FORWARD DIVIDENDS

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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.

4 comments:

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

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  2. 2 percent aint bad! Better then 1. Car payments suck. Would be huge if you could save her whole cheque! Keep it up.

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  3. 2 percent aint bad! Better then 1. Car payments suck. Would be huge if you could save her whole cheque! Keep it up.

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    Replies
    1. Yup. We are trying to get there. But, as of now its 2% :-)

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