Categories
Frugal Tips

Saving Money Through Intermittent Fasting

In the constant search for ways to save money and to be healthier, I have come across intermittent fasting. Most people start intermittent fasting for the health benefits, but many people forget the economic benefits from choosing not to eat breakfast every day. In this post, I’m going to go over both the health benefits and why fasting can be a great way to save money as well. So without further ado, let’s dive in!

Let’s start with the question, “What is intermittent fasting?” Intermittent fasting is where you fast for an extended period of time, it could be a fast for 12 hours or it could be a fast of 20+ hours. During the fasting period, you are not supposed to have any calories at all. This allows your digestive system to recover and take a break so it’s not constantly working. Many people are starting to do this and more and more are finding the health benefit of this fasting. Because you are eliminating all calories for the majority of the day, you can see how it can be beneficial to your waist if you do it properly.

I’ve been practicing intermittent fasting for over a year now. I didn’t consult a doctor or anything and if you choose to try intermittent fasting, I recommend doing your own research or at the very least, talk to your doctor about it first. My wife recently joined me a couple months ago and we both are feeling great about it. We finish consuming calories at 5:00 PM every night and we can consume calories again starting at 11:00 AM the next morning. So we fast for 18 hours and I do it every day, but my wife just does it during the week. Just as a personal anecdote, I’ve gone from 228 pounds down to 213 in the past month and a half alone from fasting as well as playing pickleball every chance I get. Although these results won’t be there for everyone, you definitely can slim down a bit because of intermittent fasting.

Fasting is actually pretty easy once you start doing it more often. You soon realize that water, tea, and black coffee are you best friends. Tea and black coffee don’t have any calories unless you add sugar or creamer so if you like these drinks, you’re in luck! Coffee is a hunger suppressant so it does make fasting easier as well and I already told you about how to save money by making your own coffee every money. Along with promoting hydration by drinking more water, you are also cutting out all sodas that are full of sugar and calories that leave you severely dehydrated.

Now we reach the main subject of this discussion, how does it help you save money? Well, you are eliminating an entire meal per day… just let that sink in. You don’t have to go to the grocery store and get breakfast foods. Cereal, bagels, waffle mix, pancake mix, breakfast bars, and any other kinds of breakfast foods that are loaded with sugar, unhealthy fats, and refined carbs are eliminated and out of your house. I haven’t bought breakfast in so long, that I don’t even know how much these things cost. But if you regularly purchase $30 worth of breakfast foods every time you go to the store, you can see how these savings could add up and you can add that money to your emergency fund or even funnel it right into your investments.

My only exception to the breakfast foods is oatmeal. When it’s cold outside, there’s nothing better than having 11:00 AM come around which allows me the luxury of having a warm bowl of oatmeal. During winter, I always break my fast with oatmeal. It’s full of fiber and it keeps things moving and regular if you know what I mean.

When it comes to actually eating in the 6 hour window that my wife and I have, we have foods that have filling fiber, we might make a smoothie, have some fruit or a salad. On the flip side, we might eat absolute trash and have leftover pizza or some pasta or something frozen that we just threw in the oven or microwave. We don’t count calories as long as we just stay in the eating window that we have. As average people eating 2,000 calories per day, it’s hard for us to get over that number if we just limit our eating and snacking to 6 hours per day.

If you are looking to start intermittent fasting, I have a big tip that will help you. Drink. Water. A lot of the times when you’re “hungry”, you’re actually just thirsty. But you can’t tell hunger pains from being thirsty so you just think the best thing is to snack on something. I’m here telling you that drinking water will keep your stomach happy and not screaming for you to fill it. Along with that, most people don’t realize how dehydrated they are. If your urine is a light straw color, that’s a good sign. If your urine is a darker yellow or brown, that’s a sign that you’re dehydrated. I personally aim to drink at least 160 ounces of water per day. I usually stop drinking an hour before I go to sleep which is 9:00 PM so I can sleep without having to wake up and go to the bathroom at night.

Again, I am not a doctor. And before you start doing this, I recommend you consult with your doctor and do more research on intermittent fasting and you can plan for doing it better. Are the health benefits and money saving benefits worth fasting? In my opinion, the benefits far outweigh the downsides, if there are any.

I’ll end this post here. I just wanted to give you information and more money saving tips so if you’re looking to cut your expenses, that it’s a little bit easier to find ways to do so. If you don’t want to try intermittent fasting, no worries! There are plenty of other ways to save money and cut your expenses.

Thank you so much for reading and I hope you find this information informative. I’ll catch you on the next one!

Marcus

Categories
Portfolio Updates

October Update to the Portfolio

Hey everyone, it’s that time of the month when I’ve made my last few acquisitions and additions to the portfolio. Now it’s time for me to summarize everything that I’ve done in this last month of October. Before you take a look at what I’ve done, just understand that this type of purchasing power is only done with safety nets in place. My wife and I have enough emergency savings to last us 10 months without either of us working so if you don’t have an emergency savings, I don’t recommend doing this much investing. 

I did not include my Roth IRA because it’s in mutual funds and I have a financial guy that takes care of that. With that being said, here is a look at the moves I’ve made in the market over this past month of October.

TickerSharesAverage CostTotals
ABBV2$86.33$172.66
CSCO3$39.77$119.31
CWEN5$29.62$148.10
DUK3$92.67$278.01
IRT12$11.60$139.20
KO6$50.14$300.84
LYB2$69.01$138.02
MAIN4$30.49$121.96
MO7$39.19$274.33
O2$61.02$122.04
PFE7$36.72$257.04
SO4$58.55$234.20
T6$27.55$165.30
VZ2$57.84$115.68
WTRG6$41.96$251.76

These are the new additional holdings to the account this month 

TickerSharesAverage CostTotals
AFL14$33.94$475.16
IRM20$26.29$525.80
STX10$51.61$516.10

You might be looking at this and realizing that this is more than what I said I would be investing every month. That’s because last month, we had way more in our savings than we needed so I decided to invest it into our dividend account. 

As you can see, I don’t try to buy the dips if I can help it. I’m a long term investor. I buy shares based on when the Ex-Dividend dates are and the goal is to grow my portfolio. If I waited for the perfect opportunity to get in the market, I would always be on the sidelines without growing my account.

The strategy I took up this month was trying to get every holding that I have closer to $500. I won’t be doing this in the future, but I just set that little goal for our account and now that I’ve reached it, I’m going to start purchasing additional shares based on when their Ex-Dividend date is. Since I’m not selling my holdings, I’m just going to keep buying and hold. 

For November, I’m going to be looking at the following companies with their Ex-Dividends coming up this month:

PFE – 11/5

WTRG – 11/12

DUK – 11/12

SO – 11/13

AFL – 11/17

MAIN – 11/24

KO – 11/30

By the end of the year, I’m trying to hit a number of different milestones for the account.

  1. Reach Annual Projected Dividend Income of $500. I’m at $474 right now!
  2. Reach a $10,000 account size. I’m at $8,750 as of the writing of this article!
  3. Hitting 20 different holdings in my account. I’m currently at 19 and need just 1 more to hit it!

I hope this information helped you out with understanding my strategy as a long term dividend growth investor and hopefully it spurs some motivation for you and your account! Thank you so much for reading along and I’m looking forward to seeing what’s in store for November. I’ll catch you on the next one!

Marcus 

Categories
Dividend Analysis

Markets are Slipping: Is It Time to Panic?

Many new investors out there aren’t sure how to handle the recent drop in the markets. Since October 12, the DOW has been down 6.27% as of the writing of this post. The S&P 500 has been down 5.69% over the same time span. If you’re new to investing and haven’t experienced a drop yet, you might be panicking because your small account has constantly been losing money over the past 2 weeks.

I’m here to tell you to not panic!

Think of the markets as a roller coaster. There will be ups and downs, twists and turns. It’s up to you to stay disciplined and to not panic. If you consider the market as a literal market, you want to buy items that are on sale right? That’s the way I think about dips in the market. All of my favorite items are on sale! It’s not like one or two of my investments are down because they’re bad investments, the entire market is down so I have nothing to worry about. If anything, I think of it as an opportunity.

I’m 27 and still have decades of investing to do before I officially retire. So averaging down for my portfolio is great for me. For those who are close to retirement, this might not be the case. But for most of you new investors out there, this is an opportunity. The market as a whole is consistently upward trending.

If you take a look at the chart above, you’ll see that throughout the span of 90 years, there is an upward trend. The Great Recession was an awful event that devastated millions of families, but if you look at the market, the economy recovered and skyrocketed even higher than it was before.

If you stayed in the market and bought at the low in 2009, for the past 12 years, your wealth would have grown by 338%! I’m not saying that this is what is currently happening, I mean it might because of the pandemic, but it might not.

The moral of the story is that you don’t want to get off the roller coaster while it’s going because that’s when you get hurt. Investing in the market regardless of if it’s down or not is something that seasoned investors do. While you can’t time the market, you can utilize dollar cost averaging at any time.

I hope after reading the post, you settle down and make a decision not out of panic, but out of careful consideration. You will experience downturns in the market and if you’ve been in it for any considerable length of time, you’ll definitely feel market slides. Although it might be tough to stay in and not panic, getting out at the bottom is the worst thing you can do for your finances.

I’ll end on that note for this post and I hope you enjoyed reading about the stock market dips that we are currently experiencing. Thank you so much for reading and I’ll catch you on the next one!

Marcus

Categories
Dividend Analysis

Why I’m Quacking for Aflac

As a dividend investor, I’m constantly looking for new opportunities and dividends to invest in. This time, my digging has brought me to a company that’s been around for over half a century. It’s an insurance company that has a solid and consistent track record and after being on my radar for some time now, I’ve finally decided to take a position in it.

In my next batch of purchases, I will be investing in the most annoying duck that has ever been on commercials… Aflac.

Like I said before, this company deals with insurance and right now, people need insurance more than ever. With the current political landscape, our healthcare system isn’t going to be upended anytime soon contrary to what some news outlets might think. But taking the politics out of the equation, let’s look at the financials to see what makes Aflac such an attractive buy as a Dividend Aristocrat.

FINANCIALS

With a current share price of $36.58, Aflac is an easy investment to grab shares in. It currently offers a strong yield of 3.05% and it gives investors a quarterly dividend of $0.28 per share. What I really enjoy with this investment is the fact that it’s a Dividend Aristocrat. It has been consistent in growing it’s dividend for the past 38 years! With a 10 year growth rate of 6.79% Aflac really values the dividends it pays out to investors and it’s growth is very important to them.

What is even more stunning is how safe the dividend is. It’s current Payout Ratio is an incredible 23.88% While normally, I value companies that are within the 40-60% range, this company has shown that it is very consistent in the dividend growth and to a dividend investor like myself, this is a perfect opportunity to get into.

To top it all off, it’s current Price to Earnings Ratio is 9.46! This is just further proof that this dividend is so safe, that they have plenty of room to grow it more in the future and every increase in the dividend for an investor like me is essentially just a raise in the income I receive every quarter.

Conclusion

So there you have it. A Dividend Aristocrat such as Aflac has been on my radar ever since I started this journey 3 months ago. After all the research that I’ve done myself along with other blogs that I’ve read on the company, I feel like Aflac is going to be a terrific addition for my personal portfolio. I haven’t purchased shares yet, but will be doing so at the end of the month and I will be updating my portfolio when I do.

Thank you so much for reading my take on Aflac. I hope you found it informative so you can have a starting point if you want to research this company. I’m ending this post on that note and I’ll catch you on the next one!

Marcus

Categories
Frugal Tips

How to Save Money on Coffee

Starbucks, Dutch Bros, Dunkin Donuts.

What do you consider the category that these companies fall into? Coffee? Breakfast places? Not me, I call these the Money Traps. 

Every day, people value breakfast and their coffee. Breakfast is a whole other issue that I’ll tackle in the future, but for now let’s just focus on coffee. For most college students, coffee is the daily vitamin that you take in order to get through your projects and exams. It even gets to the point, (and this has happened to me) when you have withdrawals if you don’t have your daily dose. Because of this addiction that most people face, companies that specialize in making coffee drinks, are multi-billion dollar money printing machines. The cost to make a cup of coffee is incredibly low and they get away with charging incredibly high prices for their customers.

In 2019, Starbucks generated $21.4 Billion in sales… this comes out to $65.20 per man, woman, and child, both young and old. Spending money on coffee is by far, the most ridiculous commodity you can spend your money on. It doesn’t appreciate in value and once you sip down the last drop, your body just gets rid of it soon after anyway. You are essentially peeing out money that you didn’t have to.

You can easily make your own coffee at home for around $0.17 per cup. The cheapest coffee at Starbucks is a small sized black coffee for $1.96. That’s 11 times more expensive than what you can just make at home! My wife and I go to Costco and get 2 huge containers of ground coffee for $13. Even with having coffee every day, our coffee stash lasts us over 4 months… on just $13!

Just think about what all those savings could do for your retirement or investing portfolios. If you saved that $1.79 every day and instead put it into an S&P tracked ETF that would grow just 7%, after 30 years you would have just over $70,000! Compound interest is a serious matter that everyone should be taking advantage of. 

Once you become more frugal with these small changes, you’ll quickly be able to see that choosing the cheaper option doesn’t mean that you’ll sacrifice on the quality you’ll be getting. It just means that you have more money in your pocket that can work for you! And that is what all these posts in this section are about. I want to teach everyone who reads my blog that becoming more frugal doesn’t mean that you suffer, it just means that your wallet won’t suffer. In fact, it’ll make your money work just that much harder!

I think that’s a solid tip for today, I hope you learned something and that you stop buying coffee altogether in the future! Not for my sake, but for your sake. Thank you so much for following along and I’ll catch you on the next one!

Marcus

Categories
Portfolio Updates

Our Dividend Portfolio

Many people have different investment methods and strategies. There’s no one size fits all! The strategy that works for us (and when I say “us” I mean me since my wife trusts me to take care of finances) is focusing on high quality dividend growth stocks. For the most part, I look at companies that have been steadily increasing their dividends for years because it shows stability and gives me confidence that the companies have enough cash to pay out their dividends. I have 17 holdings at the moment and am always looking to increase the number of holdings as well as the amount in each company. My portfolio is only 3 months old, and this is just what I have so far. 

These are the companies that I’m currently invested in:

$ABBV – Abbvie Inc.

$BEN – Franklin Resources Inc.

$CSCO – Cisco Systems Inc.

$CWEN – Clearway Energy Inc.

$DUK – Duke Energy Corporation

$IRT – Independence Realty Trust Inc.

$KO – Coca-Cola Company

$LYB – Lyondell Based Industries

$MAIN – Main Street Capital Corporation

$MO – Altria Group

$O – Realty Income Corporation

$PFE – Pfizer Inc.

$SO – Southern Company

$STX – Seagate Technology PLC

$T – AT&T Inc.

$VZ -Verizon Communications Inc.

$WTRG – Essential Utilities Inc.

My sector breakdown is:

Healthcare – 12.2%

Information Technology – 12.0%

Utilities – 22.2%

Real Estate – 12.7%

Consumer Staples – 12.4%

Materials – 4.7%

Financials – 11.3%

Communication Services – 12.4%

With my current breakdown, my highest value sector is Utilities and that’s because I’ve found that the Utilities dividends tend to be very safe and consistent even though they have lower yields, which is fine with me. My Materials sector isn’t too high because I just have one company that deals in Materials. This is because I just haven’t found any Materials companies that have looked attractive to me yet. Again, I have criteria that needs to be met before I invest in a company. 

At the moment, I have roughly $500 in each company and I contribute $1,000 every month to the portfolio. My strict rule is that I DO NOT SELL! I buy shares in these companies when there is either a dip, or an ex-dividend date coming up so I can get additional dividends. I’m currently projected to receive $409 every year in dividends from the $8,200 portfolio I currently have which means my yield is just under 5%. I know for many of the dividend investors out there, this yield might be on the higher side, but I’m looking to get into more high quality dividend stocks in the future which have lower yields, but more stability. 

Again, this is just a basic level summary of my portfolio and in upcoming posts, I’ll speak on each of these and highlight why I am invested in each of them. I don’t just randomly pick companies, there is a method to the madness, I swear!

The goal for my portfolio is to be able to get enough dividends coming in every year to be able to cover the expenses that my wife and I currently have like our mortgage, utilities, and food costs. After doing the math, we would need $26,400 in yearly dividends in order to reach this goal and although I’m new to the journey, I’m excited to share the path we are taking with everyone who reads this blog. I’ll be learning a lot along the way and I look forward to sharing what I learn with all of you!

I’m going to end the post there so I hope you enjoy reading about my portfolio and I’ll catch you on the next one!

Marcus