A blog about dividend investing and financial independence for a person supporting a 7 person family on one income. My goal is to be retired at age 55 to pursue other passions in life and rely on a passive income stream generated from dividends.
Sunday, March 13, 2016
February 2016 Update
I can never say I had
a normal month with my budget. It has
been over a year since we had to do any work on my wife's 10 year old
minivan. Time and the salt of winter
finally caught up and we had to do some repairs. On the bright side the van broke down on a
street and not the highway. With that
said the repairs exceeded what I pay on the house. Given the age this is accounted for in the
budget at $444 per month for things like repairs and gas.
Regarding the rest of
the budget we went over in the "Wants" category by $66 as I purchased
some Groupons to use later in the year for some events we like to go see. Also food went over by $242.
We usually go shopping on the weekend for the next week so the last
weekend in February was for food for the first week in March. It all evens out in the end since January was
under budget in this category.
Last but never least
was the budget category of childcare.
This is the amount of money I spend on things like diapers, school
activities and clothes. It was $56 over
budget this month from a "letterman" type jacket I bought for my
daughter. She helps out with the baby
and watches the kids all for free so I thought this would be a nice thank you
gift for her.
New this year are some savings goals. If I stay on
track I should be able to contribute to all of my goals. They are my Christmas/Holiday fund, Emergency
Fund, and Vacation fund. Each fund I
figured out what I need to save for it and divided by twelve months. So each has a monthly target. With the van repair I could only
contribute to two out of the 3 funds.
My next fund to add is
investing. Not sure why I did not factor
that into my overall budget. I may have
to revise the 2016 budget and get that in and see if I can contribute to that
goal regularly. I have been purchasing
some stocks but the funds come from savings not from my monthly income.
Overall, even with the
auto repair, we came in under budget and we saved 9%!
Spring is right around the corner so with diligence we will see if the
savings will continue.
On the up side I
purchased 25 shares of ADM. On the down
side I received my last dividends from KMI as I sold what I had as a result of
the dividend cut. Somehow I messed up my
Excel online chart and now my years show up as Series 1…Series x. I will have to find some time to fix that
while maintaining the same embedded link.
stocks were dividends from T, PG and CAT.
They are all above 75% payout ratio so I will not be adding to these
positions until they can get there cash flow in a better position. I know other bloggers have been talking about
CAT lately but it does seem risky at this point in time.
In general it was a
YOY increase vs. last February so I am happy with the progress. I hope your February saw you one step close
to financial freedom.