Investment Portfolio Update #1

I recently got a new job and I finally have some extra income to play around with at the end of the month, now as a 25-year-old it would be tempting to start using this money to buy my dream car, or another piece of tech to satisfy my hunger as a consumer. Ultimately I decided to invest it instead, this decision was inevitable, I’ve always had this unorthodox mentally of not following what others are doing, and while many at my age bracket are off partying and enjoying life, I wanted to do something more with my money than waste it on temporary pleasures. 

Work is something I dread (don’t we all?) and I wanted to find a way to get out of the rat race as quickly as I could. This leads me down a rabbit hole of research about ways to earn money and build wealth. After a few years of researching and going down various rabbit holes of topics, I finally have the confidence and the means to start investing and build wealth for retirement.

Goals

My goals here are simple, to build enough wealth where I can retire modestly and as early as possible. I want to build a passive income stream that can provide me with enough money to cover all my monthly expenses, and hopefully the rest of my family’s expenses for the rest of my life. Now, this seems like a tough task, but I think if a task seems doable you’re probably not aiming high enough. 

Strategy

I have never been a person to jump into something without thoroughly researching the matter first. With a daunting task like this, there needs to be a solid plan plotted out to make it at least seem possible. 

I decided to go the route of investing for Dividend Income. I plan on funding as much money as I can into this portfolio and reinvest the dividends I earn from my stock holdings. From my research Dividends are one of the safest ways to build wealth in the stock market. There are still certainly some risk involved, but like all things in life nothing is certain. I decided to go down this route because, in my opinion, it is a lot easier to analyze companies with Dividends in mind rather than Growth Investing. To me, growth investing is still out of my scope of knowledge and a lot more active than a passive source of income. I plan on going more into detail about my investing strategy in future posts and the differences between the two. I also decided to go with M1 Finance as the broker. The reason being, the format in which you can buy stocks on their platform makes it possible to have a diversified portfolio from the very beginning.

Portfolio

I currently only have $384 invested and a total of 51 different holdings, diversified over 9 sectors and a slew of bonds. This is a lot of companies, and I plan on trimming it down to around 20 or 30 in the future depending on where the market goes. I will be doing a monthly update on this blog to keep you posted on how the portfolio is going. I am currently down 0.14% which is small but this isn’t really where my focus is at the moment. As a dividend investor I almost want the market to go down to buy more stocks at lower costs, I will be focusing on the monthly dividend payments that companies will be paying out, I plan to grow this into a size-able amount where eventually the payouts coming in will be enough to cover all my expenses.

I am sharing my journey to hopefully inspire others to do the same. I want to prove that anyone can do it and that you can start from nothing and don’t need huge amounts of money to start building wealth. I also want to help others learn and to share my knowledge. Although limited, I want to put to the test all that I have learned researching and tons of reading about investing and creating wealth. I hope you join me on this journey and I hope you get some value out of them.

If you wanted to look at all of my holdings and its performance here is the link: https://m1.finance/tq3oWiMFD

If you sign up and fund your account we can both get $10 to get started!

If you have any questions or comments feel free to contact me, I’d love to here from you!