Saturday, September 3, 2016

Income & Expenses For August 2016

Since 2014, I have been tracking my monthly income and expenses. You can see a breakdown of every penny I earn and spend. For perspective, this budget is for a household of two in a small US city. By documenting my journey, I aim to demonstrate the feasibility of saving a significant portion of your income and provide some ideas and inspirations for your own budget.


Below is my income and expenses for August 2016. You can see all my monthly budgets here.
Aug 2016
Income
Wages$10,061.76
Dividends$1,300.95
Other Income$1,687.65
Total Income$13,050.36
Expense
Federal Tax$678.24
Federal Tax Pmt/(Refund)
FICA-SS$418.24
FICA-Medicare$97.81
Rent$450.00
Student loan repayment$161.17
Grocery$86.31
Gasoline$24.46
Car Insurance$133.72
Car Reg/Tax$32.00
Cell phone$12.88
Electric$26.82
Clothing/laundry$5.50
Total Expense$2,127.15
Ex-Tax Total Expense$932.86
Surplus/(Deficit)$10,923.21
Before Tax Saving Rate83.70%
After Tax Saving Rate92.13%

Income
Wages remain my primary source of income by far. 
Dividend income $1300.95 is up from last month, and is more than I need to cover my expenses.

Here is a chart of my dividend income by month for the past 13 months:
Total dividends for the trailing twelve months: $13,240.31, up 18% from $11,240.59 in August last year. 

Expense
Overall expense is higher this month due to payment of $133.72 for 6-mo car insurance renewal. This insurance premium is an 7.8% increase over $123.93 six months ago. O well, not much I can do about it, and I'm just glad it's still much lower than the national average.

Total expenses for the trailing twelve months: $9,697.71. 
Dividend to expense coverage ratio = 1.37, a slight decrease from last month.

Savings
My after tax saving rate was 92.13% for the month of August, which is around average for me. I expect to meet or exceed my 90% savings goal this year. 

Wednesday, August 31, 2016

Portfolio and Net Worth Update August 2016

The time has come for my monthly portfolio update. At the end of every month, I will update my portfolio and comment on any changes. I do that for accountability and also so you may glean some ideas on how I allocate my capital. You have the opportunity to learn from what I do well, so you can do the same, as well as what I do poorly, so you will not have to repeat my mistakes.


My transactions in August are listed as follows:

StockActionCostPrice per share% of Portfolio
AZOAdd$6,870.00$763.330.86%
UHSAdd$4,880.00$122.000.61%
GILDAdd$4,635.82$78.570.58%
ANNew Buy$2,519.00$49.390.32%
CTSHNew Buy$1,995.00$57.000.25%
DISAdd$1,600.00$95.930.20%
FISVNew Buy$1,539.00$102.600.19%
NVONew Buy$1,489.60$46.550.19%
HSICNew Buy$1,467.00$163.000.18%
RLAdd$1,450.00$94.850.18%
DHRNew Buy$1,288.00$80.500.16%
WLKNew Buy$1,012.00$44.000.13%
DEAdd$1,001.00$77.000.13%
FOXAdd$1,000.00$26.500.13%
CMPNew Buy$966.00$69.000.12%
NKEAdd$650.00$55.510.08%
VFCAdd$650.00$62.550.08%
SNYAdd$600.00$40.240.08%
DISCAAdd$500.00$26.340.06%
AFLAdd$200.00$72.500.03%
BRKBAdd$200.00$143.420.03%
EMRAdd$200.00$54.200.03%
KOAdd$200.00$44.010.03%
NVSAdd$200.00$82.100.03%
WMTAdd$200.00$72.880.03%
XOMAdd$200.00$87.870.03%
HCNAdd$174.76$77.490.02%
MCDAdd$150.00$117.360.02%
NSCAdd$150.00$92.650.02%
NNNAdd$102.84$51.270.01%
BDXAdd$100.00$172.890.01%
BUDAdd$100.00$125.050.01%
EXCAdd$100.00$35.060.01%
INTCAdd$100.00$34.610.01%
MSFTAdd$100.00$57.400.01%
PEPAdd$100.00$108.470.01%
SONAdd$100.00$50.510.01%
ULAdd$100.00$47.020.01%
YORWAdd$100.00$28.970.01%
MOCOAdd$55.86$16.140.01%
GISAdd$30.65$71.780.00%
PAYXAdd$18.23$60.970.00%
BCRAdd$5.35$224.060.00%
LPHIQReduce-$0.01$0.100.00%
BBEPQSold Out-$0.05$0.050.00%
PTRReduce-$0.10$62.500.00%
HIMXSold Out-$0.10$9.090.00%
ABEVSold Out-$0.12$5.910.00%
POTReduce-$0.17$15.600.00%
PRGNFSold Out-$0.50$0.500.00%
LUKOYReduce-$0.77$45.830.00%
QCCOReduce-$0.78$0.900.00%
CEOReduce-$0.88$122.220.00%
FSBKReduce-$2.74$9.550.00%
TLKGYReduce-$6.02$17.810.00%
ISCHQSold Out-$9.61$0.260.00%
CELSold Out-$168.35$7.32-0.02%
ELNKSold Out-$315.44$7.01-0.04%
CQPSold Out-$336.59$28.05-0.04%
ABEVSold Out-$510.84$6.01-0.06%
BFRSold Out-$659.99$20.00-0.08%
DTEGYSold Out-$857.48$17.15-0.11%
POTReduce-$1,073.78$16.52-0.14%
AGNCSold Out-$2,576.54$19.82-0.32%
HIMXSold Out-$3,559.92$10.00-0.45%
Bought$39,100.114.92%
Sold-$10,080.78-1.27%
Net$29,019.333.65%

Purchases
This month, I initiated 8 new positions and added significant amounts to a handful of others, most of which are attractively priced stocks near 52-week low with low dividend payout. Total bought this month amounted to $39,100.11. I still have about $41,000 cash left in my brokerage accounts, so I will likely stay busy buying stocks for the upcoming month.


Sales
I sold a few more low-quality stocks that no longer fit well with my investment strategy. Some of the other sales are for partial shares sold consequent of the ACAT process. 

Portfolio turnover was 4.92% in August, down from all-time high of 7.27% last month, but remains high.

Here is how my assets, liabilities, and net worth have changed over the past month:

Beginning balance
on 6/30/2016
+ Cash inflow
/(outflow)
+ $ P/L= Ending Balance
on 7/31/2016
% P/L
ASSETS
Current assets
Cash74,758.85(22,539.49)0.0052,219.360.00%
Bonds13,254.45(379.32)(7.75)12,867.38-0.06%
Stocks499,388.7429,019.331,754.24530,162.310.35%
Total current assets587,402.046,100.521,746.49595,249.050.30%
Tax-deferred retirement account130,859.641,618.992,787.35135,265.982.13%
Roth IRA64,649.220.00(1,785.72)62,863.50-2.76%
Gold14,099.550.00(8.29)14,091.25-0.06%
Other non-current assets5,000.000.000.005,000.000.00%
Total assets802,010.457,719.512,739.83812,469.780.34%
LIABILITIES & EQUITY
Liabilities
Current liabilities0.000.000.000.00
Long-term debt
Student loan7,724.91(145.15)0.007,579.76
Margin loan0.000.000.000.00
Total liabilities7,724.91(145.15)0.007,579.76
Equity (net worth)794,285.547,864.662,739.83804,890.020.34%

My personal rate of return was 0.34% in August.


My monthly performance against the S & P 500 is shown below:

2016My Portfolio ReturnS & P 500 TR
Jan-3.69%-4.96%
Feb5.74%-0.12%
Mar3.99%6.79%
Apr1.39%0.39%
May0.21%1.80%
Jun3.41%0.26%
Jul4.25%3.69%
Aug0.34%0.36%
YTD16.39%8.09%

I'm happy to be at twice the market return 8 months into the year, with 4 months left to go. Will this outperformance last through this year? Only time will tell! Stay tuned!