Another month has come and gone. I continue to make progress on my financial goals. I continue to keep my spending in check and continue to save. It was a good month for dividends but I took a hit on options trading. My debt continues to decrease. The retirement accounts continue to grow in value. Let’s take a look at the details for March 2021.
Spending was kept in check this month. My savings is up significantly compared to last month especially after getting the latest stimulus check. My savings is a little bit higher than I want right now. I increased my savings due to a slow down in production at work due to the global semi-conductor shortage. While production at work is still slow, my company seems to be managing the situation well. Next month I will probably draw down some of my savings to pay off some debt.
This month I received $335.18 in dividends. In March 2020 I received $1.84 in dividends. March 2020 was when the funds from my previous employer rolled over into my IRA. This is when I bought my first ever individual stock and began my journey as a dividend investor. Over the past year I have enjoyed watching my the dividends grow. It will be interesting to see the year over year growth in the amount of dividends I receive. The total dividends received so far this year is $860.62.
Options trading was interesting this month to say the least. I took some losses on some options trades on SCHD and MO when the stocks ran up past the strike price and I rolled the options out to a future date. I was still able to make a profit of $182.56 in option premium this month. While I am not thrilled with the losses I took, it was a learning experience and I was able to mitigate some of the losses. I did not trade options last March. The total options premium received so far this year is $917.21.
Combined I received $517.74 from dividends and options premium this month. This is well below my goal of $1,000 per month. For the year, I am $1,222.17 behind my goal. I will continue to track this throughout the rest of the year even though it seems very unlikely that I will be able to achieve this goal. The total combined income for the year is $1,777.83.
My total debt went down by $1,250.89 in March. This is well below below my goal of $2,083 per month. For the year I am $474.22 behind my goal. I am not concerned about being behind my goal. I am sitting on some savings which I plan to draw down next month to pay off debt. I should be back on track next month to achieve my goal of paying down $25,000 in debt this year.
The overall value of the Traditional IRA was up a little over $6,000 from last month. Last March the account was around $72,000. The year over year growth has been amazing since I only contribute $35 a month to this account. The estimated annual income continues to grow at a good clip. Last month the estimated annual income was $3,605. This month estimated annual income grew to $3,688. Seeing the estimated annual income grow every month keeps me motivated to continue with my plan.
The Roth IRA continues to grow. Last month the account balance was $259. This month it is up to $348. Most of the gains this month came from $75 of contributions. The estimated annual income also to grow from $11 last month to $15 this month. I really need to fund this account more but I am trying to balance paying off debt while saving for retirement.
The 401k continues to grow although the growth is mostly from contributions. The account is up about $363 over last month. This account is passive. The contributions automatically come out of my paycheck. I have set the allocations for the various funds that I invest in and do little else to this account.
The taxable growth account through M1 Finance took a pretty big hit this month finishing down 7.88%. The overall value is slightly higher due to contributions. If you would like to see the holdings in this account you can here: https://m1.finance/MvvbI-KvPEe6 . Even though this account is down considerably I plan to stay the course. I have not sold any of my positions in this account. I did adjust some of the allocations this month. I continue to dollar cost average into this account each month.
Progress towards financial freedom continues. This month my net worth increased by more than $8,000 to over $32,000. This is a drastic improvement over last year when my net worth was around -$38,500. At times the progress can seem slow, but I am actually much farther along than I expected to be at this time in my journey. I continue to stick to my plan and the results continue to exceed my expectations.
*Disclaimer – I am not a financial professional. The information shared here should not be considered financial advice. I am just a factory worker sharing my experience as I strive to achieve financial freedom. Before investing or making any financial decision do your own research and due diligence and consider seeking the advice of a financial and/or tax professional.
Here are some of the businesses that I use that I thought some of you might be interested in.
I use the free version on trackyourdividends.com. This is a quick an easy way for me to track my estimated annual income from dividends.
Lolli has a variety of stores that it is affiliated with and offers rewards for shopping at these stores. I use Lolli when I shop on Chewy and I get bitcoin as a reward. If you are interested in Lolli and want to help support the blog here is my referral link: https://www.lolli.com/share/XP7gxDgqC4
I use M1 Finance for my taxable growth account. M1 Finance offers promotions for signing up. These promotions vary from time to time but is usually a $10 bonus. If you are interested M1 Finance and want to support the blog here is my referral link: https://m1.finance/ktIiFeOI5zDr
If you use the referral links listed above I could receive compensation. Please take the time to read the terms and conditions before signing up.