My Scooter And Me

My scooter and me!

In my effort to live as frugally as possible while still maintaining a high quality of life I decided to purchase a used Yamaha Zuma 49cc scooter a little while back. Now that I've had a chance to really try this thing out I'm deciding to write this article as a report to anyone interested in such a move.

Early Retirement Isn't For Everyone

I don't believe in absolutes. Absolutism is especially unattractive when speaking in context to humanity and the human mind...which is prone to consistent fallacy. Absolutism is prominent in many areas of our society, including broader subjects like religion or politics. I find it disappointing when people truly believe that if you do not follow their religion that you'll suffer some kind of eternal punishment in an afterlife or if you are from a different political affiliation that you are inherently ignorant. This "I'm right and you're wrong" type of thinking is humorous to me. The fact that people actually believe they know who created the universe when they can't name the top 5 ingredients of their morning cereal is troubling to me. If you can't master Corn Flakes, you likely have less of an ability to master the meaning of life. I believe people suffer from egos when it comes to their own intelligence.

Where is all this going?

Well, I also don't believe that I'm any more right in dedicating my life to retiring by 40 years old than someone who wants to work until they are dead. I do not believe in rights or wrongs, only differences. I occasionally get emails questioning my sanity for wanting to quit work so early in life. This article is designed to dispel future emails and questions and make known my opinion on people who don't want to live frugally, invest or stop working at a young age. Honestly, and no sarcasm meant, I think that's a fine choice of living if that's what makes you happy. I believe most in being happy in life. If your current life is perfectly fulfilling and you love going to work for 40 or more hours a week then I say more power to you. It's simply not a life that I desire.

Recent Buy

The last month has seen round after round of headline news about slower growth, a "new normal" economy, Greece, eurozone debt problems and the like. All that talk and the S&P 500 is down 2.9% over the last 30 days. Not what most people like to see, unless, of course, you're a net buyer of stocks and accumulating assets for long-term investments at the cheapest price possible. Since that's exactly what I am, I'm buying.

As part of my Recent Buy series, I try to let my readers know of any equities I purchase soon after the transaction is completed. This is just one way I try to document my progress toward early retirement and financial independence.

Guest Post: How Frugality Has Forever Changed My Life For The Better

*This is the second guest post on Dividend Mantra. Pey Shadzi, a commenter and supporter of this site as well as a frequent author at Seeking Alpha, has provided an excellent article highlighting why he believes living frugally has positively impacted his life. You can follow Pey at his blog or at Seeking Alpha.*

I'm just going to charge right out of the gate and throw it all out
there: I'm a firm believer in living a frugal lifestyle.

Whether it be shopping around for the cheapest car insurance, walking
to the closest grocery store to buy items on sale or performing my due
diligence in order to secure the best deal on a piece of electronic
equipment, I certainly do not mind taking a little extra time in order
to save a few bucks. Generally I prefer to invest the money I save in
dividend-paying stocks that allow for passive income with the intent
to reinvest my dividends in reputable companies. Saving money in order
to magnify future returns... sounds like a pretty sweet deal, right?
In all honesty, I can't wait until that glorious day when I decide to
hang up my gloves and live the coveted life of a retiree... but I
digress.

Usually when I share this little frugality-fueled passion of mine with
others who have differing opinions about spending, I often hear some
of the same commentary about how boring my life must be or how much
excitement I must be missing out on due to the fact I choose to spend
my money wisely, rather than let it go frivolously. Having been an
American consumer who spent much of his money on unnecessary items
that really didn't add to a quality of life, I can truthfully say I'm
much happier being the frugal person that I am today.

I've Turned 30!

This past week I turned 30 years old! I'm already three decades old and probably have lived more than a third of my lifetime, yet I still feel young. Amazing how fast time flies by. It was an amazing birthday, and my best ever. On Friday night my girlfriend took me out for dinner and surprised me with some of my family members there at the restaurant waiting. It definitely shocked me, because I don't see my family as often as I would like. I moved to Florida from Michigan back in 2009 to get a little more sunshine in my life and, unfortunately, am the only member of my family currently living in Florida. They don't know what they're missing, but on the other hand I definitely miss them.

Recent Buy

It looks like we're starting May much the same way we started April: with weakness in the stock market. Headlines regarding the recent French elections, the never-ending eurozone crisis, Greece's possible departure from the zone and slower growth here and abroad has allowed volatility to rule the day and caused commotion for many investors. With some people heading for the exits, I'm running in the exact opposite direction. I'm buying what they're selling as I know that 30 years from now many high quality companies will be worth many times what they are today. With that said, I recently purchased additional shares in a high quality technology firm that I feel will reward me as a loyal shareholder for decades to come.

As part of my Recent Buy series, I try to let my readers know of any equities I purchase soon after the transaction is completed. This is just one way I try to document my progress toward early retirement and financial independence.

Income/Expenses For April 2012

Each month I will post my income/expenses for the previous month. I track every dollar in and out, so what you see is exactly what I earned and spent (rounded to the nearest dollar).

Dividend Income Update - April 2012

Another month has passed by, and it's time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it's pure numbers. It's hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one's expenses.

Below, you can see my dividend income from the month of April. Although not as high as March, it was still awesome to receive money from companies that are out there supplying the world with necessary goods every single day. I feel like every time someone buys a can of Coke or fills up their vehicle's gas tank I get a little piece of that transaction. Although the tangible dividend in my brokerage account is ultimately what I see and care most about, it still is nice to have that emotional and intangible feeling of being a tiny slice of the entire world economy and profiting from it.

I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It's easy to see these payments rising month after month and it shows that it's possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:

Freedom Fund Update - May 2012

Well, the time has come to update the Freedom Fund once again as we start another month. The Freedom Fund is my portfolio, and I think it's aptly named. My portfolio is my way to freedom; freedom from working at a job I don't enjoy to purchase goods I don't need to impress neighbors I don't care about.

I feel extremely fortunate and thankful that I'm able to post these updates every single month which shows the power of monthly contributions to investments because of the high savings rate I maintain. It shows how a relatively large sum of money can be built through the power of time, patience and perseverance.