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.
Saving all of one person's income is a great idea. Hope, you will reach that goal soon!
ReplyDelete2 percent aint bad! Better then 1. Car payments suck. Would be huge if you could save her whole cheque! Keep it up.
ReplyDelete2 percent aint bad! Better then 1. Car payments suck. Would be huge if you could save her whole cheque! Keep it up.
ReplyDeleteYup. We are trying to get there. But, as of now its 2% :-)
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