Well, I thoroughly enjoyed that spending spree on shares. Is it just me, or does anyone else great a great kick out of the process of buying shares?
You start of with the money, you shop around and look for a certain criteria to be met. When you find a company that meets all or most of the criteria, you're heartbeat picks up a few beats.
My next step for me involves researching that stock online, finding out more about what they do as a company, and find out what people think of them as an investment. I finish by trying to find out an approximate fair value for the shares to see if they're classed as undervalued.
Then I buy the little beauties! :-)
New Goals for 2014
I recently made a decision to use Dividend Growth Investment as my main vehicle to Financial Independence by transferring money I had in a cash ISA to top up my shares ISA for the current financial year. This has really changed my position for 2014, and I have decided to revisit 2 of my goals for 2014 and change them accordingly.
The first change was to increase my annual dividend income from £100 to £300.
The second change was to increase my portfolio value from £7,000 to £12,000.
I received £9.88 in dividend income for 2013! I know this is a big increase from last year, not to mention from my previous forecast, but I love a challenge and a big goal to shoot for.
My portfolio value is currently valued just over £7,000. So I have £5,000 to make up in 8 months (£625 per month). I've committed to a fixed income Regular saving scheme which takes £300 a month from my current account each month, so I'm going to need to invest close to £1,000 a month in total. This will be a big for someone on my income (less than £30,000 pre-tax), but I'm going to give it a shot anyway!
I have two more goals for the rest of the year, and I decided that these wouldn't have been affected by increased investment into my share ISA, so I've kept these as they are.
The third goal is to save more than 50% of my income for the rest of 2014 (averaged out).
The forth and final goal is to keep my expenses below £950 per month for the rest of the year (again averaged out).
I'm quite excited to see how I'm going to get on with these two goals. I've never tracked my expenses for a prolonged period before.
I've decided to give full disclosure on my income and expenses in order to reveal EXACTLY how I get to my final position in the future. I will do this every month for you all. I'm hoping it will serve as some form of motivation for some people, because if I'm able to become Financially Independent on a fairly average salary, then anyone can do it!
Has you been tracking your expenses for a prolonged period? Has this awareness stayed for you?
I'm noticing an impact on how I spend my money already in the 2 weeks I've been doing this. Just knowing that I'm going to be writing down what I spend is making me conscious of all of my outgoings. I'm not sure if this is just because I'm new to it all or if this feeling will stay with me? Either way, I'm grateful for the awareness it has given me for now, so let's embrace that and see how it goes.
I think March will be pretty close to the 50% mark, but I feel pretty confident that I'll meet surpass the 50% saving mark next month, as I was fortunate enough to trigger a bonus at work and I'll be receiving an inflated wage for April. I think with my my one off wage coupled with my new 'spider-sense' spending awareness, I'll be well on my way to setting a very high saving target for myself.
How are you getting on with your goals for 2014 so far? Are you confident of hitting them?
Good luck to you all out there, and as ever, thank you for reading!