Do you ever check how much interest, dividends and passive income you earn on a daily basis?
Ever since I started on my Financial Enlightenment, I’ve been keeping track of my interest and dividends. I’ve been tracking a lot of things actually (gotta love spreadsheets). I figure the more I keep track of things, the more aware I’ll be of my financial situation at any given moment. This kind of awareness helps in little ways, like when my wife asks me questions about how much we have here and there.
Interestingly enough, I started out this year earning about $0.35/day passively (Hey, don’t judge me. We all have to start somewhere.). As of the end of this month, I’m earning about $2.60/day. There are still some numbers that need to come in, but here’s the chart that corresponds with the growth of that number:
And here’s the chart which corresponds with the annual projections based on those numbers as multiplied for the year:
You know, at this rate, it’s almost to the point where I’ll earn over $1,000/year without doing anything. That’s a pretty excellent achievement on the path to making about 60 – 100X that amount. It’s basically like step one has been completed, which leads me to my next interesting fact.
Today, I Invested More
My monthly paycheck finally cleared, so I decided to do two things before I send money elsewhere. One, I started the transfer that will effectively complete my Emergency Fund goal of $50,000, so look out for the post on that achievement. Second, I moved another $2,500 into VTSAX.
Coincidentally, the price dropped today — from $53.06 Friday to $51.93, so I’m not sure how much that will impact my total investment but if it works out, great. If not, I’m in it for the long haul so it doesn’t matter in the big scheme of things. What’s important is that I’m not trying to time the market. Also, I’m trying to maximize how much I put into my SEP IRA before I transition into a salaried position. Hopefully that just means more daily accrued interest and more in dividends. Oh, right, and I also just learned VTSAX pays dividends (thank you Dividend Life!).
Now that these milestones are being hit, I am starting to consider what to do next.
Admittedly, part of what I’ve been considering is reducing my six month E-fund down to three, and investing the rest. I won’t do anything drastic, of course, but that doesn’t mean I haven’t toyed with the idea of putting that $25k somewhere to generate higher returns overall. It won’t do much to my net worth, but it would, for example, certainly help the interest rate if I put that much in VTSAX. Right now, the E-fund is earning 1% sitting in Ally, when it could be earning much more in the long run. That would probably push me closer to $2,000/year!
But what if I invested it in something else?
A friend of mine is thinking about investing in a franchise, which would be built in a nearby location I think is perfect. The overall start-up cost? Around $250,000. It just so happens that I could put in for 10% of that. Another friend has become a decent property manager, having purchased his fifth duplex and successfully renting all but one of the units, which he lives in himself. I’m actually set to talk to him about this very thing this week, so I’m excited about that. In this area, I don’t think $25k will get me into a duplex, but it will at least give me a target number to shoot for.
I’m also keeping an eye on some Flippa web “properties” for potential investments. It seems like $25k could get me somewhere in the neighborhood of $1,000 – 1500/month in passive income. The trick is finding sites that aren’t in an irreversible (without a ton of work) decline. And let’s face it, in a lot of areas, I am green. I’m still watching though.
Lastly, I have started the gears turning on a side business that could turn out to be pretty big.
You never know.