Thursday, June 23, 2016

May 2016 FrugalMaster Results

May was mostly quiet here in the DFG household.  My daughter was baptized and we celebrated that.  My older daughter had a birthday slumber party.  That is always interesting to see how teenage girls act these days.  They were all good kids and even went to bed at a reasonable hour.  Even on the finance side it was mostly quiet.  I will write about some of changes in another article that in the long run will benefit my family and I.  Now let's get on with the show and see if I came out ahead this month.

Income
I posted my dividend income already.  It was lower compared to last year due to some changes and dividend cuts.  Nevertheless it was still income I did not have to work for.

On my paycheck side it was steady Eddy.  The only difference was I started my investment in my company's employee stock purchase program.  It is a great deal as long as you hold the stocks long enough to avoid short term capital gains taxes. 

First they take out a percentage of your income from each paycheck.  At the end of a fixed period of time they take your money and buy company stock at a 15% discount.  The best part is they take the lower of the 2 stock prices that are measured at the start and end of this time period.

For example, May 1st starts the period and it ends on August 30th.  If the stock on the 1st is $20/share and in August it ends at $40/share you get it for $20*.85=$17.00 per share.

You can't beat that so I am currently sinking 1% of my pay into this program and may increase it the next period if I think the company is heading in the right direction. 

Expenses
This month was pretty good.  I came in under budget on all my "needs" categories.  However my wants category was about double what I had budgeted.  First of all I didn't plan on (oops) the expenses related to the celebration from my daughter's baptism.  That was ~$150 dollar expense I categorized under wants.  Sure I could have just sent the family home with no lunch but it was the least I could do for having them travel the distance to our church.

Again I just want to point out to everyone that my house is still the largest monthly expense I have.  Especially when you factor in maintenance and utilities for the beast of a large home.  I am still working on aligning my simple lifestyle goal with my wife.  I hope once we are on the same page it will lead to a downsize in possessions and home but NOT the quality of life.



If we look at my cost of living over time versus my income the downward trend YOY continues.  I attribute that to my salary increase this year as well as continuing to life a frugal life.  My goal is to get that down to 50% one day.  I highly recommend to any of you who are just starting out in life to set that goal as well.  It will teach to live well within your means and allow you to invest early and often.



Summary
Well we did it.  Another month of savings.  Not as kick butt as last months but still double digits.  In the end it was a cool 28% saved.  Lower than last years's 36% mostly due to going over budget in my wants category and a decrease in taxable dividend income.  Still this makes 4/5 months of being in the green. 



With that said I was able to funnel the full amount into my emergency fund and vacation and holiday funds.  I didn't purchase any new stocks this month as I continue to build up my emergency fund.  At this time those 3 savings goals consume all free cash after my expenses.

Next month will be different though as I shift my money around.  This will cause me to have to pick some new companies to invest in which is always fun.  I look forward to sharing what I have done and what I will buy soon.

Until next time,
Dividend Family Guy.  

Wednesday, June 22, 2016

DFG June 2016 Stock Screen Top 10

I had set this up earlier this month and forgot to share my stock screen with you all for the lovely month of June.

If I had bought The Gap Inc. I would have been in a great position.  GPS is already up 12.6% for the month.   See what happens when you have a family and no time :-)

There are a couple other companies that are up this month as well and would be great investments for my portfolio if they continue to show up in my screen.

Meredith Corp. (MDP) is up 7.1 %
Bar Harbor Bankshares Inc (BHB) is up 9.6%
Cummins Inc. (CMI) is up 7.2%. 

Cummins keeps showing up on the screen so I keep increasing my position with them. 

Of course Best Buy was in the screen but has continued to deteriorate and is down 7.1% for the month.

Target makes the list and is pretty steady this month.  I see nothing wrong at this time that would stop me from buying more. 



 

I am long on ORI, CMI and TGT.

Anyone worried about TGT long term?  

Happy investing,
Dividend Family Guy

Thursday, June 16, 2016

May 2016 Dividends and Quick Account Update

This month was the start of some major changes in my banking systems.  I have decided to move all of my checking, savings and investment accounts to Bank Of America/Merrill Edge.  This was initiated after I realized I am not taking advantage of companies that provide you with free trades.  My balance with them will allow me to do 30 free trades a month.  The rewards program will allow me to purchase more often and take advantage of dollar cost averaging for companies I like.

With that said I am moving some assets and selling others, moving the cash, and then repurchasing in my new accounts.  Yes there were some fees but the gains from the sales far outweighed them.  So for the next couple of months I expect less dividends as I rebuild my portfolio.

Company
Held In
Dividend
Amount Received
Shares of life purchased
May Notes
T
IRA
1.92
53.42
1.3761

WGL
IRA
1.95
52.3
0.7704

NWN
IRA
1.87
50.65


OHI
IRA
1.26
24.08


N/A
IRA

4.43

Interest
N/A
IRA

-75

Transfer Fee
HRZN
Taxable
1.38
7.06


N/A
Taxable

0.45

Interest
F
Taxable
0.6
12


VZ
Taxable
2.26
1.33


PG
Taxable
2.678
0.91


CAT
Taxable
3.08
1.08


AHGP
Taxable
2.2
1.07



As you can see there wasn't much activity this month.  Some of my dividends like T and WGL were reinvested before my transfer began.  More shares purchased and more dividends are always a good sign.  The rest was just cash into the accounts which include my IRA and a taxable investment account.



Even with the fee of $75 dollars I still managed to come out with $133.78 of dividends for the month.  This is only slightly lower than the amount received same time last year.

Well I am off for my birthday weekend camping (which is a very affordable way to vacation when you have a large family.)  It was only $200 dollars for a cabin in one of our lovely state parks.  The kids are super pumped to go swimming and hiking and I am looking forward to being with them.  ALSO the kids will have no electronics the whole weekend.  Their brains are getting a needed rest from the digital world.

Happy investing and hope you have a good weekend,

Dividend Family Guy.

I am not affiliated in any way with Bank of America or Merrill Edge.