Here is an update on the visual progress of the passive and semi-passive income streams, as of the conclusion of 2012. For this exercise, I am including all of my income streams, even those held in retirement accounts.
Income Streams
- The Roth IRA and 401k paid dividend distributions throughout the course of 2012.
- For the dividend portfolio, the first dividend was not received until March. Therefore, the average is computed using only 9 months, instead of 12.
- The rental property started generating income in August. The monthly average is calculated using the typical cash flow seen in 5 months extrapolated over the course of a full year (both installments of property taxes are accounted for).
Results
The passive and semi-passive income streams are currently providing $777/month in income. This covers slightly more than 1/2 of my monthly expenses ($1500/month).
I love how organized you are! I aspire to do the same one day 🙂
It is actually more of a chore for me to get organized financially but I do the best I can.
Lisa,
Thanks! I do my best to stay organized, especially since there are so many accounts floating around. With work stress and a fast pace life in general, it’s easy to start losing track of things. So, I try my best to stay on top of things.
I really liked your Financial Goals for 2013 post. That was especially well organized and clear. It looks like you are already doing a great job of staying organized financially. 😉
Best wishes!
That’s a nice little flow chart you got, and the best part about it is the amount of passive/semi-passive income amount. You’ve got half you monthly expenses covered and you are just barely onto your early FI path. Congrats!
JC,
Thanks! Yeah, just knowing I’m half way there provides a nice little psychological boost. Ultimately, I want to reach $1500/month without factoring in retirement accounts. But I’m still new at this, and very much in accumulation mode, so I’m going to count every last penny for the time being. Eventually, it would also be a good idea to overshoot the target and have some extra margin of safety.
Cheers!
$777 x 12 = $9,324
Wow! I saw about $1,500 total in dividends across all of my accounts in 2012 and since I’m not doing dividend investing, I doubt I will get much over $2,000 if at all in 2013. That chart is pretty cute!
Leigh,
Thanks! $5400 of that is coming from the rental property, which is doing the bulk of the heavy lifting. Congrats on achieving $1500 in 2012. I hope you exceed $2000 in 2013. Investing is a slow process, but the results are definitely worth getting excited about.
Best wishes!
Well done FIF! Love the chart you made!
CI,
Thanks! I enjoy looking at it 😉
Take care!
FI Fighter, You’re doing great my friend. Keep it up. You’re far ahead of probably 99.9% of people your age. That’s really something to be proud of. At this rate you’ll have a world of options at your fingertips in a few years. Certainly makes the daily grind a little easier to swallow. You know you’re already at a passive income level that would make it pretty easy to semi-retire. You could probably work part-time for the rest of your life if you wanted and still save money. Great to know that the option is there for you at such… Read more »
DM, Thanks for the kind words and encouragement! I certainly do hope all the great possibilities that life has to offer will fully open up once I reach early FI. Don’t get me wrong, life is already plenty great now, but without a doubt, sometimes I wish the accumulation phase would move a little quicker. Thought I guess there’s a reason for that. The things worth doing and achieving are never easy, and for good reason. One has to know all about hard work, sacrifice, and struggle to truly appreciate what they have. Keep up the great work yourself! Semi-retirement… Read more »
FF, I like this visualization. I once created my own to post it, but never did. I changed my mind. Now I see it was probably a mistake since it looks great!
Martin,
Thanks! Well, it’s not too late, so you can always re-post it on your website. I’d be curious to see what you came up with.
Take care!
Pretty nice results FI I like the graphic. I think you will find that your rental property provides more instant results for you than the dividends. I look forward to seeing your progress.
Marvin,
Thanks! The immediate return from the rental is more than what I’m getting for dividend stocks. i’m hoping to use the cash flow to help me buy more stocks. Over time, I’m hopeful both strategies will pay off and be successful.
Cheers!