Introduction

Welcome to the second Monthly update of the Beach House Project!! Where I walk you thru starting with ZERO to making your first $100K

They say making your first $100K is the hardest 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!!

On September 23rd 2023 I decided instead of just thinking about a beach house I was going to turn it into a reality! to do this I need to come up with a $100K down payment.

My Goals

it’s always good to be specific when you set out on a new project or journey so you know what success looks like, so lets refresh ourselves on what my goals are here.

Buy a beach house or have enough invested I can rent a beach house whenever I want anywhere I want without thinking about money

Specific Goals (The How):

$100,000
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

Progress Update

This month we made some meaningful contributions! but the market was also down! thankfully early in your investing journey down markets actually let you buy stocks at a discount which will supercharge your growth later on. as you can see my contribution of $394.70 in October dwarfs over my losses in the down market which were -$18.37 since I started this account in late September

This just goes to show how much of the first $100K is a hard cary by you! After $100K it gets a bit easier but that first chunk it going to be a bit of a grind.

October Contributions:

$200.00 Regular Income
$151.65 X Revenue
$42.50 Credit Card Points
$394.15 October contribution

and for my hard core dividend investors out there, Octobers dividend were $0.55 which isn’t much but not too bad considering the size of this account.

Todate we are down a Toal of -$18.37 which considering how rough October was in markets isn’t too bad.

that’s pretty much it for this month! as we we get further along into this project the updates will be more interesting as we compare the portfolio performance to other options and total gains in comparison to my contributions. but for now, I’m going to be doing a hard carry with contributions because with a dividend yield of $0.55/month we aren’t going to get very far very quickly. This is why I say not getting wipped out is more important than your rate of return, because when y our starting out it is far more important to preserve your principle contributions than it is to double or even 10X your returns ($5.55/month still isn’t going to get us a beach house!)

The Details

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 portfolio. I talk about 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
10% $VXUS Total International Fund

That’s it for this update! it’s only been one full month but I’m happy to see progress! Invite you to follow along on my journey so we can encourage each other! below are my socials, and a link to my newsletter! Catch you next time!