Dividend Diligence

Total Net Worth (As of 6/24/2012)

2012-06-24T21:18:00.001-07:00

401k                              - $35,248
ROTH IRA (Sharebuilder) - $14,981
Sharebuilder Account      - $88,230
Checking (ING Direct) - $6,023
Checking (Employer)      - $1,047
Individual Stocks (DRIP) - $33,535
----------------------------------------------------
Total                           $179,064

I will be speaking more in-depth about each position, but for now, here is my total net worth of all my assets (excluding my car - which does not produce any income).

Monthly Expenses

2012-06-21T22:21:00.004-07:00

Here lies my monthly expense list. I am always searching for ways to lower my monthly expenses. Of course, some are easier to slash than others. For instance, it is more difficult to reduce your monthly rent (the further you are from the lease end-date) than it is you grocery bill.

This is a fairly good approximation of what I spend per month. The list is open for scrutinizing, and here are a few areas I can definitely improve upon:

Rent - Rent is considerably higher in the Pacific Northwest than the average U.S. locality. Still, 30% of my apartment remains vacant (I have a whole "living" area comprising 150 sq. ft. that goes mostly unused). My next apartment will either be a studio efficiency or a very small 1 bedroom apartment.
Groceries - Make no mistake, I eat clean but very well. My substantial protein needs require a fair bit of chicken, fish and lean ground beef - which is not inexpensive. Thus, I cringe during my bi-weekly visits to Costco; even though I realize most of the items are purchased at a substantial cost savings.

I plan on posting a detailed monthly expense report for all to see. That way it can keep me honest on my spending habits and provide a baseline for your budget as well. I bank with ING Direct, which like all banks, gives you the ability to download your transactions over a certain period of time. I decided to track my spending over the past year and I was shocked at where my money was going (hmm.. topic for another post?). This forced me to think harder every time I pulled my debit card out to swipe. It seriously does change your spending behavior. An added benefit of banking with ING Direct is a nifty little setting that emails you every time you make a transaction with your debit card. That way, you have another method of tracking spending, all at the convenience of your fingertips. I encourage you to give it a try!

The Journey of a Million Dollars Begins with a Single George

2012-06-21T21:26:00.000-07:00

Confucius once said:

Our greatest glory is not in never falling, but in rising every time we fall

I have learned this lesson the hard way. For years I had invested in the stock market without direction, buying into the next hot stock only to be burned by its inevitable downward tumble. After each second-degree burn to my portfolio, I would lick my wounds and soldier right on. It wasn't until after scouring the internet for the latest hot-trending stock that I came across an article on the power of reinvesting dividends. Suddently, everything fell into place and I developed a plan for action. "By George", I said, "I think I've got it!" No, this won't be a lesson on the power of compounding interest (I'll save that for later); rather it opened up my eyes to a whole new world of investing... one in which I could (hopefully) closely match market returns while generating a passive stream of income.

It has been a long and arduous journey, from the DRIP of the first few pennies to the heavy hitting of my monthly dividends/premiums. I am well north of six-figures now and enjoy watching my dividends and other income streams compound. I feel like my portfolio is steam rollin'! But there is still lots to do and this is where this blog (and YOU!) come into play: sharing my journey on the path to financial independence. So what are you waiting for? The ship has sailed but its not too late to climb aboard!