The Weekly Update

Update on my Frugal Freedom Funds!

• Frugal Freedom Fund up 13.5% (The DIVIDEND increased! and it's still doing better than the S&P 500, this motif is a true winner!)
• Frugal Freedom Fund Dividend up 8.3%

(I am not selling nor do not draw any commission on my Frugal Freedom Fund motifs.)

  

  

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November Dividends 2014

Well, it's been a month since I started reviewing Motif Investing. It has been a fun experience creating different Motifs with different themes, ideas, etc,  all for the cheap commission of $9.95

Now for the dividends . . .

Dividends

The dividends (total $5.68) have started to trickle in, with Apple ($2.24) and UBS ($2.26) being the dividend leaders in my little Motif account. As the account grows, so will the dividends. Most people are not impressed by dividends because the amount seems so small, but they add up. I plan on reinvesting the dividends and growing them exponentially. My investment philosophy is inspired by Warren Buffet, I intend to hold these stocks forever.

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Startup of the Week: HomeHero

Finding home care for your elderly loved ones is a challenging, time-consuming, and often heart-wrenching process. Agencies can be prohibitively expensive, and yet you're rolling the dice with high stakes indeed if you rely on Craigslist. Finally, there's a solution. HomeHero is an online marketplace that closely vets caregivers, matches them with clients, and then manages their relationships with ongoing support. CEO and Co-Founder Kyle Hill sits down with Jason to share his thoughts on the home care conundrum, his vision for the product.

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Vacation Planning: New Orleans Essence Music Festival 2015

LL COOL J CONCERT
(I took this picture!)

Hotel
I started planning for my yearly vacation to New Orleans for the Essence Music Festival.  I have my hotel booked. The hotel is booked for 5 days, 4 nights for $1,422.31. I plan on sharing my room with 4 People, which will be $355.58 each. The hotel includes a free southern (grits) breakfast,  free internet, and a pool/jacuzzi. This does not include Concert and Airfare.  

Concert
I looked at the 3 day concert ticket package and it ranges from:

• TERRACE LEVEL SEATS - Starting at $130.50 = $43.50 per day
• LOGE LEVEL SEATS - Starting at $235.50 = $78.50 per day
• PLAZA LEVEL SEATS - Starting at $300.00 = $100.00 per day

Because I'm  frugal, any concert tickets above these prices is out of my budget, there are some very expensive tickets closer to the stage.

Airfare
My airline of choice is Southwest (LUV). Southwest is my favorite airline,  I'm a stockholder and I genuinely love the service. The reservation calendar is not open yet for July 2015, but I've been buying the Southwest Giftcard, which is a travel hack that I learned about, that allows me to pay for the airfare in $50, $100, or $200 increments.

Food and Tours
I'll be updating this blog post with more information about food and tours.

Links:
The Frugal Guide to New Orleans
My $50.00 Cheap Seat Ticket for the Essence Festival.
Essence Music Festival Budget Calculators
Essence Music Festival Budget Tips
General Vacation Info: (all vacation info will be listed under this link)

Budget
My total budget is $2,250 or  less.

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Interesting Motifs of the Day

Since the market is closed today and I'm addicted to Motif Investing. I figure I would post a few of the more interesting motifs. It's good to see people trying their hand at investing.

Disclaimer: I am not invested in any of the motifs below, but I sometimes like to use my blog as a watchlist.

Single Mothers to Independent Mothers - (she made mad money! Plus dividends! You Go Girl!)

The Empire Strikes Back - (heavily invested in Alibaba stock. It is going to hurt when it crashes. I hope there is a parachute.)

 

Single Sister Soaring Stocks - (Sistah trying her hand at pennystock investing. Been there, done that. hated it.)

How Jay-Z Invests His Money - (this looks stable and very well diversified.)

 

Ritchie Rich Dividend Stocks - (who didn't love the cartoon? The dividends are impressive!)

 

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Video: I Need A Dollar

An Evening with Aloe Blacc

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$5.00 Millionaire

Just $5.00 invested monthly at the interest rate of 100% could make me a Millionairess in 14 years! A lot of folks discourage people from investing in the stock market because it is considered to be a gamble. Investing in stocks is not FDIC insured like the banks so there can be a 100% loss of money, so there is risk. That risk may be mitigated by diversification.

High Annual Interest Rate Stocks

There are many successful businesses (stocks) that have sustained a high annual interest rate over 100% - 500%, for years. Many investors are not afraid to invest in them.  Stable companies like Southwest Airlines which have over 100% annual returns. have doubled their investors money in one year. Impressive. Two investments in particular, This Motif and That Motif  focus on 30 high annual interest rate stocks (Avg. 1 YR RETURN 197.3% ). However,  these two motifs do not produce enough dividends, so I'm not invested in them yet. I'm a Dividend Growth Investor. My question would be, could a company sustain this type of return for the long term?

You could buy a motif of up to 30 stocks for a one-time fee of $9.95, instead of spending $238.50 in commissions to buy 30 individual stocks.

The $5.00 Breakdown

$5.00 monthly is $60 per year = $1.378 million in 14 years

$5.00 weekly is $260 per year = $1.492 million in 12 years

$5.00 daily is 1,825.00 per year = $1.289 million in 9 years

Use the calculator below:

But don't take my word for it, I'm not your financial adviser. Do your own research and due diligence. 

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Start Using a Basic Grocery List

I use these list below religiously and rarely go over $25.00.  The grocery lists feed a family of 3 for over a week. Always buy store brand and frozen vegetables. Frozen vegetables last longer. Get the store loyalty card for a few cents off.

The Chicken List
1 can Black Beans - 15.00  oz - 0.79
1 pack of Soup - Ramen Noodle - 0.25
1 Cut Okra or Corn - 14.00  oz - 1.77
1 Marinara Pasta Sauce - 26.00  oz - 0.88
1 Large Eggs - 1.00  doz - 1.99
1 Sweet Peas -16.00  oz - 1.77
1 Broccoli Florets - 16.00  oz - 1.77
1 Fresh  Chicken Drumsticks - 3.00  lb - 4.47 - 5.00
1 Fresh  Chicken Thighs - 3.00  lb - 4.47 - 5.00
1 Rice - Jasmine - 32.00  oz - 3.39
1 Tea Biscuits - 4.20  oz - 0.50 -.99
1 Cheddar Cheese Crackers - 7.00  oz - 1.00 - 2.29
1 Spaghetti - 12.00  oz - .99

$25 max

The Beef List
1 can Black Beans - 15.00  oz - 0.79
1 pack of Soup - Ramen Noodle - 0.25
1 Cut Okra or Corn - 14.00  oz - 1.77
1 Marinara Pasta Sauce - 26.00  oz - 0.88
1 Large Eggs - 1.00  doz - 1.99
1 Sweet Peas -16.00  oz - 1.77
1 Broccoli Florets - 16.00  oz - 1.77
1 Ground Beef - 3.00  lb - 4.47 - 5.00
1 Beef Stew - 3.00  lb - 4.47 - 5.00
1 Rice - Jasmine - 32.00  oz - 3.39
1 Tea Biscuits - 4.20  oz - 0.50 -.99
1 Cheddar Cheese Crackers - 7.00  oz - 1.00 - 2.29
1 Spaghetti - 12.00  oz - .99

$25 -30 max

The Fish List
1 can Black Beans - 15.00  oz - 0.79
1 pack of Soup - Ramen Noodle - 0.25
1 Cut Okra or Corn - 14.00  oz - 1.77
1 Marinara Pasta Sauce - 26.00  oz - 0.88
1 Large Eggs - 1.00  doz - 1.99
1 Sweet Peas -16.00  oz - 1.77
1 Broccoli Florets - 16.00  oz - 1.77
1 Whiting or Tilapia - 3.00  lb - 4.47 - 5.00
1 Salmon - 3.00  lb - 4.47 - 8.00
1 Rice - Jasmine - 32.00  oz - 3.39
1 Tea Biscuits - 4.20  oz - 0.50 -.99
1 Cheddar Cheese Crackers - 7.00  oz - 1.00 - 2.29
1 Spaghetti - 12.00  oz - .99

$25 - 35 max

The Vegetable List
1 can Black Beans - 15.00  oz - 0.79
1 pack of Soup - Ramen Noodle - 0.25
1 Cut Okra or Corn - 14.00  oz - 1.77
1 Marinara Pasta Sauce - 26.00  oz - 0.88
1 Large Eggs - 1.00  doz - 1.99
1 Sweet Peas -16.00  oz - 1.77
1 Broccoli Florets - 16.00  oz - 1.77
1 Egg Plant, Zucchini, or Squash - 3.00  lb - 4.47 - 5.00
1 Avocado - 3.00  lb - 4.47 - 5.00
1 Rice - Jasmine - 32.00  oz - 3.39
1 Tea Biscuits - 4.20  oz - 0.50 -.99
1 Cheddar Cheese Crackers - 7.00  oz - 1.00 - 2.29
1 Spaghetti - 12.00  oz - .99

$25 - 40 max

The Pantry List
1 Milk - 2.00
1 Vegetable Oil  - under 4.00
1 Salt, Sugar, & Spices  - under 4.00
1 Coffee or Tea  - under 4.00
1 Butter -  under 2.00
1 Mayonnaise - under 2.00

$19 max

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Subway's is having Customer Appreciation days!!!

$2.00 Sandwiches!!!

Subway's is having Customer Appreciation days!!!

I lunched on mine yesterday with my Subway Giftcard (my gift to myself)

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How Would LL Cool J Invest 1 Million Dollars

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How I Save $1 A Day.

I created a car maintenance account for my daughter so she can handle her car maintenance needs. She paid cash for her car, but she sometimes need "things" for her car.  So I setup a recurring deposit of $1.00 every day for one year, which would give her $365 a year for the upkeep of her car. At the end of the year, she can go and spruce up her car with the money and I start all over again. Pain free.

How to Save $1 A Day.

A lot of people have difficulties saving money for financial goals or a material goals, I found the simplest automatic solution at American Express Serve.

1. Open an account at American Express Serve
2. Schedule auto add
3. Automatically add $1.00
4. From:  Your bank or brokerage account
5. Frequency: Daily
6. Start Date: Today
7. End Date: 1 Year from Today.
8. Open a Sub-Account for your Child or Another person
9. Transfer that $365 into the Sub-Account at the end of the year.

The person will receive a card that look like this:
(you can open as many sub-accounts as you want)

The card comes with free road side assistance and other discounts.

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Trying to Keep Up with the Buffet's

Here are Warren Buffet's latest purchases and sales: I've added this Motif to buy next week.

Purchases

Purchased 2,641,083 shares of Charter Communications, Inc. (CHTR)
Purchased 6,532,015 shares of DIRECTV (DTV)
Purchased 449,489 shares of Express Scripts (ESRX) – NEW POSITION
Purchased 7,039,944 shares of General Motors Company (GM)
Purchased 304,034 shares of International Business Machines Corp. (IBM)
Purchased 534,461 shares of Liberty Global PLC Class A (LBTYA)
Purchased 665,400 shares of Mastercard Inc. (MA)
Purchased 205,600 shares of Precision Castparts Corp. (PCP)
Purchased 2,019,400 shares of Suncor Energy Inc. (SU)
Purchased 101,000 shares of Viacom Inc. Class B (VIAB)
Purchased 346,541 shares of Visa Inc. (V)
Purchased 1,588,034 shares of Wal-Mart Stores, Inc. (WMT)

Sales

Sold 1,275,233 shares of Bank of New York Mellon Corp. (BK)
Sold 883,234 shares of ConocoPhillips (COP)
Sold 3,978,767 shares of Deere & Company (DE) - SOLD OUT
Sold 919,918 shares of National Oilwell Varco, Inc. (NOV)
Sold 293,400 shares of Phillips 66 (PSX)

 

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The Weekly Update

Update on my Frugal Freedom Funds!

• Frugal Freedom Fund up 11.8% (Still better than the S&P 500, YAY!!!)
• Frugal Freedom Fund Dividend up 6.0%

(I am not selling nor do not draw any commission on my Frugal Freedom Fund motifs.)

  

  

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Being One Month Ahead

Most people live paycheck to paycheck, however the "experts" claim that you need to be one month ahead of your monthly bills, meaning you need to have one month of income saved as a cushion or buffer for bills.

I actually have my one month ahead savings in a checking account and I never let the account go below my "on month ahead" amount.

How did I save for this "one month ahead" account?

By severely living below my means for about 3 months. That meant getting paid and then taking a cool crisp $20 out of the ATM, neatly folding it and placing it in my wallet. This $20 would only be spent in case of emergency, all other money was paying bills, invested, anything leftover was saved.

For transportation back and forth to work, I had my monthly Metrocard. For lunch, I had the Executive Lunch

Thank goodness I'm not a fashionista!

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Tip of the Week: Alternative Credit Score

Aire, a London based, credit scoring company is providing an alternate credit score for people who are incorrectly classified because they have no credit history.

It's an interesting concept, but personally, I'm not too trusting of a company that has a "404 - Page not found" under the link "See the science behind Aire" on their technology page.

another option . . .

SelfScore, is an American based alternative scoring company which scores you by the 3 products you get from them like, Smart phones, a SelfScore credit card, and health insurance. It has potential to be a good place to start or rebuild a credit score. They have partnered with AT&T and are looking to partner with other retailers.

A SelfScore above 450 is considered Great, between 400 and 450 is considered Good, between 350 and 400 is considered Average and between 300 and 350 is considered Low.

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The Weekly Update

Update on the Frugal Freedom Funds!

• Frugal Freedom Fund up 10.3% (Still better than the S&P 500)
• Frugal Freedom Fund Dividend up 4.4%

(I am not selling nor do not draw any commission on my Frugal Freedom Fund motifs.)

  

  

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My New Investment:

Since I save half of my income, it only seems logical to invest my "half" into a motif that is making over 50% annual return. This motif invests in 2 stocks, Apple (AAPL) and Iron Mountain (IRM), so it is not highly diversified, but . . .

Apple is earning 52.7% annually
NXP Semiconductors N.V. is earning 80.5% annually.
Dividend Yield is 0.8%

Another high earnings option with more diversification:

Hawaiian Holdings Inc. is earning 116.2% annual
Southwest Airlines Co. is earning 118.8% annual
Apple Inc. is earning 52.7% annual
Digital Realty Trust Inc. is earning 55.5% annual
Iron Mountain is earning 56.4% annual
Dividend Yield is 2.0%

 

A high dividend option with more diversification: (I'm not really excited about the reds ), however the dividend yield is enticing.

Sandridge Permian Trust. is earning -20.9% annual
SandRidge Mississippian Trust II. is earning -36.1% annual
Cornerstone Strategic Value Fund Inc. is earning -16.4% annual
Iron Mountain. is earning 56.4% annual
Symetra Financial is earning 33.1% annual
Dividend Yield is 17.7%

 

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Cash Money Diaper

I had to post this funny money picture, LOL!!!

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Vacation Budget

Whether you're planning a vacation in Paris or New Orleans, the budget should be no more than 5% of your gross income.

How much should you budget for vacation? 
Spending more than 5% of your gross pay on vacations is living above your means. Below is a calculator that calculates 5% of your gross income. This figure will give your yearly budget for vacation. Enter your Gross Income and click the submit button.

This figure should include transportation, hotel or cruise, food, tours, concerts, etc . . .

Motif of the Week

I recently bought this Motif, a 12.4% increase in less than a month impressed me.

 

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The Weekly Update

Update on the Frugal Freedom Funds!

• Frugal Freedom Fund up 8.0% (Better than the S&P 500)
• Frugal Freedom Fund Dividend up 2.2%

(I am not selling nor do not draw any commission on my Frugal Freedom Fund motifs.)

  

  

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Snoop Dogg: Tech Mogul and Investor

I'm an avid reader of Adweek, the guide to marketing and advertising. So imagine my surprise when I saw Snoop on the cover, as the newly crowned Tech Mogul and Investor. I had just posted that he was one of the main investors of RobinHood. He is really making ground breaking news. Keep it up Mr. Broadus! Read the rest of the story here.

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Quote of the Day

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Financial Book Review

This is a great resource that I found on Youtube.

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Emergency Fund / Five-Year Plan

According to the experts, you need 3 months of Emergency Funds, in case all hell breaks loose. Please use the calculator below to calculate how much you will need in your Emergency Fund, it will calculate how much you need for 3 months. (make sure the $ sign is in the box)

My Emergency Fund total came to: $8400.00. This amount should keep MY head above water for 3 months. My plan is to save for my Emergency Fund, in small amounts, over a 5 year period.

Plug in your numbers and see what you come up with. (make sure the $ sign is in the box)

I need to save approx $64.00 a month for 60 months, if I decide to save monthly.  Your Emergency Fund must be completely liquid and readily accessible. Guard your Emergency Fund with your life and only dip into it in case of EMERGENCY!

UPDATE:  Mini Emergency Fund
According to my Emergency Fund Calculator, my 3-month Emergency Fund has been calculated to be $8,400. With that being fact, my one month Emergency Fund would be $2,800. Even that seems large for some people to save, so I'm going to create a Mini Emergency Fund (MEF).

$2,800 broken it down per day (7 days), with 30 days being the average, will be about $93.33 per day x 7 days = $653.33. I would need a minimum of $653.33 (Approx,$700) in my mini emergency fund for small emergencies, 1/4 of your monthly amount. I would recommend keeping the Mini Emergency Fund in cash at home and the remainder in a money market account.

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Monthly Investment Calculator

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Compound Interest Calculator

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