Hurray!
This past friday, I’ve accumulated my first $1,000 by cutting back on my lunch expenses…
Now , I’m looking at stocks that will pay at least a 5% dividend (and preferable around 6 or 7%). After the fourth quarter passes (I get my first dividend after the fourth quarter), I’ll be able to go out to lunch 1 extra day each month. Then after 25 more days, I’ll have another $1,000. After I have $2,000 dollars invested in dividend yielding stocks, I’ll be able go out ever other week. After another year passes, I’ll have enought money saved up to go out and entire extra day per week. That’s all I need, going out 3 time a week is plenty. If I keep the experiment up past 2 year, I’ll just keep saving the money in the lunch fund.
I’m kind of excited about this, I’ve always wanted to have a dividend fund like this since I was 19 years old. Of course, I’m not considering taxes, but I’m hoping that if I get a 6% or 7%, that will make up for my lack of tracking the tax.
Lunch Savings to date:
| Savings from | int. rate: | 5% | |||
| Lunch Budget | |||||
| Amt | Cumultive | Yearly | Monthly | Weekly | |
| 6/5/2009 | 40 | 40 | 2.00 | 0.17 | $0.04 |
| 6/12/2009 | 40 | 80 | 4.00 | 0.33 | $0.08 |
| 6/19/2009 | 40 | 120 | 6.00 | 0.50 | $0.12 |
| 6/26/2009 | 40 | 160 | 8.00 | 0.67 | $0.15 |
| 7/3/2009 | 40 | 200 | 10.00 | 0.83 | $0.19 |
| 7/10/2009 | 40 | 240 | 12.00 | 1.00 | $0.23 |
| 7/17/2009 | 40 | 280 | 14.00 | 1.17 | $0.27 |
| 7/24/2009 | 40 | 320 | 16.00 | 1.33 | $0.31 |
| 7/31/2009 | 40 | 360 | 18.00 | 1.50 | $0.35 |
| 8/7/2009 | 40 | 400 | 20.00 | 1.67 | $0.38 |
| 8/14/2009 | 40 | 440 | 22.00 | 1.83 | $0.42 |
| 8/21/2009 | 40 | 480 | 24.00 | 2.00 | $0.46 |
| 8/28/2009 | 40 | 520 | 26.00 | 2.17 | $0.50 |
| 9/4/2009 | 40 | 560 | 28.00 | 2.33 | $0.54 |
| 9/11/2009 | 40 | 600 | 30.00 | 2.50 | $0.58 |
| 9/18/2009 | 40 | 640 | 32.00 | 2.67 | $0.62 |
| 9/25/2009 | 40 | 680 | 34.00 | 2.83 | $0.65 |
| 10/2/2009 | 40 | 720 | 36.00 | 3.00 | $0.69 |
| 10/9/2009 | 40 | 760 | 38.00 | 3.17 | $0.73 |
| 10/16/2009 | 40 | 800 | 40.00 | 3.33 | $0.77 |
| 10/23/2009 | 40 | 840 | 42.00 | 3.50 | $0.81 |
| 10/30/2009 | 40 | 880 | 44.00 | 3.67 | $0.85 |
| 11/6/2009 | 40 | 920 | 46.00 | 3.83 | $0.88 |
| 11/13/2009 | 40 | 960 | 48.00 | 4.00 | $0.92 |
| 11/22/2009 | 40 | 1000 | 50.00 | 4.17 | $0.96 |
For those of you who might not have seen the earlier post about my Lunch Budget Experiment (I called it an Adult Allowance Experiment for the initial post), this is what I”m doing:
I’m cutting $40 out of my weekly lunch expenses by packing cheap (but still health) lunches. Then after the savings amount hit over $1,000 dollars, I taking the money saved and investing it into a stock that pays a dividend. I then use the dividend money to pay for the lunches I use to pay directly out of pocket. IMHO, the beauty of this is I don’t actually carve extra money from my earned income to pay for lunch. I’m just spend the dividend money I would have spent on lunch anyway. So after the first 2 years, I get a free weekly lunch via the dividend payments.
The next dividend producing funds that I’ll try to start are:
- Christmas fund.
- Home Improvements fund.
- Kids Allowance fund
- Vacation fund (this will be a hybrid approach, because it would take too long).
I would like to include a Car fund, but I don’t think I can build up a dividend producing fund quick enough…
Tell me what you think, and do you have any suggestions? Do you think I should stick to the experiment for 2 or more years?
-MR
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