Financial Independence Progress Report for June 2016

June is finally done! It is one of the two biggest months of the year for dividends. And it did not disappoint me 🙂 Lets look at June’s numbers. In a later post, I will do my quarterly review for the 2nd quarter and see how I am doing for the yearly goals.

07/02/2016
Emergency Fund ($72K)$60K 100.0%
College Fund (80K) 42% 42.53%
Passive Income (2015 vs 2016) $1038.14 (06/2015) $1741.69 (06/2016)
Retirement Fund ($900K) 61.31% 61.64%
Roof for our Family($750K) 00.00%
Medical Fund 00.00%
Life Insurance Done (term life insurance payments initiated)

Main Takeaways this month

  • Dollar Cost Averaging
    • In May, I reduced my Emergency fund and moved some of it into a new Dividend mutual fund (VDAIX). I was keeping the remaining money as a Cash Fund to invest on the next market downturn….and boy…did Brexit provide that for me.
    • Brexit turned out to be a boon for me. The market dropped on two consecutive days in a big way….DOW dropped by 600 points and 300 points on consecutive days. Thanks to the people of United Kingdom for this!
    • I had a couple thousand dollars left over from the emergency fund makeover and pushed all the money (and some) into my passive income streams. Yeah for dollar cost averaging….this cash infusion will make its presence felt over the years via dividend compounding.
  • Cash Fund
    • I started a cash fund in May since I anticipated a few days of down market towards the end of June…with the interest rate drama, Britain’s exit from Euro decision, etc.
    • I used the fund completely and now I am officially out of cash…I mean I am so out of cash that I had to borrow money from my wife to pay the bills for this month. I am never going to hear the end of this for sure 🙂
    • So, for the next 3-4 months at least, I will have to run a very very tight ship 😦 Hey, the sacrifices will pay off in the long run right? And the dividends coming in will hopefully keep me motivated and help me ride out the low-cash situations.
  • Passive Income Stream
    • Passive Income for June 2016 recaptured the increase in dividends over the same period last year. June 2015 had a dividend income of $278.52 and June 2016 has a dividend income of $378.08 …a decent year-over-year increase.
    • My goal is to reach $750 pm by end of this year…considering we are at the half way mark for the year and my monthly dividends are close to $400 pm, I can see now that I am going to reach it….eagerly waiting for the day when this event happens!
Advertisements

6 thoughts on “Financial Independence Progress Report for June 2016

  1. Really nice job with your progress this month, all your goals are closer to your target 🙂 That’s a pretty good update. Congrats on your dollar averaging, I’m glad you saw the positives of Brexit.

    Tristan

    Like

    • Thanks for dropping by Tristan. And thanks for the kind words. Every dollar more in passive income is one dollar closer to Financial Independence and this is what powers me every day. Best of luck in your FI journey as well!

      Like

    • Thanks for dropping by MrSlmm. Yes…it does look like $750 is reachable this year with a high probability. My intermediate goal is to reach $1000 pm in average dividends. My final goal is, believe it or not, $4000 pm. This was a goal created in all innocence when I just started FI. I realized later how big of a step that is….I wrote about it here: https://humblefi.com/2015/01/18/how-long-does-it-take-to-get-to-50000-per-year-in-dividends/. But, I chug along hey…lets see how close I can get to it in appx 8 more years.

      You are way ahead of me on this front looks like…I will follow you from now on and see if I can gather any tips that apply to me. Best of luck on your FIRE journey!

      Like

    • Thanks for dropping by! And trust me, you have not missed the boat by any means….just by a few months. In a few months, the market will be down to the same level. Keep your cash ready!

      Best of luck!

      Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s