I work from my car and my job is pretty demanding out in the heat and having considerable amounts of energy is vital to my success so while I could opt for cheaper energy substitutions (majority of my coffee is from Starbucks) it is a necessary evil for me to preform well. Considering all of that, I average just under $300 a month over a 2-month span for my food consumption and it will hopefully taper down to $250 when I near the end of the summer.

Next up is gas, again a very necessary portion of my job is I must drive a lot and I also travel back home and back to school on occasion (200+ mile trips one way). At just under $200 a month on gas, I do go back to STL this upcoming weekend but that should be my last trip home besides actually going home for the summer, hopefully we can reduce that expenditure a tad and I can drive more efficiently.

Fun money! This is the column I try to minimize the most, as you can see I have some of paid subscription services but in my defense, I pay for the Netflix for my whole family and my brother and I use Spotify and I pay for it all. But besides that, you see alcohol and tobacco costs taking up the bulk of this column, I will have a substantial increase here as I will be paying for copious amounts of alcohol this weekend. Its gonna be litty titty.  This column will make its way up to $200 a month without a doubt here shortly.

Gym: If you didn’t already know my health and fitness is very important to me as I am a rugby player and have been lifting all my teenage years. The gym membership was a large upfront cost and I should have enough supplements to get me through the rest of the summer, hopefully this column ends at about $60-75 a month in costs.

Girlfriend: Sorry not sorry but you cost me some money this summer babe. Mainly in plane tickets to vacation but also lots of food and nice little gifts. Again, I wasn’t going to put it in the bullshit column so it gets its own column. There probably won’t be any additions to this column for the remainder of the summer so hopefully ending around $200 a month on this one.

Bullshit: this one is a toughie. To preface, this isn’t all bullshit like obviously I need to pay rent and to live somewhere but that’s what I called the column even when I wasn’t paying rent, so I stuck with the title. As you can see we have a deposit and lots of rent, I am paying 2 rents right now, one for Rolla (college town) and one for here in KC this summer. That started in July and my KC august rent will be low and the Rolla rent will increase slightly so it’ll lighten the load overall, but July rent sucked up a lot of my money. We have electric and internet bills, they both had start up fees, so they have since flatlined and we’ll only need to pay another month of two of those. Some of my supplies for work cost me a decent chunk of change including ladders, shoes, clothes, but those can be tax write offs as well. I also got my first ever speeding ticket this year which cost me $220 to get it moved to a non-moving violation. Anyways this is the largest chunk of my costs but hopefully with august being a short month it will taper down, and I can get my deposit back and we can wash our hands of this.

As of today July 17, 2018, my monthly costs of living is $2,134.50, I’m not sure if that is a lot or a little compared to most of the people reading this. I don’t have kids, I live in a cockroach invested shit hole of an apartment, I am partially paying for two rents, I eat cheap, etc. My assumption would be yes this is very cheap cost of living. I would like to reduce it further though. As I’ve stated above for some of the columns they should not increase anymore and as father time keeps ticking my avg cost per month will reduce. I had the goal of $1500 a month this summer however that was way underestimated and simply won’t be possible, I would like to have a cost of living under $2,000 though I think that would be very reasonable considering the circumstances.

My monthly conversion for what I am paid comes out to $3,033 a month. To me this is extremely low and pisses me off, (salary equivalent = $36,400) because I made $50k salary + living stipend last summer, and I am working significantly harder than I did last summer. My numbers should bump up soon and I will get a bonus as well at the end of the summer which will help. My goal was to make an equivalent of $60,000 salary from this job and I am very very far behind that goal.

As always let me know what you think!

Do you keep track of your personal finances? Do you keep track like this?

Could you benefit from tracking like this?

How do your expenses compare with your income?

Thanks, B^2