May 2013 Monthly Expenses


My goal this year is to save 80% of my net income. This includes income from all sources: W-2, bonuses, 401k contributions, ESPP, stock options, RSU’s, rental properties, dividends, etc.

This is my first update in a few months as I had been pre-occupied with work and trying to close Rental Property #2. My expenses were also erratic since I had so many one time expenses to account for (mostly due to the $20k rehab). As such, I never got around to running the numbers from February-April timeframe. Eventually, I’ll try to get around to calculating these numbers.

The reality, though, is after one year on this early financial independence journey, I’ve kind of just gone on auto-pilot with my monthly expenses. That is, I don’t really even feel the need to keep tabs anymore, since my spending habits are so ingrained now. I trust myself not to over-indulge, and if I do from time-to-time, I’ll know what steps I need to take to auto-correct to get things back to steady state.

May marked the first month where Rental Property #2 was ready to go and starting to collect rent. This helped provide a big boost in the savings department as I was able to clear 80% (81.45%) for the first time this year. Also, I received a nice $1000 bonus from work for doing a good job on a past project from last year. After taxes, I was left with just under $600, but hey, I’ll take it. Free money never hurts!

Other than that, most of my other expenses were inline with what I’d usually expect. One plus is that I didn’t have to fill up on gas this month! I started biking in May, and am already grateful I’m doing this. Not only b/c I’m saving a hundred bucks a month or so, but mostly for the health benefits. All that exercise is even making work a little less painful these days. We are near the half-way mark for the year, and I’m excited to be that much closer to financial freedom!

Here are the numbers for May:


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7 years ago

Wow 80% is definitely awesome!

7 years ago

80%, hmmm. If you include my RSUs, my projection for the year is currently off by about $3,000 to hit an 80% savings rate. That could happen!

Congrats on hitting $0 on gas in May! I might have to fill up twice this month, which is a little annoying, but ah well. I don’t drive to work at least. I can’t believe you only spent $482.11 last month beyond your rent… You’re way better at being frugal than I am.

Dividend Mantra
7 years ago

FI Fighter, Congratulations on the success so far with the rental properties! You’re going to be free before you know it. It’s great that you have both rented out and everything is stable. However, I don’t think I’d calculate that as a 80%+ savings rate. Certainly mortgage costs are an expense to a degree, even though part of it is paying off the principle (equity) in the asset. If I owned a home I would certainly count my mortgage as an expense, and I would count it as an expense to offset any rental income if I was renting it… Read more »

7 years ago

You are doing a great job! Man do you rent a closet the Bay Area is expensive 800 dollars that’s great. I glad you will be free soon

7 years ago
Reply to  FI Fighter

That’s great keep it up you help me stay motivated thanks for your blog!



Great job. Positive cash flowing rental properties in the bay area is an amazing accomplishment.

Actually, as far as including the numbers in your monthly savings/expense ratios, I might recommend that you exclude all rental income/expenses from any monthly personal budget. An annual accounting should be sufficient especially since repairs and vacancies really tend to scew the numbers in any given month. Just run take the net profit/(loss) annually and then prorate it accross 12 months. Cleaner and simpler. At least that’s what I do.

Either way, great job!

7 years ago

Impressive, man and congrats on your results. the 80% goal is really something. You will be free really soon if you manage saving such amount of money and invest into more income making investments. The only thing I can think about the difference between real estate and stocks (besides dealing with tenants) is that real estate can bring you large cash basically right away (or as soon as you rent it) while with stocks you have to wait a lot longer before the dividends kick in in large amounts. I think.