It's my favorite time of the month! I love sitting down and getting the privilege to write about the happenings of the Independence Fund. I really enjoy reflection one the month and being able to track my progress from last month. The feelings of excitement and motivation never seem to fade when ever I'm able to look back and reflect on how much my account has grown from only a month ago. I nick named my portfolio the Independence Fund as one day this fund that I put so much time and hard work into every month will some day allow me to become financially Independent from work. That is the whole goal of this website and my Fund.
I received dividend payments from two companies this month, WMT and KMB. With these two payments I was still able to hit a total of $30.71 which is better then nothing. I also managed to finally sell my GME position and reallocate the funds into a few of my holdings which I wrote about here.
I also had two companies in my portfolio increase their annual dividend payouts which were JNJ and XOM. JNJ hit the sweet spot with a 5% increase and XOM managed to squeeze out a 3% increase. These both affected my annual dividend payout by $1.94, $1.84 or $3.78 respectively. This did help boost my Dividend payout to $1,219.82. Although this wasn't a massive increase it was extra money that I didn't have to do anything extra for and this number will continue to compound as I reinvest my dividends, add to my positions and the increases keep rolling in. I'm confident that one day I will see dividend increases affect my annual payout by over the $100 range which will be a crazy thing to behold.
With the new allocation of my funds and the dividend increases I have a forward looking annual expected dividend payout of $1,219.82. I only need to increase my annual dividend payments by $5 this year to hit a whole extra paycheck! Once that is achieved I will have officially given myself an extra paycheck every month in the form of dividends. This is exactly why I love dividend investing. I hold the ability of being able to increase my annual income by choosing to save my money and be wise with my spending.
This hasn't been the best month for me or the Independence month but I was still able to increase my monthly balance which is fine by me. I was short of my monthly goal of $2,187 per month but I still managed to swing a 3.53% increase or $1,078 over last month. With the new balance my portfolio is at a new average monthly savings rate of $2,202 which is perfect! I will just have to buckle down and maintain this rate through out the year and I will hit my goal in no time at all! Portfolio Increases every month can't be perfect and it's best to remember that some people take months to even save just $1,000. With that being said I'm still happy with the direction my fund is headed.
Speaking of expenses, I have received a blessing in disguise which is a allowing me to get out of a stupid 6 year mistake that I made. I made a really poor mistake last October and I decided to buy a 2017 Subaru BRZ. I had a perfectly capable and working 2013 Ford Focus that I had sold and rolled the money into the Subaru. Mistakes after mistakes. The first was an impulse purchase of the Focus back in 2013 when I first received my pay raise. I jumped the gun on this one due to the fact that I really wanted a manual vehicle and I was sick of driving my 2006 Mazda 6 slushbox. With my goal of a manual vehicle in mind and armed with a new pay raise I made the decision to buy the focus. It was a great car but I said to myself that I wanted something quicker and sportier. I talked myself into getting the BRZ after receiving another great pay increase and thinking to myself that I should enjoy a bit of my money and hard work because I could die tomorrow and all the money I have accumulated would not have been enjoyed at all.
Long story short, I have had issue after issue with the BRZ and it has been out for service repair work for 3 months now. This was my blessing in disguise as it is allowing me to do a vehicle repurchase and receive my full purchase price back on the vehicle. After making car payments again it made me realize how stupid it was for me to purchase another new car. Thankfully I was given an opportunity where I should of had to learn a harder lesson for my actions. I have seen the light however and I will be taking the left over $10,000 from my vehicle repurchase and investing $2,000 of it and using the rest to purchase a used car.
I'm investing the $2,000 into my Independence fund because this is the extra money I have made in auto payments over the past 7 months that I should have been putting towards my financial Independence instead of a new vehicle. The more and more I think of this concept, the more excited I get about getting this car off my hands and putting this money to work for me as I should have done from the beginning.
The Hunt will be on soon for another manual vehicle and I think I have my eyes set on some used luxury vehicles as I'm really enjoying the 2008-2012 BMW line. I believe they offer a very nice level of affordability, current mileage and price. The manual versions also boost decent horse power of 230-290 depending on the model.
The expenses for April seems a bit higher then It usually does due to a mess up on my end. When I was going through and automating my accounts I made a very silly mistake. I had a payment that was pending to pay off the statement balance on my Capital One Card and I had set up a new reoccurring statement balance payoff. of course I didn't think to cancel the payment and I was basically I paid off the card completely. This was rather annoying as my statement balance was only $1,024 versus paying the extra $500 that wasn't due until May.
Expenses For April = $3,050
With all said and done, it ended up being a pretty decent month. It wasn't record shattering like last month but, you can't expect gains like that month after month. I'm really looking forward to the next month of investing and I plan on putting the extra $2,000 along with my monthly capital contribution to work for me as soon as I receive it.
I have already planned what I want to do with the money but obviously that can change depending on how the markets treat me next month. Currently I plan on boosting my positions in ABBV, JNJ and KMB. I would also like to add a new position to my portfolio next month and currently my eyes are on LEG, EMR and GPC. Obviously I have my sights set on a company within the manufacturing sector.
Thanks for checking in on my update to financial Independence and I hope everyone had just as great or even better of a month then me!