The expenses have been truly tested this past 4 weeks, within this period we had the UK Mayday Bank Holiday which consisted of a 3 day event where we met up with various family members since that is what we are spending time here for after our years living in the USA. Additionally it appears a certain DN Jr has developed a taste for pitchers of Long Island Ice Tea from Wetherspoons which were funded mainly for our own entertainment value, suspecting parent of the year awards won’t be coming our way any time soon..
These type of occasions are always marked with a few alcoholic drinks and meals at various bars at different locations in nice weather so are therefore a fine balancing act between keeping the budget from running away with itself while trying to not limit the fun and enjoyment. We always knew these scenarios were going to be the unknown financially so just made the decision that we would view them as portfolio robustness tests.
From our regular budget perspective it looks like we have pretty much got a standard monthly overhead here of about $1500 including rent, food and all utilities. As we said last month if we can achieve our goal of buying an investment property and dispense with the rent then we can easily bring this down more in the range of $750-800 per month making life considerably easier.
Here is the budget from mid April through mid May including the Mayday Bank Holiday. We are glad Mayday doesn’t come around too often but understand that this expense will invariably be replaced by birthdays and summer trips like our visit to London next week.
So here are the expenses for the last 4 weeks:-
- Rent = $732
- Groceries = $264.38
- Eating out/Drinking = $223.25
- Transportation = $49.10
- Cell (x2) = $45
- Council Tax = $158
- Utilities = $123
Total = $1594
In funding this month we were also pinched by a less than stellar rental income caused by paying fees to the property management company in Savannah for the tenants’ new one year contract and the replacement of a faulty mixer tap in a shower. These things just happen with rental property so no big deal.
This left our rental income at a lowly $511 for the month though so we needed to use all the income sources, interest income at $302.35, P2P at $195.60 with dividend income supplementing the rest at $585 to make the books balance.
All in all a little scrappier month from an income perspective than is ideal but at least we are still in the green thanks to New Residential REIT (NRZ), British Petroleum (BP) AT&T (T) and Verizon (VZ) stepping up with the lions share of the dividend income.
Times like these we are thankful we have dividends to provide the diversfication that keeps the ship afloat.
We are long NRZ, BP, T and VZ.
Thanks for reading,