March 2018 Savings, plus other updates

Sorry, you’re probably getting fed up seeing this image again but I’m not! 🙂 Another premium bond win of £25 means three wins in a row (a ‘Turkey‘, if I was ten pin bowling!), a record for me!  Can I make it a four-bagger!?

At work, it was decided that despite the company not hitting their global year-end target, we would still be paid a bonus. That bonus was a whopping 1% but hey, I’m not complaining as that’s still more than zero. Anyway, with nothing better to do with it, I’ve invested the full bonus amount.

So, how did that affect my savings this month?

I saved 56.6%! My average savings rate has now gone up to 53%.  I however still haven’t gotten round to booking my holiday, plus I have a super-busy social calendar in April so the high rate may provide me with a bit of a cushion when my rate drops over the next month or so!

The above savings was topped up with my £25 Premium Bonds win, £62.81 affiliate income from OddsMonkey (thanks to all who signed up via my links!), £300 matched betting profits and £50 rent received.

As I don’t earn enough to max out my ISA (the max being £20k in a tax year), this past week has been spent shaking down piggy banks and scrabbling behind the sofa to find anything to top it up before the end of the tax year, due to the ‘use it or lose it’ factor.

I managed to find a bunch of old £1 coins so these have been banked – every pound counts and they went towards helping me pay £15k into my ISA. Last year, I managed this amount with the help of some of my redundancy pay (when the max for an ISA was £15k) so I’m really chuffed with this achievement.

I’m sure some of you might be wondering why I’m also paying into my Emergency Fund instead of concentrating on my ISA – well, I took a chunk out for ’emergencies’ last year so need to top it back up. Once I get it back up to >3 month’s worth of expenses again, I can chuck more into my ISA.

Shares and Investment Trusts

I started investing in HICL Infrastructure Company Ltd this month. Think that’s it for new investments for a while, I’ll just top up existing ones for the rest of the year.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

Wobbly markets again apparently. As before, I didn’t follow the daily ups and downs, just got the month-end figure for my update. My Future Fund stands at £130,574 – it’s down 1% from last month, but whatever, I’ll just continue investing as normal.

Dividends and Other Income

Dividends received this month: Continue reading

February 2018 Savings, plus other updates

Perhaps it was just as well that I had a frugal January, which was quiet and without incident, seeing as February was almost the opposite, though it was a mix of good and not-so-good.

Good Stuff

Several social outings with friends did the world of good to banish away some January blues!

Work has been manic but manageable –  the leadership team were over from the US, and my colleague and I were described as a ‘Dream Team’ – hope they remember that when they’re dishing out the pay rises, haha!

I received a surprise letter from a building society regarding a ‘failed’ PPI claim I’d made last year, which advised me that following the FCA’s updated regulations, I was actually entitled to payout so I received £74.40 – thanks very much!

Then, it was another month, another premium bond win, with £25 going into the pot with the other winnings!

Also, I kicked off my home brewing again as I had a ‘window of opportunity’ before work on my kitchen is finally completed. I’d forgotten how much effort it all takes but it was an enjoyable kind of effort and my kitchen smells like brewers hops now! A full update once I have a (hopefully) nice IPA to sample!

Chinese New Year came and went with its usual associated family expenses which were (mostly) budgeted for. May the Year of the Dog be a happy, prosperous and lucky one for all!

Not-So-Good Stuff

That first cold snap we had in the month, my boiler broke down so I was without heating and only intermittent hot water for 3 days. Fortunately, I still had the use of a gas fire, made the most of the shower facilities in my gym, plus the call out and subsequent repair was covered by my boiler plan.

Next, my PC of 8 years decided to break down. I spent 3 days trying to fix it myself (via youtube vids) but as I didn’t want to make the problem any worse, I had to call in an expert. The repair and replacement hardware took a chunk out of my emergency fund but it’s all running like new again so here’s to another 8 years.

Savings Stuff

So, how did I get on with my savings this month?

Ok, I saved 43% – not as bad as I thought it was going to be if I’m honest. My average savings rate now drops to 51.2%.  As I’ll be booking my holiday in the next month or so (which may turn into a ‘holiday within a holiday’), I’ll just need to keep a cap on some other spending over the next couple of months so my average doesn’t drop too much, though I won’t go full-out frugal again like last month (too soon!).

The above savings was topped up with my £25 Premium Bonds win, £74.40 from the PPI claim and £85.73 affiliate income from OddsMonkey (thanks to all who signed up via my links!)

Shares and Investment Trusts

I started investing in Scottish Investment Trust this month, for more diversification.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

The news in February was all about the crisis – I’m talking stock market, not KFC chicken, haha – which I pretty much ignored at the time.

What I do know is that at the end of the month, my Future Fund stands at £132,249 – yes, it’s gone down a bit from last month, but in line with my long-term plan, I’ll just continue investing as normal.

Dividends and Other Income

Dividends received this month: Continue reading

Good Riddance Dogs 2017, Hello Dogs 2018

Just my luck that as I reach the twelve month mark for my experimental Dogs of the FTSE portfolio, things go all pear-shaped in the markets!

Whilst I have largely avoided reading all about the hysteria, it was difficult to ignore the headlines describing the small downturn with words such as ‘TURMOIL’, ‘BLOODBATH’ and ‘CARNAGE’!

I didn’t worry about my Future Fund – I’ve no idea how much it’s dropped by as I’ll be running my usual numbers at the end of the month, but I did think about how it was going to affect my little Dogs portfolio.

Capita (CPI) in particular suffered in a spectacular fashion – I know it hasn’t been in the FTSE 100 for a while but they were one of the top yield stocks when I started the portfolio so I was committed to purchase and hold them for the year. Oh dear, indeed!

As a reminder, here’s the Dogs of the FTSE strategy:

  1. Choose the ten FTSE 100 shares with the highest yield (subject to my criteria*)
  2. Invest equal amounts in all ten shares
  3. Hold for a year (give or take a week)
  4. At the end of the year, sell the ones no longer in the top ten, replace with new shares with highest yield
  5. Repeat from step 3

[*criteria being that shares already in my portfolio are not included, nor any where a dividend cut has been announced]

Here’s how the 2017 portfolio finished:

Not pretty – Capita wiped out my total gains all by itself, yet back in July, it was showing a 25% gain, not including dividend paid. Gosh, I probably doomed the stock by saying that it was ‘showing its pedigree’ in that post – little did I know how the mighty would fall!

So, including dividends, only a paltry 1% gain for the entire portfolio! OUCH!

However, over this same period, the FTSE 100 Total Return was only 0.81% so despite the Dogs being a disappointing let down, they marginally did better, haha! Without dividends though, they seriously under-performed with a 4.35% loss.

What’s Next?

What’s next is the 2018 portfolio!

Oh yes, I’m going to put myself through this again in the name of err, ‘financial science’ and hope there won’t be Turmoil, Carnage or Bloodbaths this time round, nor any spectacular Capita-style demises!

So, in accordance with the strategy:

Dogs Set Free (Sold):

  • AstraZeneca plc (AZN)
  • Capita Plc (CPI)
  • HSBC plc (HSBA)
  • Intu Properties plc (INTU)
  • Royal Mail plc (RMG)
  • Standard Life Aberdeen plc (SLA)

Total received from sales = £1298.38

Total Dividends paid out = £76.96

Profit/Loss from original investment = -£92.45 or -6.3% – ouch!

It was not easy at all pushing the ‘sell’ button for some of those but I am committed to the strategy.

Dogs Rounded Up (Bought): 

  • BT Group plc (BT.A)
  • Imperial Brands Group (IMB)
  • Evraz plc (EVR)
  • National Grid (NG.)
  • United Utilities Group Plc (UU.)
  • Rio Tinto plc (RIO)

Wrong time to sell, right time to buy? Who knows!? I’m not timing the market.

So here’s how the Dogs of the FTSE Portfolio 2018 starting lineup looks as at 12th Feb 2018:

Best of breed or mangy mutts?

Hmmm…for some reason I don’t feel quite as confident as I did this time last year, but we shall see in 12 months time and as before, I’ll be doing quarterly updates.

Lessons Learned?

I’m not sure I’ve learned anything from running this experiment after just one year, though I must say that I thought the portfolio was going to do better. I guess if I hadn’t been following the strategy, I’m not sure I would have sold some of those stocks.

Let’s see how it goes after a few more experiments.

January 2018 Savings, plus other updates

Anyone do ‘Dry January’? Although some of my friends and family did, I didn’t bother. Since I don’t drink during the week, I see little point in depriving myself at weekends. Apparently, my sister failed on day THREE, haha!

Anyway, this month I tried to lead a frugal nun-like existence. That meant turning down social events, no eating out/takeaways (massive assumption here that nuns don’t have social events, eat out or have takeaways…).

My only purchases were basic groceries (including necessary toiletries), a gift voucher (for nephew’s birthday), stamps and a pair of socks. No January sales for me.  Packed lunches for work, except for perhaps on 4 occasions where I spent less than £2 on my lunch.

On the one hand, it felt great knowing that I was going to save more of my salary this month. On the other, the frugal existence didn’t make me feel too happy and in the end, to preserve my sanity, I succumbed and forked out to see the latest Star Wars film at the cinema.

I think I already have my expenses and spending down to a decent level allowing me to save/invest whilst enjoying life – there was probably no need for me to do a frugal January but I thought I’d try it anyway. I have to say it’s not something I’ll be attempting again in a hurry, not to this extreme.

So, did my being very frugal affect how I much I saved in the first month of the year?

Yes, because I saved 59.3% – it could have been more if I didn’t have some December expenses on my credit card bill.

I know, I know…imagine if I could do this every month! But no, living like this isn’t something I would choose to do long-term, even knowing that it would help me achieve my goals quicker. I guess I’m just not in that much of a rush!

The above savings include my £25 Premium Bonds win, £16.32 from TopCashback*, £63.22 from Google Adsense (my annual payout!), £71.16 affiliate income from OddsMonkey, £130 matched betting profits, and £50 rent received.

Shares and Investment Trusts

I started investing in Witan Pacific IT this month, for some diversification.

Current share/IT portfolio can be found here.

(Entire portfolio here)

Future Fund 

The rise of sterling and small wobbles in the market caused my Future Fund to stay pretty much the same at £133,045, despite the capital injection this month. Whatever, I’m just going to continue investing anyway.

Dividends and Other Income

Dividends received this month: Continue reading