Sunday, August 13, 2017

Dividends & Expenses

I started dividend investing in January 2015, its been about 2.5 years. My dividends have been increasing steadily and i am quite happy with my progress. However, context matters. What % of my expenses is met through dividends? It seems it is more indicative of my progress then the actual dividend increases.

I started looking at our monthly expenses and tried to evaluate the exact percentage. It seems like 2% of my monthly expenses is covered through dividends. It excludes variable expenses like groceries, gas etc. The idea was to get a reasonable estimate of % of fixed expenses met via dividends and then track it going forward.

One of the recurring expenses is Mrs.DG's car loan. I am a little unhappy with the loan payment (I generally buy used cars) ... However I am not complaining ... It's always good to have a reliable car.

The principal payment is not really an expense as it goes towards my home equity. In the long run I would like to reduce Mrs. DG's contribution to 0%, so we can save all her income.

1 comment:

  1. Saving all of one person's income is a great idea. Hope, you will reach that goal soon!