The stock market rebounded this month with July marking the best month for the S&P 500 since November 2020, and the NASDAQ having its best month since April 2020. This rebound follows on the heels of the stock market having its worst six month start to the year in over 50 years. It is too early to tell if the stock market is on its way to a full recovery or if it will drop back down. There is still a lot of uncertainty in the economy and the world. Regardless of which way the market goes, I will continue collecting dividends and keep investing. Let’s check out my financial update for July.
Spending was held in check this month. This month was also a three paycheck month which enabled me to save a little more while also paying down some more debt. The emergency fund is now back to being fully funded. My savings rate jumped up to about 27.5% which puts me ahead of my goal to save/invest 25% of my income this year.
July is a down month of dividends for me. For the month, I received $233.85 in dividends. Compared to July 2021 the amount of dividends received increased by $2.63. Year over year, this is about a 1.14% increase. This is a little disappointing after such a big increase last month, but it is still growing. For the year, I have received $2,297.70 in dividends. As a result, I am 57.44% toward my goal of $4,000 in dividends this year.
July was a little better month for collecting options premium than June. For the month, I collected $321.61 in options premium. This is up compared to July 2021 when I collected $258.26 in options premium. For the year, I have collected $3,426.43. As a result, I am 57.1% toward my goal of collecting $6,000 in options premium this year.
Income from interest this month totaled $24.56. This is up $5.84 over the previous month. For the year, I have received a total of $78.33 in interest income.
Income from Investing
The total amount of dividends, options premium and interest totaled $580.02 for the month of July. When compared to July 2021, my income increased by $85.26 year over year. For the year, the combined income is up to $5,802.46. This works out to be about $828.92 a month, $193.42 a week, or $4.84 per hour based on an 8 hour work day.
The total amount of debt decreased by $2,096.47 this month. With the emergency fund built back up and three paychecks this month I was able to pay down more debt than normal. This puts me at 31.52% toward my goal of having less than $100,000 of debt by the end of the year. While I made good progress toward this goal this month, I still remain considerably behind and will have a lot of work to do to reach this goal.
The Traditional IRA finished the month at $116,476.32. As a result, the account value increased by $5,944.58 over last month. Year over year, the account value decreased by -$1,653.47 from July 2021. The projected annual dividend income (PADI) increased to $4,096.05. Over last month, the PADI has increased by $50.40.
The Roth IRA finished the month at $4,246.14. As a result, the account value increased by $870 over last month. Year over year, the account value increased by $3,545.97 from July 2021. The PADI increased this month to $238.23 which is an increase of $48.90 over last month.
The 401k finished the month at $13,398.43. As a result, this account is up $1,268.46 from the previous month. Year over year, this account has grown by $5,065.18 since July 2021. The PADI increased to $238.23.
The taxable brokerage account finished the month at $390.81. As a result, this account is up $59.85 over the previous month. Year over year, this account has gained $90.81 from July 2021. The PADI for this account is $1.65.
The little bit of bitcoin that I own finished the month at $15.25. This is up $4.25 from the previous month.
The total amount invested increased to $134,525.95. Month over month, the total amount invested increased by about 8,145.95. Year over year, the total amount invested increased by $7,331.92 from July 2021. All of the positions I invest in can be seen by clicking “Overall Portfolio” in the menu above.
My net worth shot back up this month to $84,850. As a result, my net worth increased by $11,381 from the previous month. Year over year, my net worth has increased by $32,101 from July 2021.
This month was a really good month. I was able to increase my savings rate, pay down debt, and invest more. While July is a slow month for dividends I was still able to increase my PADI by investing and reinvesting the dividends and options premium I received. It is also nice to see the account values grow as well as my net worth. That’s it for this month’s financial update. Thanks for following along!
*Disclaimer – I am not a financial professional. The information shared here should not be considered financial advice. I am just a factory worker sharing my experience as I strive to achieve financial freedom. Before investing or making any financial decision do your own research and due diligence or consider seeking the advice of a financial and/or tax professional.
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I use M1 Finance for my taxable growth account. M1 Finance offers promotions for signing up. At the time of writing this post, the promotion is for $10 but will vary from time to time and could be up to $50. If you are interested in M1 Finance and want to support the blog here is my referral link: https://m1.finance/ktIiFeOI5zDr
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The post Savings, Dividends, Options and Investing: Financial Update July 2022 appeared first on Blue Collar Bill.