Live Off Dividends

Passive Income and Personal Finance

Month: May 2016

May 2016 Update and Cash Flow

This month has definitely been a pretty crazy one for me. Early this month I finished my real estate classes (finally.) It was a 6 week program and it was roughly 18 hours per week. While it was interesting and I learned a great deal, on top of my normal 40 hour work week needless to say I’m glad that it’s over. The licensing was expensive so I had much higher than normal expenses this month. Other than that the weather is finally looking up and I had a great Memorial Day weekend. From swimming, to partying, to going out on the lake and finally relaxing it was a much needed extended weekend with the girlfriend. 2016 Goals.

 

Financial Goals

 

Increase Dividends to $1,200 per year (84% YTD Goal)

In May I received $45.60 from dividends. This brings the total amount of dividends I’ve received in 2016 to $173.13. I invested $1,280 into my dividend portfolio and reinvested the $45.60 I received from dividends. That is going to make me another $50.48 per year bringing the total to $1,010.47. I’ve finally reached the $1,000 per year mark and I’m pretty stoked about that! Here’s my Dividend Portfolio if you’re curious.

 

Increase Net Worth by 50% (22% Increase YTD Currently)

In May, if my stocks weren’t doing so well my net worth gain would actually be behind what it should be to meet my 50% goal. This is mainly due to getting my real estate license and paying all the fees associated with that. But either way, my net worth has increased 22% so far this year! I should be right on track to reach my goal of a 50% increase for the year. These large gains are mostly due to getting my new job last year and having the ability to save much more money. My net worth is heavily weighted on the stock market so this number is constantly changing from day to day.

 

Make $10,000 From Real Estate (0%)

As I just got my real estate license this month I decided I would make a goal for myself. Real estate is completely commission based for me and as much as I would love to say I sold a house already that would be a lie. But on the plus side I did show my first house yesterday and I’m having fun with it so far.

 

Max out Roth IRA for 2016 (100%)

At the end of May, I’m just over a 10% return YTD. I maxed out my Roth IRA early this year when the market was down. I’m really pleased with how well my Roth has done this year.

 

Save Another $15,000 in My Bank Account (30% YTD Goal)

I’ve saved about $4,500 so far this year. My real estate expenses hit this goal hard this month. I had to take quite a bit of money out of the bank to pay for my license and other dues. I’m definitely pretty far behind on this goal for the year. I’m going to need to make some money from real estate if this goal is going to be achieved.

 

Cash Flow

Total Income

$2,877.60

 

Day-Job

I get paid bi-weekly from my day-job and it worked out that we got paid three times in May so that was nice. I ended up making $2,832 in May.

 

Dividends

I received $45.60 in dividends in May.

 

Real Estate

This one is a definite work in progress. I made $0.00 from real estate in May.

 

Miscellaneous Income

No side jobs for me this month. I made $0.00 in misc. income in May.

 

Expenses

My expenses for May were about $2,000. I will get more detailed into expenses in the months to come.

 

Saving

For May I managed to save $877.60. Not bad considering the real estate expenses.

 

May turned out to be a pretty good month for me. I’m right on track for all my 2016 goals besides saving an extra $15,000 in my bank account and I still think I may be able to swing that one. With the increase in the stock market this month my net worth managed to increase as well even though I was faced with large expenses this month. I expect bigger things to come in June!

How was your May?

2016 Goals

I have high hopes for 2016. This is the first full year I’ll be working a full time job. In the past I’ve worked 40 hours a week all year but as “part-time” status. My pay is significantly higher and this opens up lots of possibilities for me as far as investing and saving money. This will be the year when my savings and my portfolio really take off.

 

Financial Goals

Increase annual dividend to $1,200.

I started playing around with investing in November 2015. I was very hesitant and worried about losing my money. I ended up making a whopping $0.25 from dividends in 2015. I’ve made a big change in the way I invest. I’ve made a commitment to dividends. I feel increasing my dividends to $1,200 per year is attainable this year. I’m investing $200 per week at years start and trying to average a 4% yield. Here’s my current Dividend Portfolio.

Increase Net Worth by 50%

I don’t have a huge net worth and with the new full time job I feel this is also very doable. I count my bank accounts, stock portfolio and my Roth IRA towards my net worth. As a large majority of my net worth is in the stock market (roughly 60%) it changes at least a little bit every day.

Max Out Roth IRA For 2016

I started my Roth IRA in October last year and maxed 2015 out as soon as I created it. In January 2016 I maxed out 2016 as I felt the market was still low and it was a good time to buy. My Roth IRA has done very well thus far and if anyone is interested in what I hold in my Roth I will talk about that in another post.

Save Another $15,000 In My Bank Account

I feel that it’s very important to have cash around. Stocks are almost as liquid but I don’t want to have to pull money from my stocks. They’re there to grow not to be a cash reserve or to be bought and sold all the time. Anyway, I feel that another $15,000 should be attainable. This goal is definitely going to be tough with all the other financial goals I have but that’s just extra motivation for me. The difference in making this goal happen or not is to control my spending.

Make $10,000 From Real Estate

I just got my real estate license in early May 2016. I’m setting a high goal for myself to make $10,000. I have no idea how attainable this will be for me. I’m really excited to get things going with it but I don’t have nearly as much time to commit to it as I’d like to. I guess time will tell!

 

This is my short list of financial goals for 2016. Though the list is short, I set high goals for myself. I don’t set easily attainable goals. What’s a goal if you don’t have to work to achieve it? I’m very excited to see how real estate goes for me this year. I’ve recently been looking for homes to flip so we’ll see how that goes.

What are some of your goals for 2016?

 

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The main focus of this blog is to take you with you me on my journey to early retirement. I plan to live mostly off my dividend income. But I also plan on owning income property. I certainly do not limit myself to those two things. I will dabble in many things through out my journey to early retirement and whatever makes sense at the time I’ll run with!

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