|A Year Ago|
The goal: Work free income with raises that exceed cost of living. I put $1000 into a stock, and I get (starting) $50 a year for the rest of my life, with that $50 increasing every year by 4-30%. So that, when I retire, I receive income that won't count against social security income, and just have to maintain the stock by making sure the dividend isn't cut. If it is cut, I pull out and invest into another.
This way I obtain independence and freedom, and can pursue other things, such as setting up my children with income from dividends when I pass on, I won't have to depend on social security, have control over my assets (which a 401k won't allow me to do), and pursue a ministry and philanthropy.
So far, I am 2 years in, have almost $100k in assets (by reinvesting dividends and NOT investing in my 401k) and am making almost $5k a year. The goal is 30-50k, of course, but the snowball is getting bigger and moving faster! In the beginning I could only pay my water bill, now I can pay all my utilities plus more (if I wanted to!). Instead, I put more and more every month into the dividend stocks, which makes me more and more money. When I read that dividend investing, while not sexy, is 99% successful, I didn't believe it, but now I do. Know that if I lost my job today, I would be making $400 a month doing nothing, adds some security which just grows and grows.
My investing strategy is gauged different than a younger person's, as I am middle-aged and need to be a bit more risky, but I still am quite conservative compared to my co-worker who is about 10+ years older and chases yield a bit more. I may discuss the finer points in a future post, but you can figure it out studying my past blogs.
Raising two kids gets a little complicated, and this year expenses for school were a tad steep. Coupled with current debt for remodeling, our FCF (free cash flow) is getting a workout. If it wasn't for the free cash flow, and ability to move things around, we couldn't make ends meet. However, the FCF is there, and savings and retirement were impacted little if at all.
Purchases were down for July, since there wasn't a lot of downward action in the market for most of the month. In fact, there was a lot of growth for my stocks. It wasn't until August 1st (today) that I backed up the truck to buy several stocks that went on sale after the double whammy of a rate cut, followed by additional presidential tariffs.
Dividends Received: $113.28 (the low paying month)