I am very glad I have set a realistic, attainable goal this year and am churning my way to it. I remember last year, I was sprinting past my 2014 goals early and often, but this year definitely is different. This year is harder, this year is more strategic, this year takes much more effort than usual. My goal by the end of the year is to have a projected $6,750 in forward-looking dividend income, and well – this month has allowed me to reach closer to the goal, but to also cross a milestone along the path. This month events and activities have allowed me to Crush through $6,000 in projected dividend income!
Crushing $6,000 in Projected Dividend Income
It seemed like it was 10 years ago when I officially crushed the $5,000 in projected dividend income. It has been a battle for the first 7-8 months this year in 2015 to reach the next milestone of $6,000 in dividend income. When you think about it – Adding $1,000+ in dividend income takes, at 3% yield, $33,333.33 to be invested, not considering dividend growth. I went stale at one point during the year and was having buyer’s anxiety, but luckily and lately – Mr. Market has been taking a downturn for us. I have been able to continuously have strong savings month, as evidenced by my 3 month savings article, from all of the frugality rules I live by, as I strive to save 60% of my income each month
I will have to admit – finishing the year with a projected income of $6,750 was going to take a full 12 rounds (months.. haha) in the ring this year and my body is taking a few hits along the way – but these hits or capital contributions are making an impact/making my portfolio stronger. When I began establishing my goals, I could have just been happy with $5,750 this year or even just hitting $6,000 or essentially where I’m writing this article, right here, right now. But no, that would have been too easy and wouldn’t have been worth fighting for. I do get emotional occasionally, and do like to push myself to the edge or limit where I can – essentially running on thin ice the majority of the year with my cash reserves – just to see my tolerance levels.
How I Crossed Crushed $6,000 in Projected Income
Well, I started the year off making a few purchases into DOW and TUP to begin the forward income journey. I then had to make a decision to keep holding onto Lorillard stock and let the merger close to transfer my ownership into Reynolds stock, but instead made a decision to sell my LO shares and move the funds into Phillip Morris (PM), expanding my forward income with the proceeds. I kept making purchases, such as buying one of the foundation stocks that we have talked about in the past for dividend income investors and placed capital into Johnson & Johnson (JNJ). The journey to crushing $6,000 didn’t end there, as this summer I definitely felt the power of the 401K match and the benefits it can provide a dividend income investor (receiving the match at the end of June).
Then August hit… after record breaking months of dividend income and purchases throughout the 7 months of 2015, I made 2 purchases. First purchase that really put me over was with Emerson Electric, thanks Bert for the recommendation. That already topped me over the $6,000 mark and then came the 2nd purchase of Norfolk Southern. This actually allowed me to cross $6,127.39 in forward-looking income for my dividend stock portfolio. I am stunned, shocked and surprised. Sweat and tears for some reason to get over this hurdle. It took only 3 months to go from $4K to $5K, but for some reason to get over $6K just was harder, it’s odd. Here is the capture from my excel tracking:
Conclusion
What does that even mean? It’s insane. $6,127.39 means $510.62 per month on average in dividend income going forward, as of today. This covers my mortgage payment before property tax and insurance. OR this pays for more than all of my utilities, my auto loan and auto insurance. OR this pays for an adventure for a weekend if I wanted. OR… well you get the picture. This is going to be able to buy freedom and time and gosh dammit I want more of that. I am still $622.61 away from my goal… and well – since I leap frogged into $6.1K territory, I don’t see anything stopping me but… ME. So I need to get out of my way and kill/crush the 2015 goal of $6,750 next. LETS GO!
Thoughts on this milestone? Are you reaching for and potentially hitting one of your own? Are you surprised by your own actions? Would love to hear where you are all at! Thank you again.
-Lanny