Every month, I will post my personal net worth. With the usual bi-weekly paychecks, I was able to buy 3 new positions, in such a way where I now evenly get dividend payouts 7x a month! 7 extra paychecks a month.. What a blessing.. Albeit the payouts are still small. The machine with the new additions, adds to my old positions, and dividend reinvestments is now spitting out roughly 27$/month, 81$/quarter & 326$/year. 100% increase from the 13$/month, 39$/quarter & 139$/year when I first started. In only two short months, and between 1K-2K/month to invest with, progress is being made in such a great way. I can feel it!!
Now comes the bad news… I borrowed 50% of my 401-K. Now, you may be asking why? Well, there is a reason. I was thinking of purchasing a condo, but I am now putting that off for a few more months to build up a solid cash reserve (20K is the goal) for down payment and closing costs. I initially borrowed from my 401-K because in my mind the market was already close to all time highs so I thought this would be me selling at the high’s and taking out this type of loan is basically paying myself back with interest over time. A week later, the Brexit event occurred and I thought “man I really made a great move” with the market getting crushed for two days. Now, the markets have rebounded insanely and are ready to go to all time highs. My luck lol oh well. It’s a 5 year plan and I can pay back the loan in full when I have the cash available. That was my logic behind it, I would not recommend anyone do it because it will deter from your retirement goals. I did it because the 401-K was under $10K anyways so it’s not much in the long term, still will effect my retirement nevertheless.
I was able to save about 40% of my total net income for the month which I find accomplishing. I bring lunch to work everyday because quite frankly Manhattan seems to have its own exchange rate with the inflated prices all over the place lol. It also is much healthier to bring in your own food to work. Health then Wealth always. I am holding cash for now and waiting for a pullback to purchase more. Right now, all my prospective picks are in the bullish territory so it’s tough to jump in when prices were so much lower only just a month ago.
This journey feels liberating to say the least.
We’ll see what July brings!