The markets trended down for most of the month of January before a slight up tick at the end of the month. Despite the up tick at the end of the month, it was still a down month for the S&P 500 and NASDAQ. This caused my accounts to be down this month. Even with the volatility in the market this month I continued to follow my plan and stay invested. Let’s check the details for my month!
Spending/Savings
Spending this month was kept inline with the budget. The emergency fund continues to remain at about two months worth of expenses. My savings rate for this month was around 30% which is ahead of my goal of 25% for the year.
Dividends/Options/Interest
This month a total of $253.61 in dividends was received. This is an increase of $56.79 over January 2021. This is a 28.85% increase year over year. For the year, I have received $253.61 in dividends. This is 6.3% toward my goal of $4,000 in dividends this year. January is one of my low months for dividends so I expect better progress in the next couple of months.
This was a good month for options premium. In total, $770.48 in options premium was received this month. This blows away January 2021 when I received $395.95 in options premium. For the year, I have collected $770.48 in options premium. This is 12.8% toward my goal of $6,000 in options premium this year.
Income from interest this month totaled $7.66. This is down from January 2021 when I received $12.19 in interest. For the year, I have collected $7.66 in interest.
The total amount received from dividends, options premium and interest was $1,031.75 this month. This marks the first time I have received more $1,000 in one month. Last January I received a combined $604.96. For the year, I have received $1,031.75 in combined income.
Debt
This month I was able to pay down $1,009.93 in debt. While paying down debt is not my main focus this year, the goal is still to have less than $100,000 of debt at the end of the year. To do that, I would need to pay down an average of about $1,650 in debt per month so I am behind on this goal.
Traditional IRA
The Traditional IRA finished the month at about $122,476. This is down $2,223 from the previous month. Year over year, the account is up $20,229 from January 2021. The projected annual dividend income (PADI) is about $15 over the previous month to $3,910. This was calculated before the announced AT&T dividend cut.
Roth IRA
The Roth IRA finished this month at about $2,266. This is up about $179 over the previous month. Year over year, this account is up $2,044 from January 2021. The PADI is up about $28 from the previous month to $112. When contributions of $300 are factored in, the account was down for the month.
401k
The 401k finished the month at about $10,684 which is up about $147 over the previous month. Year over year, this account is up about $5,243 from January 2021. When the contributions of about $528 are factored in, the account is down for the month.
Taxable Brokerage Account
The taxable brokerage account finished the month at about $337. This is down $18 from the previous month even with the monthly contribution of $25. Year over year, this account is up $198 from January 2021.
Cryptocurrency
The little bit of bitcoin that I own finished the month at about $18. This is down about $5 from the previous month.
Total Investments
The total amount invested is now about $135,781. This is down $1,920 from the previous month. Year over year, the total amount invested is up $27,732 from January of 2021.
Net Worth
My net worth is now about $76,420. This is down $592 from the previous month. Year over year, my net worth has grown by $57,294 since January 2021.
Conclusion
Even with the markets and my accounts being down this month I feel I was still able to make progress. I was able to add to some positions at a better value since the share prices dropped. The down market provides me with opportunity to accumulate more shares at a better price. I am encouraged by the progress I am making in trading options. Since I started investing late I will probably never have a seven figure retirement account. Despite this, I believe I will be able to generate enough cash flow from dividends and options premium to live well in retirement with a smaller account. That’s it for this month. Thanks for following along!
On a side note, I have added a Recommended Resources in the menu. It currently is a work in progress. It will contain blogs and YouTube channels that I enjoy as well as some sites that I use. I hope you take the time to check it out.
*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 or 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.
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. Who doesn’t want free bitcoin! 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. At the time of writing this post, the promotion is for $50. These promotions vary from time to time but is usually a $10 bonus. If you are interested in M1 Finance and want to support the blog here is my referral link: https://m1.finance/ktIiFeOI5zDr
Varo Bank is one of the banks that I use. From time to time the bank will run promotions. Currently, you can earn up to 3% on your savings with Varo, if you meet certain requirements. If you are interested in checking it out, here is my referral link: https://bank.varomoney.com/signup?r=William360
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.
Sounds like you had a very satisfying month and you broke the 4 digit payout.
Yes, it was a very satisfying month. My plan seems to be working well and that is very promising for the future.
Great month for such poor market conditions. Well done!
Thanks! Sticking to my plan seems to be working, even in trying market conditions.
This is nice you share this info with you readers. Thank you!
Thank you for following along on my journey Teodor! I share this info to show that an average person can invest and make a better future for themselves.