Income & Expenses October 2014

A little bit delayed I’m publishing my income and expenses for the month of October:

Rent (incl. groceries): -€ 1.000,00
Gym membership: -€ 109,00
Garage: € 0,00
Health-insurance: -€ 74,89
LC insurance: -€ 16,57
Food @ work: -€ 51,30
Restaurants: -€ 93,00
Entertainment: -€ 33,00
Sports: -€ 20,00
Food: -€ 6,75
Household/Drugstore: -€ 11,80
Mobility: -€ 24,00
Credit Card: -€ 257,73
Banking fees: -€ 15,84
Vacation: -€ 52,00
Total Expenses: -€ 1.765,88

Income: € 3.726,02

Saving rate: 47,4 %

My expenses in “Rent” category were higher than normally because we had to buy/repair some things in the flat, so my girlfriend and me transferred a little bit of extra money to the shared bank account, where all expenses related to the flat are settled. The other costs are quite normal, except a new category “Mobility” – for the first time since April, when I sold my car, I had to go for a longer distance. So I checked some different possibilities making a 500 km trip. Train was very inflexible and would’ve cost something around 100 Euros; car rental would have been more flexible but not cheaper so I decided to ask within my family and voilà one of my familymembers wasn’t in need of the car for that weekend so I could borrow it almost for free; I just had to pay for gas and as I divided the total costs for that by the people who were in the car, it cost me just 24 Euros. The VISA and vacation expenses are some after-effects from September… in total I’m very happy with the expenses in that month, because even with an unexpected expenditure of 300 Euros my total expenses were not overwhelming shocking.

Recent Buy: TD

I quickly update my current portfolio — yesterday, I bought some shares of Canadian bank Toronto-Dominion Bank. TD has a long history; founded in 1855 as Bank of Toronto and merged with Dominion Bank in 1955, this company is currently the second largest banking institute of Canada. The bank has operates in typical banking segments and has a couple of business units and subsidiaries:

-TD Asset Management
-TD Auto Finance
-TD Bank
-TD Canada Trust
-TD Commercial Banking
-TD Insurance
-TD Merchant Services
-TD Securities
-TD Waterhouse
-Symcor (33,3 % share, together with Royal Bank of Canada and Bank of Montreal)

I wanted to add another company from financials sector to my portfolio, because I want to increase my financial holdings up to 15-20 % of my portfolio and Toronto Dominion Bank is one of the more solid banking firms. They’re paying dividends for ages and didn’t even cut it during the latest financial crisis. And I think also the overall figures are looking good, as far as I can evaluate it.


These are the charts and bars I like; BVPS increasing, EPS increasing (at least the last five years), continuing dividend increases and a solid payout ratio. Currently the stock yields 3,4 % which is also nice.

Bought 53 shares @38,92 €


Dividends October 2014

It’s almost unbelievable but the first month of the last quarter of 2014 is practically over. And as the month’s almost gone, it’s time again to summarize my income from dividends of this month. As always in the “first months of the quarter” dividend postings, I have to tell that the last month wasn’t very exciting because most of my holdings pay out their dividends either in the 2-5-8-11 or 3-5-9-12 rhythm and the companies paying out in October are not the ultimate high-yielder in my portfolio. But I think from now on also this weak 1-4-7-10 months start to make fun from an absolute income point of view.

In October I could collect a little bit more than € 50 from dividends – yes, still not an amount you can do great things of it, but compared to last year’s October (€ 10,75; +372 %) and the last “weak month” of July (€ 35,72; +42 %) the gain’s impressive! And also this year’s total income is getting a little bit more tangible – so far I received € 573 after taxes. And with 573 Euros you could already buy some nice little things (for example: a flight to Bangkok, a tablet, any kind of fashion or other crap I don’t need actually), it’s also more than 25 % of that amount I usually buy stocks (~€ 2.000).

A short summary of October’s dividends:

Pepsico € 12,35
Coca Cola € 12,63
Cisco € 12,27
General Electric € 13,50
Total: € 50,75

Today, I bought DIS!

Well, it’s not a huge dividend-machine, but I like Disney anyway. I think all of you know at least one Disney-character (Mickey Mouse & Co); many of you saw at least one movie which was produced by one of Disney’s producing companies (eventually one of recent X-Men or Spider Man The Avengers or Iron Man ;) movies), have been to one of the theme parks around the world (USA, France, Japan…), played a video game, saw a football game on TV (ESPN, abc) or bought something, Disney owns the license of (cups, magazines, bedclothes, lamps and millions of other stuff).

And of course, I like the figures:


You can see that book value inreases for one decade, EPS also climbed up constantly, so did the annually paid dividend ($0,86 per share in 2014). There’s much room for dividend-growth as the payout ratio is pretty low at 22 %.

Bought 30 shares at € 66,58.

Income Expenses September 2014

One month just passed by and we’re heading to the last quarter of the year… time goes by pretty fast. As September is over, I’m going to update my monthly income & expenses list, unfortunately it’s not 100 % accurate because I had so many days off from work, where I did so many things more interesting than tracking every penny. My VISA credit card bill for September is also not included, so there’s a kind of expeditures-delay of one month (something around 250 €) will occur.

Here’s a rough overview:

Rent (incl. groceries): -€ 700,00
Gym membership: -€ 109,00
Garage: € 0,00
Health-insurance: -€ 74,89
LC insurance: -€ 16,00
Food @ work: € 0,00
Restaurants: -€ 84,00
Entertainment: -€ 51,00
Food: -€ 26,42
Bike: -€ 5,00
Credit Card: -€ 109,00
Misc: -€ 35,30
Vacation: -€220,00
Total Expenses: -€ 1.430,61

Income: € 2.545,00

Saving-rate: 43 %

According to a “month of high expenses” my expenses were inline and not overwhelming. The saving-rate of 43 % is below my goal of 60 %, but September was a low-income moth because I had so many days off. From October onwards, my income should increase again which has also a positive effect on my saving-rate.

Dividend income September 2014

*Fanfare on*

In September, my income from dividends reached a new all time high and from now on I’m happy to earn more than € 100 every end of each quarter. 128,34 Euros have been transferred to my brokerage account from not less than nine individual companies. Here’s the overview (all figures after taxes and fees):

Wells Fargo: € 10,67
Pfizer: € 15,40Unilever: € 17,03
IBM: €  9,49
Chevron: € 15,37
DuPont: € 13,45
McDonald’s: € 13,92
Total SA: € 18,21
Coach: € 14,81

It’s really a good felling to know, that I don’t have to do anything more than wake up in the morning for 30 days in a row, to receive more than € 100.  Compared to September 2013’s dividends, it’s an increase of 629 % – Year 2014 total income from dividends is € 550 now.

Recent Buy

I am a little bit stressed at the moment (work *uff*) and cannot update the pages as I should and would; but I bought 110 shares of Cisco Systems last week. CSCO is quite a while on my watch list, since the stock price dropped dramatically at the end of last year, as Cisco was facing some issues in China. Unfortunately I didn’t buy back then, when Cisco cost € 15,00 — now I had to purchase Cisco for € 19,66 close to the 52-week high.

Cisco was able to increase EPS as well as BVPS during the last decade; Cisco may pay out dividends just since 2010, but increased it year by year – and the payout ratio is still way below 50 %. All in all I’m confident that Cisco was a good investment, even if it was not a cheap one.


Should I dump my emergency account?

ECB recently announced to decrease interest rates by 0,1 basis points to 0,05 % . What does this mean to me, a tiny little saver, who has sitting 4 to 6 times his monthly expenses in an online banking account, gaining something around 1,0 % in interest per year? Well, I’m going to receive a notification from my bank, that they are happy to announce that my interest rate will be something around 0,6 % p.a. but “they are still happy to offer such interest rates, which are above average”. Erm… great!

Due to that, I’m thinking about to dump these accounts (I have two accounts, my daily account which earns 0,8 % p.a. and one with a rolling 3-month fixed interest rate of 1,05 % p.a.) and invest it also into stock market. I try to make a short pro/cons list, which would make sense… probably.

What’s the idea behind my emergency account? The initial and main idea was to have a little safety net in case of losing my job. Currently, it doesn’t seem that I’ll get laid off in near future, but you never know what happens within a company… But how would such a layoff affect my financial situation? The biggest impact would be the missing income of (averaged) € 4.000 per month. I checked my latest unemployment benefits account and saw, that I would receive € 1.460 per month. That’s enough to live off for a couple of months, but I’m currently spending € 1.900 per month – which would decrease of course in case of an unemployment as I wouldn’t go to restaurants that often or do so many fancy holiday trips. I think I could live pretty comfortable with € 1.460 per month, but let’s assume I need a little bit more – maybe 300 Euros per month. My account balance is somewhere around € 11.000 at the moment; I could add 300 Euros per month for three years! That’s a quite long period of time – and I do not hope to be unemployed for such a long time. I could withdraw that money whenever I needed it without any costs or any other restrictions.

Another consideration when I opened the savings account was, to be liquid in case of bigger one-time investments like repairs, purchasing something essential like a new fridge or washing machine, health related expenditures like an urgent operation, etc.

Well, I sold my car in April so I do not need a lot of money for repairs. What could happen in my household? I have one bike, I have a fridge, a washing machine and gas heating. I don’t know exactly what a repair of one of these things would cost, but in general way less than € 600 – in case of the gas heating — which would probably the most expensive repair — my landlord is obliged to pay for the basic function of it. So if the boiler breaks, I wouldn’t have to pay for it. As long as I have a job I could pay for such repairs/purchases without touching the money of the emergency account. My saving-rate would suffer a little bit, but the money on the bank isn’t required at all.

What else? Health issues; in my country everyone has social security (even in case of unemployment, btw) which secures a basic medical care in case of illness or accidents. But of course our country develops to a ‘two-class society’ where the ones who could pay for something like a medical treatment on their own benefit more than the ones who couldn’t. For that reason I also own a private health insurance which costs 75 Euros per month. In case of a surgery or any other medical treatment I have the possibility to choose my own doctor and/or hospital (and in case of such an private-care, doctor’s fees are pretty high). In case of an accident or serious illness, my insurance would pay for my recovery as well as for the stay in hospital, etc. But in worst case I could be reliable to pay a contribution up to € 1.000 (e.g. if I want/need to stay in a private hospital twice per year or more often).

I think these three points — unemployment, repairs, health — were the main reasons why I created my emergency account. And now I see that I don’t need 6x my monthly expenses sitting around at maybe 0,6 %. What to do? My last idea was to put that money into an Index All World ETF. Also as a kind of emergency fund. I don’t know what could happen, but if I would need 3.000 or 8.000 Euro at once, I could sell this ETF immediately and I think, that an all world ETF is of stable value, even over a short-term period. And even if an all world ETF has one or two minor disadvantages (annually costs and high transaction costs in case of a withdrawal as well as probably some companies I don’t want to invest directly like tobacco and weapon manufacturing companies, companies that are excluded by the norwegian sovereign wealth fund) I think it’s better to invest it there than in single stocks, also from a psychological point of view. I think, it would be easier for me to sell an ETF in a case of emergency than to think about “which company should I sell now? — I need the money”.

I also picked on ETF as it’s not as easy like in US here in Europe. I don’t have access to these very cheap Vanguard ETF’s which can be held in an tax advantaged account. :( One of the cheapest I found is this one, at least it’s issued by Vanguard.

Vanguard FTSE All-World UCITS ETF (USD)


I don’t know if it’s a good idea or not to dump my emergency account and invest the money in an All World ETF instead, but it’s a consideration. Would be interesting what you readers think about that idea or emergency accounts in general. Do you have one? How much interest do you get? What do you think about the loss of money at current interest rates?

Income and Expenses August 2014

My income and expenses in August were as follows:

Rent (incl. groceries): -€ 700,00
Gym membership: -€ 109,00
Garage: € 0,00
Health-insurance: -€ 74,89
LC insurance: -€ 16,00
Food @ work: -€ 2,00
Restaurants: -€ 130,00
Sport: -€ 10,00
Entertainment: -€ 65,70
Pharmacy: -€ 4,85
Healthcosts: -€ 225,00
Food: -€ 31,00
Household: -€ 36,00
VISA: -€ 911,00
Public transport: -€ 365,00

Total expenses: -€ 2.680,44

Income: € 3.604,82
Cash deposit “Coins”: € 335,64
Total Income: € 3.940,46

Saved Money: € 1.980,00

Saving-rate: 50,25 %

In August, I had a couple of days off (three weeks to be honest…) from work and therefore I had a lot of time to think about my budget and improvement of it. After checking my “Rental bank account”, that’s the account where all flat-related stuff like the rent itself, insurances, internet, gas and power, heating, groceries etc. are withdrew, I noticed that these account has a pretty decent amount of money on it. Initially, I wanted that account +/-0 at the end of each month, as I don’t receive any interest on it and every extra Euro on that account is an Euro too much. So I decided to reduce my share to € 700 each month for the rest of the year and see if the amount on this account will melt a little bit.

And as I wasn’t working that much in August, I practically had no expenses for lunch at work, my expenses for restaurants were therefore higher as in July but not exorbitantly high.

The highest expense in August was the payment for a trip in September and additional health costs were also pretty high, as my dentist advised me to replace some fillings and I didn’t want the standard amalgam fillings (which would be for free), so I had to pay extra as these fillings are not covered by one of my health insurances. Also my annual public transportation ticket was re-issued and that cost me 365 Euros.

On the income side I could enter 300 additional Euros into my books, as I robbed my piggy bank full of coins – and surprisingly 335 Euros were in it! Not bad for, I think something little more than one year, of putting coins in it.

I saved 1.980 Euros, that means my saving-rate is quite exactly 50 % which is okay considering the one or other one-off payment in August.