December is now in the books, and my first year of dividend investing (and intense savings) has come to a finish! Prior to 2012, the path to early financial independence was not really on mind, so I did not have any real financial goals, other than “save a bit more than I spend.”
However, in late 2011, I started to think, “what do I ultimately want to do with my life?” I had finished school, had a good career, and wanted to know what was in stored for the future. The more I thought about it, the more I realized how much I really didn’t like working. When I envisioned what life might be like in my 40’s and 50’s, images of working in a cubicle or lab environment were enough to make me sick to my stomach. I knew I needed a way out, so I formulated a plan for 2012. As part of the plan, I needed to make sure that my savings rate >>>>> expenses.
So, how did I do? In December, my savings rate was 72.47% of net income. I did a rather poor job of saving in November, so it’s nice to be back in the 70% savings range. In a way, I feel like I was able to redeem myself for last month. It is a little more difficult to save during the holiday season, so I’m glad that I was able to stick to the gameplan and close the year off on a high note. 😉
For the year, my average savings rate came in at 68.96%. August was my worst performing month, when I dipped below 50%, and managed to only save 42.93%. A lot of expenses were due to rental repair work (which I will reimburse during tax season). My highest savings rate happened in October, when I was able to save 84.04%. Again, this abnormal rate was made possible due to a yearly bonus that I received (which I used to load up on dividend stocks). I didn’t quite make it to 70% for the year, but I came close. For 2013, my goal is to save 80% of my net income. Let’s keep on striving to do better!
I paid off the first installment of property tax on my rental unit, so I’m back to generating a profit this month. After accounting for all the expenses, I was able to pocket $644.43.
The trash and recycling seems to be an erratic bill. Last time around, they build me for a 3 month cycle. This time, they decided to bill me for a 2 month cycle, ending in December.
Net profit also takes into account the $100 gift card that I decided to give to my tenant as a Christmas present. The gift was my way of saying “thank you” for being such a good sport after we had to deal with the whole satellite dish fiasco back in November. Who says all landlords are heartless? 😉
28 shares of The Southern Company (SO)
61 shares of LinnCo (LNCO)
December was a great month for dividends! 14 companies paid out and I was able to eclipse $300/month in dividends for the first time. This was a nice milestone to reach, as it was only 3 months ago when I reached $200/month for the first time.
Here are the dividend payouts for the month: