One month in, the portfolio is taking shape
Here's where my $10 daily deposits went, and the plan from here
After my first full month as a market participant, I’d say it’s about time for a portfolio update.
That’s how this works, right?
When I started building the thing back in mid-January, I was depositing $10 every day the market was open. I then turned those deposits into assets, making fractional purchases of Schwab’s dividend-growth ETF, SCHD.
It was working great, too … up until President’s Day rolled around. I was happy to take a breather for the first couple of weekends — getting away from the market for a few days is never a bad idea, especially when it’s all you think about — but three days in a row got me kinda itchy, to be honest.
Maybe twitchy.
It’s not like I’m addicted to investing or trading, waiting for the market to open so I can yolo whatever I have on that particular day into a meme stock or, better yet, that same meme stock’s options contracts.
I’m addicted to the idea of financial freedom.
I’m obsessed with building something sustainable from the ground up — something I can use to create the life I want to live.
I’m determined to prove you don’t have to be a finance major to create life-changing wealth in the stock market, either. Investing isn’t some kind of economic enigma; it’s anything but convoluted if you sit down and think about it.
Simply put, the stock market is a money-making tool. More specifically, it’s a place for your money to make money.
That said, when the market was closed to celebrate George Washington’s birthday, essentially stretching the weekend into a third day, I felt like I’d missed an opportunity by not at least depositing $10 into my account each day. I mean, my uninvested cash is earning 5.25% after all. It’s almost irresponsible for me not to at least put a little toward a brighter financial future on the weekends, too … right?
Right.
That said, the march toward a $1,000,000 portfolio is now, officially, a daily one.
Here’s where things stand 30 days in
My first full 30 days in the market were productive.
My money made a little money and, more importantly, I’m starting to pick up some steam. I know $10 doesn’t seem like a lot and $300 isn’t exactly eye-popping, either, but the small, daily deposits are adding up.
Here’s where the money went:
I invested in SCHD 25 times
I invested in Microsoft two times
I invested in Robinhood twice
Once, I didn’t invest in anything, opting to let the cash earn interest.
This brings me to the first screenshot I’ll share along this journey that’ll serve as proof my money is making money (This post’s featured pic, while moving up and to the right, illustrates unrealized gains). The interest income highlighted below is the real deal, though:
Hey, it’s not a lot, but it’s money I can turn around and use to invest with.
Here’s a peek at my positions as of today (March 1).
My SCHD position, which makes up about 90% of the portfolio, is worth a little north of $250. I have about $20 worth of Microsoft, $20 more of Robinhood, and a $10.03 cash balance thanks to the most recent interest payment.
I know … ballin’.
Seriously, though … you have to start somewhere.
The plan from here: more of the same.
Every day (weekends, too) I’ll deposit money into my Robinhood account. That money will then go into one of four different places depending on the day:
My SCHD position, which I plan on using as a compounding machine. I’ll earn a quarterly dividend for every share I own. As I continue to invest, that dividend, which I’ll reinvest or use to add to other positions, will only grow.
My Microsoft position, which I own for its exposure to cutting-edge technologies, the gaming industry, and its dividend-growth characteristics. The tech giant, which is also one of the most diversified companies you’ll find, pays a $3/share annualized dividend. The yield won’t blow you away (0.73%), but it’s by design. The payout ratio is also low, just 25.86%, and the company has boosted its dividend for 19 straight years, most recently by an average of 10.20% over the last five.
My Robinhood position, which I have for growth and, potentially, an options strategy down the road. Robinhood changed the way people invest forever. It’s the only reason I can approach things the way I do in the first place, too. Imagine if I had to pay a commission every time I made one of my daily $10 deposits. The commission-free model Robinhood ushered in makes it all possible. I like innovation and, well, I think Robinhood is as innovative as companies come.
My cash balance, which, thanks to Robinhood, is earning a cool 5.25% APY. If everything else is up, I may opt to just let the cash earn some interest income while I ponder my next move.
That’s it … at least for now.
I’ll consider adding more positions opportunistically down the road, but I like the stable of horses I have right now. My focus will be on building my SCHD position while adding to Microsoft and Robinhood on the dips.
Simple.
Click here to see my portfolio, which I update daily.
Are you a market participant?
There are more than a few ways to make money in the stock market, but you can’t take advantage of any of them if you don’t participate. Don’t have much money? Me either. I mean, I’m not investing huge chunks at a time — $10 every day — but it adds up fast. Consistency is key and, if I can build a million-dollar portfolio, anyone else with a phone, internet connection, and a little disposable income can, too.
If you aren’t already, start investing today.
Need a brokerage?
Investing is impossible without a brokerage. If you’re in need, I recommend Robinhood. Sign up with this link and we’ll both get a little something to brighten our financial futures. The best time to start investing was yesterday. Today’s the next best and, well, if you don’t start today I highly encourage you to pencil it in for sometime soon. Your future self will thank you.
Disclaimer: I’m a market participant, not a financial advisor. This is not financial advice … but it could change your life.