August 2017 Independence Fund Update


It's been another great month and Excited to put yet another month down in the books. It's been quite the journey so far watching the Independence Fund grow from just $5,000 to now over $40,000! If someone told me just two years ago that I could have this month money saved up just by a little bit of dedication and cutting my expenses I would have called them crazy yet here we are.

This is absolutely my most favorite part of the month because I get to statistically calculate and figure out my percentages and averages which really helps put it into perspective on how quickly I'm accumulating this snowball! It also really helps me with a short of realization and appreciation. 

Last month was also a pretty good month for dividends received also. I received payouts from three companies. T, ABBV and OHI totaling $112.04. These are a few of my higher yielding funds and it's always great breaking the $100 mark in a given month for me. As my account continues to grow I'm expecting to be breaking this amount more and more often as time goes by. I'm also looking into picking up a monthly paying dividend stock or two which will help balance out my month to month dividend income.

With that being said, my portfolio currently is composed of 18 companies which is just 2 short of my yearly goal of 20. I have my eyes on a few such as EMR, ED, WHF, O, MAIN, GWW, MO and ADM. This is a big list I know. I also am torn between adding more to a few of my losing positions but I'm not to sure if that would be a good idea or not. Perhaps some insight from a fellow blogger could help me with that. I do have a few relatively small company positions that I would like to bring up to balance my portfolio up but at the same time I would also like to continue to diversify and grow my holdings. At my current rate and time left to grow my fund I mite end up expanding beyond my 20 holdings goal for sure.

I know some people that can't even save $100 per month and here I'am growing this fund balance by an average of $2,100 over the course of the last 18 months since Inception. This is a really big confidence booster for me since some times I beat myself and think to myself that I could do even better. It's true I could most lily save even more but I still try to have a rather balanced life. I don't want to go move into a shed just so I could save every penny I can. 

Let's get into expenses for last month. It was a rather decent month with just a few extra bills that popped up but nothing to crazy. Expenses were up over last month by $201. Not horrible by any means but I'am trying really hard to bring my expenses as close to $2,000 per month. 

Total Monthly Expense = $2,294

A few other account happenings which may derail my progress for the month of September are my Summer home taxes. I was bad and withdrew a bit more money then I should have from my escrow fund in order to take advantage of some stock deals. These have panned out rather well for me so far and I'm not particularly upset with my self for doing it. I will however practice more self restraint in regards to this fr next time so I don't short my fund to much next time. I'am very lucky however because the month of September is a 3 paycheck month for me which should still help me pump out the average I need to grow my account to $50,000 by the end of the year. 

I was able to grow my account by $1,262 or 3.16% last month. This isn't as high as I would have liked it to be but my account took a nice tumble last month in terms of investment growth and I lost a pretty decent chunk of growth due to that. I was on track to post some great numbers but the whole North Korea tensions really impacted my fund. I'm not to worried about it however and I'm still expecting to hit my goals with or without the investment gain I lost. I'm still up investment wise for the year 7.14% and I expect this to continue unless something unfortunate happens. 

With last month in the bag, my new account growth average for 2017 is at an impressive $2,307 per month. With only 4 months to go and such a great average I don't think I'm going to be running into much trouble hitting the $50,000 mark unless the markets really take a turn for the worst. If that were the case though it would create some great buy in opportunities. 

I'm really hopping to have some extra cash flow to put into the Independence Fund towards the beginning of this month but we will see with how this months finances are working out and pay days it might not be till the middle of the month. The more research I have done over the past few weeks I'm really liking the current position and statistics of MO. If I'm able to purchase in before the ex dividend date on the 14th I'd be eligible for the Dividend Payout which is what I would ideally like. 

I'm looking forward to the next month also as I have a lot of dividend payments coming in which makes me very happy as this is at the heart exactly what this account is intended to do. I do get caught up talking about total portfolio value but it's always good to remember that I'm here for the passive income this account creates for me. It still amazes me at the true power of dividends and passive income and I'm definetly addicted to it.