Growth Update: August 2014
I found myself constantly busy during the last half of August. It was the good type of busy. I took my girlfriend to a private cabin I rented in a forest on top of a mountain for a romantic getaway. That weekend I took part in a huge life milestone when I proposed to her, and she said yes! She’s an amazing and beautiful individual who shares my vision of frugality and financial independence. I’m a very lucky guy. The weekend after our getaway, my parents flew in from the Midwest to spend some quality time with us. Living in Los Angeles, I don’t get to see them nearly as often as I’d like to. It was a wonderful few weeks, and time away from the daily grind at work added fuel to my desire to achieve financial independence as soon as possible. So I will continue to invest money into companies that grow their dividends each year and will one day pay all of my expenses with this income.
I added to positions in Aflac and BP in August. It turns out I was early on my purchase of BP as it fell over 6% in a single day today and will likely fall steeper in the coming weeks. This was actually a great lesson for me going forward. I was well versed in all of the risk of this company and its legal battles, but I didn’t specifically look at the date of the hearing announcement of the Gulf oil spill. While it seemed some of the risk was priced in when I added to my position, I could have easily waited a few weeks on this purchase to see what would happen with the ruling, knowing that the judge is clearly trying to make an example out of BP. Of course one could argue that trying to predict such events and price movements is speculation, and I shouldn’t linger on such things. Unfortunately, I still can’t help but feel like I missed a part of my research on this one. It’s a solid reminder that I’m very new to investing, and if I’m going to make purchases every two weeks, I need to get better at doing my homework. Ultimately, I’m happy to sit back for a while and collect dividends while BP appeals today’s decision that it was “Grossly Negligent” in the spill. BP will now have to prepare to pay up to $18 billion in fines from the ruling when the dust settles in a few years.
Since I smashed my 2014 new capital invested goal last month, I’ve revised the goal by doubling it. I’m way further ahead of where I expected I’d be when we started this year, and it feels absolutely amazing. With my two purchases, I’ve now invested $22,891.16 this year so far.
As the market regained losses from July, my portfolio gained steam right along with it. It witnessed an increase of 13.78% from July’s $25,365.07 to $28,859.80. Last year at this time, my total portfolio was only worth $1,175, and I still wouldn’t have been able to make another small purchase until October.
Dividend payouts are my favorite part of these updates, and August didn’t disappoint. It’s hard for me to believe I’ve made it to $81.75 in passive income this fast into my journey. This is an increase of 18.82% over last quarter in May when I made $68.80. Year over year I saw an increase of 510.99% when I received only my second month of dividends and made $13.38.
Altria gave me my only dividend increase this month.
My work situation continues to go well for my 2014 months worked goal.
I’m excited for September as I’ve already made a purchase that I’ll be posting about soon. It’s a new company for me and the first in its sector. I hope everyone had a great month and cheers to passive income and investing!
How was your August? Are you beating your goals?