A year has once again changed, and January is already
almost halfway. Year 2015 was very lucrative for me, including a few nice surprises in the form of additional dividends as well as a few disappointments in the form of dividend cuts. So now is the time to look at how I managed during the fourth
quarter, and how my journey towards financial independence is progressing. As I
mentioned in my first income / expenditure report, I will make a summary on a
quarterly basis, because my months in the case of income are very different.
This will give me a better view of the overall situation and hopefully will
inspire some of my blog readers.
Here are my numbers for Q4:
All revenues are reported net of taxes.
During the fourth quarter of the wage income was pretty
good. In October and December I worked one extra weekend, for that reason
income are slightly higher. Expenditure in November was a lot higher than my
average, the reason for this are the new winter tires, a new computer monitor
and a holiday trip airline tickets, a total of € 747.82 . December spending
includes a payment of an extra tax of € 238.81.
My goal is to save about half of my wage income and
invest those wisely. In the fourth quarter I clearly missed my target, due to
high expenses in November and December, my saving rate of wage income was only
33.10%. When I take into account also the dividend income, my savings rate
rises to 47.07%.
One thing that I will follow with great interest is the
dividend income and expenditure ratio, because it is the most important thing
on my way towards to the financial independence.
Due to the huge additional expenditure, November looks
pretty bad compared to the other months. All in all, The fourth quarter was the
worst of 2015, dividends covered only 39% of the expenses.
Let's see what the result was for the whole year:
My expenses were an average of 1440 Euros and my salary
was an average 2660 Euros per month. As you can see, during the year I managed
to save 45.90% of my wage income, so I missed my goal, which is 50%. Of the
total income my savings rate in 2015 was 59.87%.
Last year, my dividend income covered 64.36 per cent of
my expenses.
Despite my expenses increased towards the end of the
year, I am very satisfied with my achievement. I look forward to the next
year, as I mentioned in my Review
of the Year, dividend income hopefully will be at same level as in
2015. Wage income will increase only by doing overtime and expenditure
hopefully will be less than in year 2015.
Thanks for stopping by!
Photo Credit: Stuart Miles/FreeDigitalPhotos.net
Hurja säästötahti sinulla!
ReplyDeleteOnnea vuodelle 2016.
Good luck.
Wow, you are covering close to two-thirds of your expenses with dividends alone? This means that dividends can cover 8 months worth of spending for you, which is a big accomplishment.
ReplyDeleteIn just a few short years you should be able to reach the dividend crossover point.
Good luck in 2016!
That's awesome you're able to cover so much of your expenses with dividends alone already! AT +11k euro dividend in 2015 it's looking really god for you. Can't wait to see how you do this year.
ReplyDeleteNice job Dividend Hawk, that's a huge amount of dividends and you're covering so much of your expenses!
ReplyDeleteYou're really on track to being FI, sweet.
Good luck with 2016,
Tristan