Saturday, June 3, 2017

Income & Expenses For May 2017

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 are my income and expenses for May 2017. You can see all my monthly budgets here.
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May 2017
Income
Wages$10,296.36
Dividends$346.91
Other Income$123.24
Total Income$10,766.51
Expense
Federal Income Tax$735.83
Federal Tax Pmt/(Refund)
FICA-SS$427.02
FICA-Medicare$99.87
Housing$450.00
Student loan repayment$0.00
Food$79.31
Cell phone$12.23
Electric$37.90
Clothing/laundry$6.50
Amazon sale costs$2.63
Ebay fee$9.50
Total Expense$1,860.79
Ex-Tax Total Expense$598.07
Surplus/(Deficit)$8,905.72
Before Tax Saving Rate82.72%
After Tax Saving Rate93.71%

Income
Wages remain my primary source of income by far.  Dividend income this month is low but typical for the Feb-May-Aug-Nov dividend cycle, as I have relatively little in stocks paying dividend during this cycle. Next month's dividend income will almost certainly be much higher.

Here is a chart of my dividend income by month for the past 13 months:

Total dividends for the trailing twelve months: $14,140.66, up 15.3% from $12,264.73 a year ago.

Expense
Big change this month is completion of my student loan consolidation. 7 years after repaying my student loans under a variable interest rate (currently 2.65%) 10-year standard repayment plan, I consolidated $6,415.18 of my remaining loan balance to a new 10-year term graduated repayment plan at a fixed 2.75% interest rate. I did this to lock into the very attractive interest rate right now as I am almost certain I can earn better than 2.75% annually over the next 10 years by investing the money instead. Because the old loan servicer placed my loans under administrative forbearance while payments to the new loan servicer does not start till next month, there was no student loan repayment this month. My new monthly student loan payment will be $35.70 instead $160.47, a positive cash flow to invest.

The other expenses were typical recurring expenses.

Total expenses for the trailing twelve months: $10,351.20, up 5.78% from $9,568.73 a year ago.
Dividend to expense coverage ratio = 1.40.

Savings
My after tax saving rate was 93.71% for the month of May 2017, meeting my 90% saving rate target. I am optimistic that my saving rate will average above 90% for the remainder of the year.

Wednesday, May 31, 2017

Portfolio Update May 2017

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.

Follow my real-time portfolio here. Below is a snapshot of my stocks and ETFs portfolio as of 5/31/17:
TickerPriceShares HeldCost BasisTotal InvestedMarket ValueG/L ($)G/L (%)Weight
Total$42.8618122.68284$34.31$621,758.25$776,822.55$155,064.3024.94%100.00%
BDX$189.23171.817069$84.97$14,600.00$32,512.94$17,912.94122.69%4.19%
VWO$40.74733.2124$39.40$28,885.07$29,871.07$986.003.41%3.85%
AFL$75.38312.0119$48.40$15,100.00$23,519.46$8,419.4655.76%3.03%
XOM$80.50269.850629$80.73$21,784.51$21,722.98-$61.53-0.28%2.80%
EMR$59.12367.414825$50.98$18,731.98$21,721.56$2,989.5815.96%2.80%
EXC$36.31570.614$30.49$17,396.43$20,718.99$3,322.5619.10%2.67%
NSC$124.03131.3$76.92$10,100.00$16,285.14$6,185.1461.24%2.10%
KO$45.47348$41.57$14,467.00$15,823.56$1,356.569.38%2.04%
WMT$78.60198$66.65$13,196.52$15,562.80$2,366.2817.93%2.00%
MOCO$29.95517.375$13.82$7,150.00$15,495.38$8,345.38116.72%1.99%
BRK.B$165.2892$122.05$11,228.54$15,205.76$3,977.2235.42%1.96%
AZO$605.9224$729.09$17,498.08$14,542.08-$2,956.00-16.89%1.87%
BMTC$40.85331.571976$23.83$7,900.00$13,544.72$5,644.7271.45%1.74%
PG$88.09153.38$69.87$10,715.96$13,511.24$2,795.2826.09%1.74%
SPGI$142.8189.647935$45.73$4,100.00$12,802.62$8,702.62212.26%1.65%
UL$55.62229$41.80$9,572.56$12,736.98$3,164.4233.06%1.64%
LMT$281.1344.233058$96.91$4,286.67$12,435.24$8,148.57190.09%1.60%
VFC$53.80227$57.56$13,066.38$12,212.60-$853.78-6.53%1.57%
AZN$34.39344$22.13$7,613.49$11,830.16$4,216.6755.38%1.52%
GILD$64.89174$75.87$13,202.24$11,290.86-$1,911.38-14.48%1.45%
MCD$150.8972$104.07$7,493.25$10,864.08$3,370.8344.98%1.40%
NKE$52.99203$51.28$10,410.52$10,756.97$346.453.33%1.38%
MSFT$69.84147$40.12$5,897.98$10,266.48$4,368.5074.07%1.32%
SON$50.71185.968$35.76$6,650.00$9,430.44$2,780.4441.81%1.21%
CVX$103.4888$95.19$8,376.87$9,106.24$729.378.71%1.17%
YORW$33.10271.448$21.18$5,750.00$8,984.93$3,234.9356.26%1.16%
INTC$36.11245$27.34$6,698.92$8,846.95$2,148.0332.07%1.14%
ESLT$122.1870$36.86$2,580.05$8,552.60$5,972.55231.49%1.10%
PEP$116.8772.620244$80.34$5,834.51$8,487.13$2,652.6245.46%1.09%
ED$82.7998$70.40$6,899.44$8,113.42$1,213.9817.60%1.04%
BUD$116.9568$108.73$7,393.41$7,952.60$559.197.56%1.02%
HCP$31.34245$35.65$8,734.17$7,678.30-$1,055.87-12.09%0.99%
ABBV$66.02114$61.84$7,050.14$7,526.28$476.146.75%0.97%
MAT$22.91327$29.04$9,494.55$7,491.57-$2,002.98-21.10%0.96%
NVS$81.7789.713$73.57$6,600.00$7,335.83$735.8311.15%0.94%
KMB$129.7356$115.30$6,456.80$7,264.88$808.0812.52%0.94%
DIS$107.9467$95.88$6,423.84$7,231.98$808.1412.58%0.93%
T$38.53187$33.89$6,336.85$7,205.11$868.2613.70%0.93%
NVO$42.37163$38.92$6,344.74$6,906.31$561.578.85%0.89%
PEG$44.91148.004$30.07$4,450.00$6,646.86$2,196.8649.37%0.86%
VMI$146.4044.174$121.11$5,350.00$6,467.07$1,117.0720.88%0.83%
SNY$49.59130.402$40.64$5,300.00$6,466.64$1,166.6422.01%0.83%
BCR$307.4320.669072$96.76$2,000.00$6,354.29$4,354.29217.71%0.82%
BEN$41.79150$35.26$5,289.56$6,268.50$978.9418.51%0.81%
ATGE$37.40167$22.09$3,688.64$6,245.80$2,557.1669.33%0.80%
VIAB$34.79177$41.08$7,271.21$6,157.83-$1,113.38-15.31%0.79%
SAN$6.54925$6.78$6,273.42$6,049.50-$223.92-3.57%0.78%
SRCL$81.7772$82.12$5,912.79$5,887.44-$25.35-0.43%0.76%
CSX$54.17108$21.04$2,272.36$5,850.36$3,578.00157.46%0.75%
OGZPY$4.171390.2431$6.09$8,464.47$5,797.31-$2,667.16-31.51%0.75%
VIG$92.9360$59.80$3,587.92$5,575.80$1,987.8855.40%0.72%
UHS$113.6647$122.89$5,776.00$5,342.02-$433.98-7.51%0.69%
VEA$41.54126.90923$31.03$3,938.54$5,271.81$1,333.2733.85%0.68%
RL$67.8076$90.84$6,904.03$5,152.80-$1,751.23-25.37%0.66%
CTSH$66.9175$53.00$3,975.00$5,018.25$1,043.2526.25%0.65%
AAN$36.52133$22.62$3,008.06$4,857.16$1,849.1061.47%0.63%
GPS$22.50200$20.99$4,197.60$4,500.00$302.407.20%0.58%
LUKOY$48.2589$49.38$4,395.19$4,294.25-$100.94-2.30%0.55%
CHL$55.1177.42$47.44$3,672.95$4,266.62$593.6716.16%0.55%
HPE$18.81220$9.77$2,150.40$4,138.20$1,987.8092.44%0.53%
HPQ$18.76220$8.89$1,956.29$4,127.20$2,170.91110.97%0.53%
JNJ$128.2532$61.42$1,965.54$4,104.00$2,138.46108.80%0.53%
RBCAA$34.68118$21.26$2,508.83$4,092.24$1,583.4163.11%0.53%
AN$39.52101$46.53$4,700.00$3,991.52-$708.48-15.07%0.51%
FOX$26.90146$25.60$3,736.97$3,927.40$190.435.10%0.51%
SBRCY$11.19346$6.18$2,137.25$3,871.74$1,734.4981.16%0.50%
RHHBY$34.38112$30.80$3,449.74$3,850.56$400.8211.62%0.50%
DGS$45.7983.77$44.07$3,691.36$3,835.83$144.473.91%0.49%
FISV$125.2830$100.80$3,024.00$3,758.40$734.4024.29%0.48%
GIS$56.7465.832$37.98$2,500.00$3,735.31$1,235.3149.41%0.48%
K$71.6051.759$50.11$2,593.58$3,705.94$1,112.3642.89%0.48%
CVS$76.8348$88.52$4,248.81$3,687.84-$560.97-13.20%0.47%
BVN$12.44282$9.23$2,601.60$3,508.08$906.4834.84%0.45%
HSIC$183.9719$155.68$2,958.00$3,495.43$537.4318.17%0.45%
FOSL$10.77322$24.72$7,961.06$3,467.94-$4,493.12-56.44%0.45%
FNDE$26.68129.85$24.59$3,193.03$3,464.40$271.378.50%0.45%
BBBY$34.4185$41.60$3,536.00$2,924.85-$611.15-17.28%0.38%
TIF$86.9633$60.25$1,988.40$2,869.68$881.2844.32%0.37%
PII$83.6034$76.53$2,602.00$2,842.40$240.409.24%0.37%
PPL$39.9170.09$23.92$1,676.52$2,797.29$1,120.7766.85%0.36%
SBS$8.93307$4.92$1,510.38$2,741.51$1,231.1381.51%0.35%
WBA$81.0233$36.78$1,213.89$2,673.66$1,459.77120.26%0.34%
IBM$152.6317$133.64$2,271.92$2,594.71$322.7914.21%0.33%
DE$122.4621$74.65$1,567.56$2,571.66$1,004.1064.05%0.33%
DHR$84.9429$79.24$2,298.10$2,463.26$165.167.19%0.32%
CEO$112.7621.66$144.63$3,132.74$2,442.38-$690.36-22.04%0.31%
PAYX$59.2340.888$33.02$1,350.00$2,421.80$1,071.8079.39%0.31%
TLK$32.9772$16.17$1,164.01$2,373.84$1,209.83103.94%0.31%
HCN$72.5432.2743$55.77$1,800.00$2,341.18$541.1830.07%0.30%
LLY$79.5728$35.93$1,006.02$2,227.96$1,221.94121.46%0.29%
DISCA$26.5079$24.99$1,974.52$2,093.50$118.986.03%0.27%
OGS$70.6529.562$33.83$1,000.00$2,088.56$1,088.56108.86%0.27%
DLTR$77.7025$76.92$1,923.08$1,942.50$19.421.01%0.25%
SGTZY$5.18371$6.45$2,392.73$1,921.78-$470.95-19.68%0.25%
IJR$68.3328$69.45$1,944.60$1,913.24-$31.36-1.61%0.25%
GWW$172.2811$180.55$1,986.00$1,895.08-$90.92-4.58%0.24%
TGT$55.1532$59.00$1,887.92$1,764.80-$123.12-6.52%0.23%
SJI$36.4147.1864$24.37$1,150.00$1,718.06$568.0649.40%0.22%
WFC$51.1432$45.86$1,467.50$1,636.48$168.9811.51%0.21%
BP$36.1544$39.34$1,731.17$1,590.60-$140.57-8.12%0.20%
OAOFY$40.5638$28.59$1,086.23$1,541.28$455.0541.89%0.20%
CHKP$112.0513$74.85$973.05$1,456.65$483.6049.70%0.19%
GGG$109.8713$73.00$949.00$1,428.31$479.3150.51%0.18%
FSBK$14.21100$4.51$451.00$1,421.00$970.00215.08%0.18%
STRA$88.4516$48.00$768.00$1,415.20$647.2084.27%0.18%
WLK$61.4623$44.00$1,012.00$1,413.58$401.5839.68%0.18%
DXC$77.5218$68.10$1,225.77$1,395.36$169.5913.84%0.18%
ESRX$59.7523$65.32$1,502.37$1,374.25-$128.12-8.53%0.18%
CERN$65.3521$47.80$1,003.80$1,372.35$368.5536.72%0.18%
MPC$52.0426$18.83$489.68$1,353.04$863.36176.31%0.17%
POT$16.5277$23.11$1,779.18$1,272.04-$507.14-28.50%0.16%
MDLZ$46.5927$17.63$475.90$1,257.93$782.03164.33%0.16%
TESS$13.9088.983$8.99$800.00$1,236.86$436.8654.61%0.16%
AXP$76.9416$59.77$956.29$1,231.04$274.7528.73%0.16%
NNN$38.3731.532$44.40$1,400.00$1,209.88-$190.12-13.58%0.16%
RHI$46.4926$36.06$937.56$1,208.74$271.1828.92%0.16%
CICHY$16.5073$13.64$995.73$1,204.50$208.7720.97%0.16%
TLSYY$16.3472$14.78$1,064.26$1,176.48$112.2210.54%0.15%
BF.B$51.9522$45.82$1,008.04$1,142.90$134.8613.38%0.15%
MRK$65.1117$34.30$583.18$1,106.87$523.6989.80%0.14%
SCL$84.6213$38.46$499.98$1,100.06$600.08120.02%0.14%
VSS$107.6710$87.82$878.20$1,076.70$198.5022.60%0.14%
KSS$38.4328$43.64$1,221.96$1,076.04-$145.92-11.94%0.14%
TROW$70.4415$67.00$1,005.00$1,056.60$51.605.13%0.14%
CAH$74.2914$74.84$1,047.76$1,040.06-$7.70-0.73%0.13%
MYTAY$8.37124$13.18$1,633.71$1,037.88-$595.83-36.47%0.13%
BCMXY$19.4652$16.07$835.50$1,011.92$176.4221.12%0.13%
CMP$64.1514$69.00$966.00$898.10-$67.90-7.03%0.12%
ARLP$21.5041$26.68$1,094.01$881.50-$212.51-19.42%0.11%
TLKGY$22.0336$19.78$711.92$793.08$81.1611.40%0.10%
PNW$88.358.884381$35.01$311.00$784.94$473.94152.39%0.10%
AAPL$152.765$94.64$473.20$763.80$290.6061.41%0.10%
RAVN$33.8522$22.60$497.20$744.70$247.5049.78%0.10%
BIIB$247.773$221.90$665.71$743.31$77.6011.66%0.10%
KHC$92.208$25.41$203.28$737.60$534.32262.85%0.09%
PB$62.6411$45.43$499.73$689.04$189.3137.88%0.09%
IMBBY$47.5914$62.93$880.98$666.26-$214.72-24.37%0.09%
EFSI$30.2022$22.85$502.70$664.40$161.7032.17%0.09%
AEO$11.5054$11.93$644.35$621.00-$23.35-3.62%0.08%
AMGN$155.244$141.00$564.00$620.96$56.9610.10%0.08%
PDLI$2.39255$6.05$1,542.59$609.45-$933.14-60.49%0.08%
ICE$60.1910$16.67$166.66$601.90$435.24261.15%0.08%
IDCBY$13.3045$12.18$548.10$598.50$50.409.20%0.08%
HSY$115.275$90.47$452.35$576.35$124.0027.41%0.07%
BACHY$12.4845$11.00$495.00$561.60$66.6013.45%0.07%
CCFN$46.5012$39.50$474.00$558.00$84.0017.72%0.07%
WTR$32.6917.045122$29.33$500.00$557.21$57.2111.44%0.07%
CLD$3.39158$9.44$1,492.23$535.62-$956.61-64.11%0.07%
NTTYY$48.1811$22.30$245.34$529.98$284.64116.02%0.07%
HFC$23.9022$23.50$517.00$525.80$8.801.70%0.07%
RLI$55.549$57.00$513.00$499.86-$13.14-2.56%0.06%
BCS$10.7746$14.02$644.92$495.42-$149.50-23.18%0.06%
NAT$5.9682$19.64$1,610.79$488.72-$1,122.07-69.66%0.06%
SB$2.06233$7.99$1,861.40$479.98-$1,381.42-74.21%0.06%
MPLX$33.0513$8.59$111.66$429.65$317.99284.78%0.06%
SAM$142.753$139.50$418.50$428.25$9.752.33%0.06%
MRO$13.0227$29.92$807.79$351.54-$456.25-56.48%0.05%
ATW$10.0433$15.00$495.00$331.32-$163.68-33.07%0.04%
TRGP$45.937$27.35$191.42$321.51$130.0967.96%0.04%
IEMG$49.846.25$49.67$310.46$311.50$1.040.33%0.04%
HNNMY$4.9461$6.53$398.52$301.34-$97.18-24.39%0.04%
CPLP$3.3375$8.53$639.48$249.75-$389.73-60.94%0.03%
RAD$3.4166$8.00$527.84$225.06-$302.78-57.36%0.03%
UNP$110.301.816088$110.13$200.00$200.31$0.310.16%0.03%
DYN$8.2724$29.77$714.50$198.48-$516.02-72.22%0.03%
DPS$92.812.024907$98.77$200.00$187.93-$12.07-6.03%0.02%
LYG$3.7050$3.24$162.00$185.00$23.0014.20%0.02%
GSH$27.214.59$20.75$95.24$124.89$29.6531.14%0.02%
AMC$22.505$18.00$90.00$112.50$22.5025.00%0.01%
MVC$9.4611$8.84$97.28$104.06$6.786.97%0.01%
TSCDY$7.1111$14.33$157.63$78.21-$79.42-50.38%0.01%
VTI$123.850.55363$68.57$68.57#DIV/0!0.01%
QCCO$0.60113$3.63$410.25$67.80-$342.45-83.47%0.01%
PTR$66.300.97$99.24$96.26$64.31-$31.95-33.19%0.01%
LGCY$2.0228$15.62$437.22$56.56-$380.66-87.06%0.01%
BIVV$55.091$37.77$37.77$55.09$17.3245.84%0.01%
BK$47.121$25.01$25.01$47.12$22.1188.40%0.01%
EVEP$1.0332$21.84$698.97$32.96-$666.01-95.28%0.00%
BPI$13.841$17.85$17.85$13.84-$4.01-22.46%0.00%
ALN$0.4515$2.11$31.65$6.75-$24.90-78.67%0.00%
BKS$6.701$8.70$8.70$6.70-$2.00-22.99%0.00%
LQD$120.250.02834$3.41$3.41#DIV/0!0.00%
VGIT$65.040.04644$3.02$3.02#DIV/0!0.00%
TIP$114.680.021$2.41$2.41#DIV/0!0.00%
SJNK$28.140.0548$1.54$1.54#DIV/0!0.00%
VNQ$82.190.00959$0.79$0.79#DIV/0!0.00%
ZAHLY$0.0123$6.64$152.72$0.23-$152.49-99.85%0.00%
VCSH$80.150.0024$0.19$0.19#DIV/0!0.00%
FAZ$19.42-100$34.42-$3,441.54-$1,942.00$1,499.54-43.57%-0.25%
ERY$13.65-200$13.07-$2,614.59-$2,730.00-$115.414.41%-0.35%
EDZ$14.92-200$27.57-$5,514.54-$2,984.00$2,530.54-45.89%-0.38%
TZA$18.20-350$21.62-$7,566.14-$6,370.00$1,196.14-15.81%-0.82%

My transactions in May are listed as follows:
StockActionCostPrice per share% of Portfolio
GWWNew Buy$1,986.00$180.550.20%
AZOAdd$1,925.00$641.670.20%
CAHAdd$497.70$71.100.05%
IJRAdd$479.50$68.500.05%
XOMAdd$300.00$82.660.03%
AFLAdd$300.00$74.820.03%
BDXAdd$200.00$181.870.02%
BMTCAdd$200.00$42.650.02%
DPSAdd$200.00$98.770.02%
EMRAdd$200.00$58.450.02%
UNPAdd$200.00$110.130.02%
NVSAdd$200.00$77.370.02%
SNYAdd$200.00$49.520.02%
YORWAdd$200.00$32.920.02%
VMIAdd$200.00$152.320.02%
SONAdd$200.00$52.400.02%
NNNAdd$113.02$38.610.01%
GISAdd$31.34$56.980.00%
HCNAdd$27.74$71.380.00%
PAYXAdd$18.66$59.050.00%
VTIAdd$5.72$122.690.00%
BCRAdd$5.37$307.840.00%
VEAAdd$2.37$40.470.00%
VWOAdd$0.86$40.550.00%
LQDAdd$0.31$119.230.00%
VGITAdd$0.28$63.930.00%
TIPAdd$0.24$114.290.00%
SJNKAdd$0.14$27.180.00%
VNQAdd$0.08$86.960.00%
Bought$7,694.330.79%
Sold$0.000.00%
Net$7,694.330.79%

Purchases
This month, I initiated new position in GWW and added to my positions in AZO and CAH near 52-week low. I might have bought GWW and AZO too soon, as they continued falling after I made my purchases. The rest of my purchases are part of my monthly investment plans and DRIP. 

Sales
None.

Here is how my assets, liabilities, and net worth have changed over the past month:
Beginning balance
on 5/1/2017
+ Cash inflow
/(outflow)
+ $ P/L= Ending Balance
on 5/31/2017
% P/L% Equity
ASSETS
Current assets
Cash12,890.28(941.30)0.0011,948.980.00%1.22%
Bonds12,776.34(371.26)(31.87)12,373.21-0.25%1.26%
Stocks700,556.036,508.50(3,004.10)704,060.43-0.43%71.86%
Total current assets726,222.655,195.94(3,035.97)728,382.62-0.42%74.34%
Tax-deferred retirement account164,278.521,515.232,709.65168,503.401.65%17.20%
Roth IRA73,294.10459.4573,753.550.63%7.53%
Gold13,656.586.3513,662.930.05%1.39%
Other non-current assets3,000.00(500.00)0.002,500.000.00%0.26%
Total assets980,451.856,211.17139.48986,802.500.01%100.71%
LIABILITIES & EQUITY
Liabilities
Current liabilities583.71(25.00)0.00558.710.06%
Long-term liabilities
Student loan6,406.7014.270.006,420.970.66%
Other non-current liabilities0.000.000.000.000.00%
Total liabilities6,990.41(10.73)0.006,979.680.71%
Equity (net worth)973,461.446,221.90139.48979,822.820.01%100.00%

During May, my net worth increased 0.65% to $979,822.82, mainly due to net cash inflows (0.64%). P/L (0.01%) was essentially unchanged. My net worth is inching toward the $1 mil milestone.

Below is a chart of my net worth since I started tracking on a monthly basis:

My monthly performance against the S & P 500 is shown below:
2017My Portfolio ReturnS & P 500 TR
Jan2.39%1.90%
Feb2.08%3.97%
Mar0.97%0.12%
Apr2.22%1.03%
May0.01%1.44%
YTD7.89%8.71%

While my return was still positive (just barely) this month, it trailed the index badly. So I find myself trailing the index YTD once again. Not very good, but it's a close race so I still have time to catch up during the rest of the year.