Month 15 Update: November Beach House Fund – Journey To The First $100K!
November 2024 Update:
Table Of Contents
Introduction
Welcome to the November 2024 update of the Blind Luck Beach House Project!! Where we show you hot to go from $0 to $100K!
They say making your first $100K is the hardest because it requires your to change your money habits and build systems to accumulate wealth. and
Once you’ve done it you’re 1/3 the way to a million because the compounding effect of just getting started is huge!!
For a detailed write up on why the first $100K is so important plus a some handy calculator tools showing you how long it will take check out this months post How Long Will It Take To Make Your First $100K?
My Goals
When I first set out on this goal in September of 2023 I knew it was going to be a multi year process. I also knew the first year would be the toughest as I worked on getting some momentum going on this so I set some specific and measurable goals.
I outlined this process in my S.M.A.R.T. Goals What They Are & How To Use Them post. You can also find a good example of goal setting in my 2024 New Years Goals update where I write down and break down the details for my top 5 goals for 2024. (Which include this The Beach House Fund of course!)
So let’s revisit the Beach House goal, and how we are doing on our journey.
Goals - High Level
Buy a beach house or have enough invested so I can rent a beach house whenever I want anywhere I want without thinking about money.
Specific Goals (The How):
Have $100,000 Invested for a down payment
Within 5 years (by end of 2028)
Monthly Updates for accountability
Show others how to start from $0 and become financially independent
What I want to do is encourage anyone who has $0 to get started, and make a life changing amount of money
In 2024 the main focus is going to be to save $10,000 by the end of the year.
Now you might be scratching your head. $100,000/ 5 years is $20,000/ per year. Why isn’t that my number? well 2 reasons
Well that’s actually a good question.
The math says I should have by the end of 2024 $15,984.50 or roughly $1,384.48 / month moving forward. (This assumes a consistent 8% return.
I did this math in my Milestone #1 Check-In Post you should check it out I have a nifty monthly contribution web calculator you can use for your own planning purposes.
Updated 2024 Goals:
Goal: $10,000 by end of 2024
Stretch Goal: $15,984.50 end of 2024
With only 1 months left in 2024 I’m coming up short on my stretch goal, But my original goal of $10K by the end of 2024 is within grasp. I just need to put a strong contribution in for December. I need to play some catch up in 2025, but the key is we’ve started, and we are making good progress.
Progress Update
In November 2024 I made the following contribution. .
November 2024 Contributions:
$645 Regular Income
$96.57 CC Cash Back
$32.27 X Ads Revenue
November Total: $773.84
Fund Total: $9,066.09
Tis is great Progress, I’m well within the $10K goal for the end of the year! what’s even better is when I hit $10K M1 Finance will waive their $3/month platform fee which was recently introduced for accounts with less than $10K balance.
Total progress to date!
The Details
Over all the first 14 months of the Beach House Fund the markets have been quite strong, which have helped us along with our anemic contribution rate.
$7,938.85 Total Cash Contributions
$1,127.41 Market returns (Including Dividends reinvested)
Portfolio Total $9,066.09
Good progress to our $10,000 milestone.
Also this is the first month my portfolio has shown profits >$1,000 which is a nice little victory! its goos to see they money I contribute every month is starting to pay be back.
Keep in mind markets tend to go up and down and this number could go negative at some point, but for now we are looking at a nice profit in the short time this portfolio has been active.
What I’m invested in
Investment Allocations
In my original post for this project I outline the strategy behind my allocations, you can use whatever you’re comfortable with. Personally I feel safest with a well diversified index fund based portfolio.
I go over what risks I’m trying to manage in My Simple 3 Fund Strategy article. Do your own research everyone’s life situation and finances are different.
I’m a slow and steady kind of guy when it comes to investing but I also have healthy emergency fund reserves so I can tolerate some volatility.
As a quick reminder here are my target allocations.
70% $VOO SP500 Fund (S&P500 fund)
10% $SPHD (SP500 High Dividend Fund)
10% $JEPI (JPMorgan Equity Premium Dividend Fund)
10% $VXUS (Total International Fund)
One of the reasons this portfolio has been so successful today is I’ve stuck to these allocations, instead of trying to time the market I’ve focuses on contributing as much money as possible every month and letting the indexes do their thing. It’s simple, it’s proven, and it’s a low stress way for me to invest allowing me to put my time towards other things in life.
That’s it for this month! subscribe to the newsletter to get the monthly update on the beach house fund, We’ll be hitting $10K soon!