January 2023 Dividend Income and Expenses

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Now that my consumer debt has been paid off, I’ve decided to keep track of my expenses as well as how much dividend income I’m receiving. Because I was so focused on my payback approach, I was unaware that I was losing money by not using a cash reward card to purchase regularly used services and commodities.

Only one of the four credit cards I own offers rewards programs. It was my credit card from HSBC. It was the first card I used the snowball method to pay down.

So, I decided to get the Discovery Cash Back credit card.

From Debit card to Cash-back reward Credit card.

Three years ago, I remember on one of Dave Ramsey’s shows, he told a caller who was having a hard time paying off her debt, “If you cannot pay for it with cash, you have no business using a credit card.” He was spot on when he said that because it hit home.

Since then, I’ve used it as a tactic to cut back on unnecessary spending, and it worked. However, I’ve returned to utilizing my now new cash-back credit cards for these three reasons:

No annual fee: At least for the time being, I don’t like any credit cards with annual fees. This can change in the future when we plan to travel the world. That being said, you don’t have to give up some of the benefits to pay a charge, so that was a significant advantage.

Pay off the balance in full: You will be charged interest each month if you can’t pay off your balance in full every month, which defeats the purpose. Maintain your spending within your budget as if you were using cash.

Shopping perks: You can receive cash back for regular purchases made at gas stations and supermarket stores. Although I don’t do much grocery shopping, I occasionally buy things for the house. I spend around $30 each week on gas and use the Exxon Mobile app to earn points; it looks like a win-win situation for me.

In a couple months, I’ll give an update on how everything turned out.

Dividends for January 2023

Dividend income for the month of January is $22.77. For the past three years, I’ve enjoyed watching the miracle of compound interest play out in my taxable account. I have not changed how I invest; it has remained the same throughout.

Yet, given how quickly it is increasing, I am excited to see what it will look like in ten plus years.

January Expenses

$2,074.92 is how much I spent in January. I’m fairly certain we could have added another thousand dollars if I knew the wife’s spending, but since I don’t, I’ll just continue to give my assessment.

Fuel

Since I work from home, I make an effort to drive less, especially when it’s so cold, to save on gas. I don’t want to go outside. We always use the wife’s car when we go out. It has a remote starter and is more efficient.

If you reside in a state or another area that frequently experiences temperatures in the single digits, you’ll get the point.

Groceries

When I go food shopping, I almost always have a definite purpose in mind. Every now and then, I like to surprise the wife and the kids. We have a defined budget for food, so I’m amazed I spent so much.

Internet

My promotional rate ended this month, so now my new rate is $104.99 (previously $79.99). So, I decided to shop around.

I can only receive 5G with Verizon Home Internet, not Fios, which I don’t like because our family enjoys streaming. I’ll go nuts if my connection gets spotty, so I did not bother moving forward. As a result, I did not bother checking with the remaining two internet service providers.

If Verizon or any other company is unable to use an area that is already wired, this indicates that Spectrum, my service provider, has a monopoly. I could be mistaken, but that’s how it feels.

Any suggestions on how can I reduce my internet cost?

Mobile Phone

I’ve been using my employer’s cell phone for personal use, so there will never be a charge. Anyway, I don’t get that many calls. WhatsApp, which can be used over Wi-Fi, is the only app I mostly use for communication.

For me it’s an extra device I have to carry.

Rent

Our monthly rent has increased from $1360 to $1400. Given the rise in inflation and the unpredictability of the financial market, I’ll accept a $40 raise every year if necessary. We are, however, currently looking for a house. Although investors are buying them all in cash and there is so little inventory, we are optimistic that this year will be the one.

Other

I enjoy lighting up a good cigar once in a while. I wouldn’t describe myself as knowledgeable about cigars, but I have tried a fair number of good ones, and there is a good reason why they can be expensive, depending on your financial situation.

I estimate that I spend $60 per month on five or six cigars. Never do I go over that limit.

Do you enjoy smoking cigars? Tell me in the comments if so. Please share any recommendations you may have with me.

Conclusion

The month of January was a good one, as far as I can tell.

I’ve been waiting for the stock market to drop into correction mode so I can purchase more stocks, dollar-cost averaging great companies I already own, but for the month of January, the stock market only went up.

In the meantime, I’ll keep more cash on the sidelines and be patient.

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