Thursday, November 16, 2017

MIND YOUR OWN BUSINESS.

In one of Robert Kyosaki's Rich Dad books, I remember him saying, "Mind your own business" by which he meant you should concentrate your efforts on building an income for yourself aside from work.  At the time, I thought this a remarkably simple yet profound statement.  Think about how much time we spend in life working hard to make other people rich.  Shouldn't we pay more attention to making ourselves wealthier?  

Recently I was reminded of this advice when I was passed over for a promotion at work.  I was very disappointed, since I've been working hard for the past three years and thought I'd be the logical choice for the job.  Well I didn't get it and I've gotten over the ordeal, but it did get me thinking about priorities.  I realized I'd become lax in "minding my own business."  

As I mentioned earlier, I've worked hard and invested a lot of effort over the past three years at my job, while not spending much time on my investments.  During that same period of time, my earned income increase a very modest 6%, while my investment income grew by a whopping 300%!  Just think about that a minute.  With a great deal of hard work, my earned income only went up 6%, while with very little effort, my investment income increased by 300%.  A 300% increase is fantastic, but how much more could it have been had I been "minding my own business" or putting as much effort into my investments as I put in at work?

So in a way I'm kind of glad I got passed over for the promotion because it frees up more time for me to work on building my investment portfolio.  Going forward, I'm very excited about my investment plans for 2018.  I've already created new spreadsheets for the upcoming year and identified additional investment opportunities which I think will boost income dramatically.  In the mean time I'm putting some of the money I earned on Swagbucks to use with the purchase of a stake in NLY.  I won't get my first dividend payment until January 2018, but I figure a new stream of income is a great way to kick off the new year.

Saturday, November 11, 2017

MULTIPLE INCOME STREAMS VS. MULTIPLE JOBS

In recent conversations with co-workers, I was amazed at how many of them have multiple jobs.  Several had both a full time job and a part time job, with some having as many as four jobs.  Times being what they are, I can see possibly having two jobs, but I think the wiser course would be to work one job and have multiple streams of income.  Dividend investors are well aware of the benefits of multiple streams of income.  As a dividend investor, I own a stake in a total of 35 different stocks, mutual funds and bond funds.  In addition to that, I do have a full time job and four internet side gigs, (not jobs per se but they do pay me a little income each month) for a total of 40 different sources of income.  

From these 40 income sources I receive a total of 530 payments per year!  Which means I get paid every .69 days, or almost twice per day for every day of the year!  Of course, I don't work every day of the year.  Most weeks I have two days off and I have two weeks paid vacation per year.  So with my two weeks vacation and two days off per week, I really only work 251 days per year (365 - (2 x 50) + 14 = 251.  Now if you consider that I only work an actual 251 days per year and divide that by 530 payments, I really get paid every .47 days that I work, or more than twice per day!

No matter how good a worker you are, you could never manage to work 40 jobs, but it's quite easy to have 40 sources of income.  If you have a job and invest some of your hard earned money in dividend paying stocks or funds, you could easily amass 40 sources of income in just a few years and if you only have one job, like myself, when you quit working you'll still have at least 39 sources of income.  So I think it's probably better to concentrate your efforts on building multiple streams of income instead of working your life away at multiple jobs.        

Friday, November 3, 2017

THINGS ARE LOOKING UP FOR NOVEMBER

Big jump in the market today and in the overall value of my portfolio.  Especially a nice jump in my stake in QCOM on rumors of a takeover by Broadcom.  Whether it will or won't actually happen is quite another story.  They may face an uphill battle gaining approval from regulators in the U.S..  However, I plan to keep a close eye on the situation and see if I can find an exit point with a tidy little profit.

Otherwise things are going well.  In the two days from the 31st of last month and the 1st of this month, I collected a total of 24 dividend payments!  November is one of the lower income months, with only 35 dividends for the month.  However, it's followed by December with a whopping 48 dividends!  So I'm not losing any sleep over it.  Cash balances continue to grow as I collect selected dividend payments in cash.  Looking forward to my next stock purchase with Swagbucks cash and adding new quarterly income there.  

Been working extra hours at my job, so I'll be concentrating on retiring more old debt and saving on monthly interest charges.  Should also be able to set aside a little extra to boost holdings in some of my current stocks.  I'll definitely add any additional cash to one of the monthly dividend stocks.  Haven't really decided which one yet, but I want any extra cash to create more monthly cash flow.  

Also made a little extra cash with a yard sale, not to mention getting rid of some of the clutter around my house.  Sold one of my old coats for $3, which isn't much, but since I bought it at a yard sale 3 years ago for $1, I was pretty happy about that.  The rest of the stuff I've sold are things I no longer have any use for and cannot hope to recover what I paid for them, but whatever money I recover is a bonus as far as I'm concerned.  I'm pretty sure I got my money's worth out of them in use, so if I can sell them for a few dollars, I'm happy.  

Friday, October 27, 2017

OCTOBER 2017 HAS NOT BEEN KIND TO MY FINANCES

The total value of my investment portfolio is down and a series of necessary auto repairs and maintenance have left me anxious to see the end of October 2017.  While I'm not at all in a panic, I will have to be very careful with my finances going in to November.  Got to get back on track, build up my reserves and add to my investments.

O.K., enough of the negativity.  One thing I am excited about, the recent drop in prices has my reinvested dividends purchasing more shares!  If the market languishes, I should see my average price paid per share decline significantly.  Setting the stage for even better returns once the market takes off again.  It also makes my cash purchases go a lot further.  So a down market is not all bad news.  It's actually good news to me, since I'm still in the purchasing phase.  As long as the companies and funds I'm invested in don't start cutting dividends, it could turn out to be a great thing.

I've figured out how to double my monthly income from Swagbucks and am looking forward to putting that money to work with the purchase of NLY.  This will give me 475 dividend payments per year in total, with 28 of those dividend payments coming from money earned through Swagbucks.  I'd like to buy one more monthly dividend stock with Swagbucks cash and use any money earned afterwards to build my stakes in those four stocks.  A few years from now, this should turn into a nice tidy monthly income.

I have long lamented being single and not being a 2 income household.  However, it occurred to me recently that I'm actually a 45 income family.  That is, I actually have 45 sources of income including stocks, funds, my job, interest bearing accounts and cash back accounts.  While my job is still my largest single source of income, the income I receive from outside my job is growing rapidly.  So I just need to stick to the plan and keep doing what I've been doing, because I'm obviously headed in the right direction.

Tuesday, October 17, 2017

OCTOBER UPDATE

It's been a busy month so far and I'm afraid I've been a bit lax in posting.  Have already collected a lot of dividend payments for the month, with several more to go.  Little too early to tell if October will set any records, but should still have a good showing non the less.

Had to get some repairs done on my car, so it's taken up a lot of cash I'd otherwise have invested.  Still gained some ground through 401k contributions and reinvested dividends.  Even when I have no additional cash to invest, it's comforting to know that my investments continue to grow automatically.

Just read an interesting article about the CFO of PSEC making a huge investment in his company's shares.  It's that kind of inside trading that makes me think I'm on the right track by purchasing shares.  Whatever happens price wise, I'll collect a nice tidy dividend every month.  

Looks like my Swagbucks income will double this month and should be even better next month.  The more I learn about ways to earn on their site, the easier it becomes to make more money in less time.  Of course I'll be investing this cash in dividend stocks to keep the money growing.  It's turning out to be a great way to build up my portfolio without having to have a second job.  

My biggest revelation this month was when I realized I'm already living off what I expect to earn each month in retirement.  Meaning, if you subtract debt payments which will be paid off by the time I retire, what I have left each month now is about the same or a little less than I collect each month when I retire.  Given that I have 5 years to build up my portfolio, thus increasing income in retirement, I may end up better off than I am now.  So that takes a lot of the worry out of retirement.

Friday, September 29, 2017

NLY WILL BE NEXT STOCK PURCHASE WITH MONEY FROM SWAGBUCKS

After a few hours of research, I've decided to make NLY my next stock purchased with money earned on Swagbucks.  Although this REIT pays quarterly instead of monthly, it has a 9.62% yield on current price of $12.19 per share.  It also has a very low P/E of 4.22 with sufficient earnings to more than cover their quarterly dividend of 30 cents per share.  Since REITs throw off a lot of income as a rule, it will make a good addition to my ROTH IRA where the income will be tax free.  I should be able to easily earn enough on Swagbucks to make my initial purchase before the ex. date of 12/28 to collect my first dividend in January 2018.

SEPTEMBER 2017 SETS NEW RECORD FOR DIVIDEND INCOME!

The month of September set a new record for dividend income, beating out the previous record set in July of this year, by a little over 2%!  Total number of shares owned increased by over 2% from the end of August, through reinvested dividends and additional cash purchases.  It's been 5 years since I started rebuilding my investment portfolio after suffering a couple of heart attacks and spending all my savings on medical bills.  I continue to be amazed at how well it's all going!  At the current rate of accretion, I should surpass the value of my old portfolio in less than two years!  Dividend income will surpass income from the old portfolio by the end of next year.  Couldn't ask for anything better than that.

For the end of the month I collected a whopping 15 dividend payments!  What's even more exciting is, the first of October it happens all over again!  Talk about keeping a person motivated.  The whole process is really starting to snowball now, with monthly dividend income up over 35% since January of this year!  I sometimes think I should try something different to maybe gain a little edge, but at this point, I believe I'm better off sticking with my original plan.  You really can't argue with the results.  I set out to build a portfolio that would throw off a bunch of cash each month and that's exactly what has happened.  So I'm going to keep the ball rolling.