Sunday, August 25, 2013

Deposits into the portfolio

Its been a busy relaunch for my blog and almost all of it has been focused on real estate. Where I stand with my rental property and how I calculate rental property yield. I've had to play catch up a bit with you as I have talked about stock and bond investing for over 2 years but nothing about real estate beyond REITs. I have a lot more to say but this isn't only a rental income blog.

My past public portfolios had weekly deposits. I felt that was the best way for new people to stay focused with their portfolio. Its a psychological hook that I had found useful in the past. I'm at a point now though where the dividends coming in are high enough that I am getting all the positive reinforcement I need so I don't need the weekly deposit model.

$250 Investing Deposit every 2 weeks.
This is how I will be doing my deposits. I get paid from my day job every two weeks on a Friday. The following Monday I will have $250 deposited into my investing account. Its an automatic transfer so there is no thinking about it. I have it right after payday so that I pay myself first. I've found that if I pay bills first then I don't seem to have enough at the end. But surprisingly the reverse is not the same. If I put money towards me first I find I still pay my bills. Its all those discretionary luxuries that get cut. I'm looking at you venti iced white chocolate mocha from Starbucks!

$250 Discretionary Deposit every 2 weeks.
I will have an additional $250 a paycheck be a discretionary deposit. The limit is fixed and will occur each time but where it goes won't be decided until deposit day. Perhaps savings, paying off the mortgage early, or into more stocks and bonds. While investing is my main focus and main wealth builder, I want some flexibility in meeting the changing markets and events in my life.

Excess Miscellaneous Deposit every 2 weeks.
There is the possibility of a third deposit into my portfolio per paycheck. It will depend on my expenses at the time. Its one thing to sit back and have a planned budget but life is an entirely different matter.  Gifts, cars breaking down, health costs. While I do want to pay myself first I cannot ignore that things will happen. So from time to time I will try to get even more deposited into the portfolio.

The first deposit is on its way. The discretionary deposit is going to starting an online savings account. I'll talk about that in its own entry on why I will have an online savings account separate from my normal one that my paycheck is deposited into.

Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. Replies
    1. Eventually at some point yes I want to. The portfolio isn't at a point I don't think where it can take on some trades. I don't even think it is large enough for a single SPY option to hedge. MAYBE the minis.

      I want the monthly income higher so it can pay for any trades that I might take on.

  2. Cool. I approach my budget and deposits in very much the same manner. I have a system set up so that no matter what I will deposit the minimum. Most months I'll have extra cash and can do additional deposits, use it for something fun, or even replenish my emergency fund in unfortunate situations.

    Flexibility leads to consistency which is key long term!