Thursday, November 16, 2017

Net Worth Update – Oct 2017 – $13,386



$13,386 - October 2017


This will be my first ever Net Worth “Update”.  I wasn’t sure tracking my net worth online, publicly, was something I was ready for, but I think now when it’s low, rather than later after it grows, is better information for any reader that stumbles upon my blog.  I think this look into my net worth and what I do, did, and will do, will be beneficial to anyone living on a single income.  Shit, it may even be beneficial to anyone in the DGI community.  I don’t expect my growth to be much at first, but it’ll be nice to see any gain, and it’ll be nice to have this and future posts to look back on as I move forward in my investing journey.  I plan on monthly updates and I’ll link them on my newly created Net Worth tab at the top of my site.

So, without further ado, here is my first official Net Worth posting.

Month:
Sep
Oct
ASSETS


Checking Account
$500
$500
Savings Account 1
$1,000
$1,000
Savings Account 2
$0
$200
TD Ameritrade Account
$700
$1,030
Simple IRA
$3,433
$3,931
Land Cruiser
$3,000
$3,000
BMW
$3,000
$3,000
GMC Pickup
$1,500
$1,500
Total Assets
$13,133
$14,161
LIABILITIES


Bank Loan and Visa
$1,575
$775
Total Liabilities
$1,575
$775
Net Worth
$11,558
$13,386
Change

$1,828

Checking Account:  This account, for the most part will remain around $500, after everything hits.

Savings Account 1:  This account will remain at $1000

Savings Account 2:  +$200 – I started saving again

TD Ameritrade Account:  +$330 – I added to it and realized some growth

Simple IRA:  +$498 – Payroll additions plus Company Match plus growth

Cars:  These values pretty much remain the same (KBB and Craigslist).  They have all but stopped depreciating.  These suckas be old.

Bank Loan and Visa:  -$800 – regular budgeted payments.  This was paid off in early November, but I added some medical bills to my Bank Visa so I’ll keep this debt going on this line

Overall – I reduced my debt by $800 and added $1028 to my assets.  October was pretty good.

Sunday, November 12, 2017

Milestones - Hitting the Small Ones to Catch the Big ones



From dictionary.com:  British Dictionary definitions for milestone

milestone

/ˈmaɪlˌstəʊn/
noun
  1. a stone pillar that shows the distance in miles to or from a place
  2. a significant event in life, history, etc

I like the the British Dictionary version of the definition, but I like to read it as a pillar that shows a distance FROM a place.  My place was a negative net worth, zero savings, and zero investments.  I made some pretty drastic changes in my financial life that put me on this upward and outward path, allowing Milestones to appear in front of me, and giving me the ability to walk right past them to see more.

I recently hit a big to me, but relatively small milestone since I started investing in Dividend Producing Stocks earlier this year.  Since my purchases are small right now, this Milestone is a big first for me.  I hit the $1000 mark (Market Value) in my TD Ameritrade account after adding a position in (XOM).  This is exciting for me.  I love opening the TDA app and looking at my balance, seeing some gains, but also seeing some losses, and also realizing some dividends from the few holdings I have.  This community is equally exciting, reading about everyone else’s daily lives, their big wins, and just their progress in general.  Most impressive is the support that comes from this community.  Everyone has the same interest in achieving something bigger.  Goals are made.  Goals are achieved.  Goals are supported.

I imagine for a while, my Milestones will be slow and low, but fear not fair DGI community, I plan on reaching more, and reaching further.

What was your first “big” Milestone?  Were you as excited as I am???

Friday, November 10, 2017

Purchase #9 - A New Position - Exxon-Mobil

If you’ve been following along, you probably would have guessed that my next purchase would have been more Ford.  Well, after just posting about my mothers and uncles holding in (XOM), and having them on my watch list since I started investing, and them being a Dividend Aristocrat and all, I decided it was time to start a position with them.
 
Since I’m still not quite debt free, I only have $100 allocated in my budget for this paycheck to go in my TD Ameritrade account.  So I only was able to purchase 1 share at $82.69, but I’m excited to start this position.

Also, their ex-dividend date is today.  I’m not sure if my purchase made it in time.  Do they count it at the beginning of the day or the end of the day?

The power of DRIP and holding - Two very different strategies - Two very decent results

Examples from my Family


My mother and my uncle were both given around 83 shares each of (XOM) back in August of 1981 by their grandmother.  At the time, they were roughly trading for around $4.00 per share.  I don’t know the details of how the transaction took place, but I assume it was willed upon her death.  What I do know is (most of) the history of these shares since they changed hands to my mother and my uncle, and I do know their share quantities today.
At the time, my mother was deep into family life married with 3 kids.  My father was career Army (oddly, he was stationed in Virginia Beach for most of his career) and my mother worked, I think, part time while we were younger and later full time as we were older.  They chose to not utilize the Dividend Reinvestment Plan - DRIP, and instead used the quarterly dividend check to help maintain our family life.  We were just a standard working class family.  I don’t think we ever suffered and I don’t think we ever had more than we needed.  They have always made decent money and still do.  My dad still refuses to retire from his post-military career.  

My uncle married and him and his wife moved to DC to work at various (never named - couldn’t tell) employers, had no kids, and chose to take advantage of the DRIP.  They have always invested and made decent money.  Luckily, for the purpose of this comparison, they never added any more money towards further investing in (XOM) until March of 2005 where he stopped the DRIP and chose to instead invest the dividends from (XOM) into other holdings to better diversify the weight in his portfolio.  So this real-world comparison shows how their respective shares faired taking these two different routes over 24 years of holding this particular investment.

Through the various splits and the merger with Mobil, they’ve both realized increases in share quantity.  My mom now has 996 shares with no DRIP.  My uncle has 2264 shares leveraging DRIP.  His shares more than doubled by reinvesting the dividends.

This real-world case shows 2 very different results, but both cases show that good things happen in either plan if held long.  My mom’s 996 shares doing nothing and getting that extra quarterly bonus ain’t bad.  My uncle’s 2264 shares without the quarterly bonus ain’t bad either!

The lesson here seems to be to invest early and hold long.  DRIP also helps, but time seems to be the number one factor in the investing world.

Do you agree about time being a HUGE factor in investing?  What other factors do you see as significant?

Thursday, November 9, 2017

I Don’t Feel As Excited As I Thought I Would After Paying Off My Personal Loan


Y’all remember that dang ol’ debt I’ve been working on???  Well, yesterday, I threw $400 at it after ensuring my checking account wouldn’t drop to an uncomfortable point.  Technically, that $400 was in the budget from my last paycheck and should have been paid to the loan on 10/27, but I spent a bit of Amazonian Budget Buster money on my beater cars and other stuff mid-October and I wanted to make sure I could make it, as in not spend any un-budgeted money, to the next payday.  I made it y’all, and slid the $400 to my loan yesterday, AND I sold a dining room set last night for a little extra pocket cash.  Since tomorrow is Veteran’s day, we got paid today instead, so I paid off the final $397.53 this morning.

The loan is gone, but I’m not debt free as expected and as hoped.  There’s no screams of joy, yet.  There’s no dancing, yet.  There's no celebration, yet.

You see, that, VERY painful, Kidney Stone ended up costing a little bit.  After Insurance finally kicked in their share, I was left with about $1700 in medical bills.  I’ll continue my budgeted line item of $400 per paycheck to tackle this last debt.

THERE WILL BE SCREAMS OF JOY.

THERE WILL BE DANCING.

I WILL CELEBRATE THIS ACCOMPLISHMENT.

Amazonian Budget Busters – When Beater Cars Desire Attention





My Beater Cars need love too.

In mid-October, the BMW had a slight miss on acceleration because of a misfire on cylinder #6, and I could have fixed it with a $20.46 coil (I love Amazon).  I decided instead I wanted six new coils, new spark plugs, and since I found a small amount of oil around one of the spark plug wells, I wanted to change the valve cover gasket and spark plug well seals also.  So my $20 repair turned into around $179 in parts (I love Amazon) and two hours of my time.

The Land Cruiser needed a new radio antenna because it was lopped off after catching a tree limb on a tight trail and I was sick of listening to the cd’s that were in there.  Since I’ve had it, ONE speaker worked.  I wanted 4 new speakers, so I bought new factory replacements for $40 that sound great (I love Amazon).  Back in my younger years, I would have spent more money on SPEAKER WIRE alone and spent insane money on speakers, amps, equalizers, and other such items for superb sound.  These cheapo speakers sound great and they fit in the stock speaker holes.  So total, I put around $58 into the cruiser to “upgrade” the stereo system.  It wasn’t needed, but it was wanted.

Blue, Baloo the Bear, didn’t need anything, but I wanted to upgrade the radio in there to be able to have an auxiliary input so I ordered a dash kit that replaces the stock radio (a funky non-standard size) with a pocket and moves the new radio (already have) to the center dash area.  The kit, with the matching color dash pieces, an antenna adapter, a wire harness, and the pocket, was only $26 (I love Amazon).

Since I have a slight addiction to Amazon, I also ordered some fire starter material, Fatwood (this stuff is amazing), a new harness for the girlfriends dog, new scooter wheels for my youngest boys birthday present and new front and rear brake pads for the girlfriends car.  I should invest in (AMZN) stock!!!

Tuesday, November 7, 2017

October Dividend Income



October Dividend Income


 

October marks my third month of receiving dividends since I started investing earlier this year.  I made a tiny $1.25 of dividend income, but it’s higher than zero and my money is finally doing something.  Since I had zero dividends last October, it’s a huge increase.  I am excited to see what next October shows.

(CSCO) – $0.88 – This is my second dividend from Cisco.  I only have 3 shares, but all 3 of them make money!!!  I didn’t expect to see this dividend until November, but they hit early and posted in October.

(BF.B) – $0.37 – This is my first dividend from Brown Forman.  I have 2 shares and hope to add more to this position (if I can make a plan to purchase something other than Ford)

With automatic Dividend Re-Investment, my shares are not really growing that much because of the low number of shares, but they are growing and that’s pretty exciting to me.  I plan to keep going and keep growing.

How were your October numbers?  Did you see anything not expected?

Net Worth Update – Oct 2017 – $13,386

$13,386 - October 2017 This will be my first ever Net Worth “Update”.   I wasn’t sure tracking my net worth online, publicly, was s...