Wednesday, November 15, 2017

Goals for 2018: Big Things Ahead!

In this post, I'd like to share a draft  plan of what I think my 2018 Financial Goals will be.  It's only November of 2017 still, so I've got a few weeks left to adjust any of these goals if necessary, but as it stands right now I think these will be what I strive for in 2018, from a financial perspective.

My primary purpose with these goals is simple: to give me a benchmark of success, to know where I should be heading when things are unclear, and to evaluate how well I am doing over the long 365 days we have in 2018.

For this year I decided on 10 financial goals (in 2017 I had 10 as well), but this year I am adding what I will call a "stretch goal" as well - a goal that is far out of reach, one that I may strive for (or may not), so if it does end up actually happening, awesome. But if it does not, no big deal. Spoiler - this year's stretch goal is real estate related.

I tend to put a lot of thought into picking these goals and narrowing them down to only my top 10. But on the other hand, I also tend to think that one's financial success is more about the discipline of sticking to a plan over time than it is about coming up with the right, very complicated, or detailed, plan.  In my opinion, financial success is rather straightforward: save more than you earn, diversify, and invest wisely over many, many years. That is pretty simple. But it is definitely not easy. It is actually very hard sticking to your plan, day in and day out, when others are doing many other more exciting things, or taking exciting vacations, while you are diligently sacrificing and not derailing your plan with poor investment choices or reckless spending.

Let's take a look now at my goals for 2018. I'll be turning 32 years old this year, and will be entering the 3rd year of Passive Income Dude. With all of that said as an introduction, I'm anticipating BIG THINGS AHEAD!  Here we go:

Saturday, November 11, 2017

Passive Income Report: October 2017

Sorry for the delay! - It is time again for my Monthly Progress Review, and again I am happy to report a very large YoY growth of 108% from last October. Despite the large number, it was a rather boring month, of zero action or excitement or purchases or anything new...just letting the system work. Still, I'm happy to receive the amount my portfolio generated!

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers October 2017.  I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together!

General Thoughts on This Month: A rather boring month as I said of simply letting the system execute what it's been set up to do.  This month was carried almost exclusively by the real estate portion of my portfolio, which I am fine with because that is where my focus has been the last few years. It may be time to start focusing back on the equities side soon.  The market just seems pricey and the bull-market is now the second oldest in history.  When will we see a 20% drop?

All of that said, Read More to see how I earned $980.25 this month in passive income,

Wednesday, October 11, 2017

Income/Expenses: September 2017

Another month has passed and it is time again for my monthly Income/Expenses report. 

In these reports I highlight what income I made during the month, what sources all of the income came from, and where it all went on the 'expenses'-side; showing all purchases by category...every dollar! Ideally, when it all is calculated I achieve a high savings rate, and then I post that to my Savings Rate tab for month-by-month tracking of progress.

General thoughts on this month: This was another 'standard' month for us. Nothing exciting, nothing extraordinary, but simply discipline and sticking to the budget we've created. Unfortunately we are MASSIVELY in debt at the moment thanks to the purchase of our 4th rental property, so I CANNOT WAIT to have all of that paid off.  Here are the numbers:

Saturday, September 30, 2017

Passive Income Report: September 2017 (348% YoY Growth!)

It is time again for my Monthly Progress Review, and I'm excited because this is my FOURTH record month in a row...and one where I achieved a 348.6% Year-over-year growth rate from last September 2016. Things are really clicking into place for my portfolio - praise God!

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers September 2017.  
I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together! 


General Thoughts on This Month: In September 2016 I received $369.  WHAT A BLOWOUT this year's September was, comparatively. This was my 4th record month in row, and it was also the first month where all 4 of my rental properties paid out with no expenses or issues.  Completely, 100%, passive income.  This was also only the second month ever where I have achieved 4 digits of passive income in a month that isn't December (my big paying month, due to mutual funds.)

Read More to see how I earned $1,655.24 this month in passive income,

Saturday, September 16, 2017

Income/Expenses: August 2017

Another month has passed and it is time again for my monthly Income/Expenses report. 

In these reports I highlight what income I made during the month, what sources all of the income came from, and where it all went, on the 'expenses'-side; showing all purchases by category...every dollar! Ideally, when it all is calculated I achieve a high savings rate, and then I post that to my Savings Rate tab for month-by-month tracking of progress.

General thoughts on this month: This was another very good month for us, and I think we are now in a good routine after our move up to NY.  We're making quality spending decisions (for the most part!), trying to maintain a high level of frugality, while still providing for our two kids and our hobbies, etc.  Unfortunately, we're still in debt by over $15,000 thanks to our last real estate purchase, so unfortunately all surplus is not "felt" yet and actually goes towards paying down debt.  Soon though!  Without further adieu, here is what happened this month:

Friday, September 8, 2017

My Year-over-Year (YoY) Growth in 2017

I thought I would do a quick post about my favorite metric (or at least what I consider to be the most important one), and that is Year-Over-Year growth, or oftentimes shortened to YoY.

I believe YoY growth is extremely critical in measuring one's progress and in making real strides towards financial independence for a few reasons. First, it helps you clearly see the direction you are moving, which is always nice and good to know (which may be obvious to us bloggers, but MANY people do not have a clear understanding of which way they are moving). But more importantly: it helps you clearly see the pace at which you are moving! 

Knowing your "pace" is extremely important in your journey toward FI, and oftentimes we overlook measuring our pace for more exciting metrics like "total dividends earned" or "number of companies that payed out" or "total passive income."  But consider the following example: if your YoY growth turns out to be only 3%, then in reality your "growth" is probably nothing more than inflation!  Who cares about the dividends or number of payers or income! In 'real' dollars, your growth is actually probably zero! Or consider a growth of 5% with all equities (or all dividend paying stocks).  Is that good?? Well, I would say no - you're taking on significantly too much risk to only achieve the 5% growth that you did.  You should be getting much more than that!

With all of that said as an introduction, I have been very thankful and excited for the growth that we've achieved this year.  In September, I anticipate we may have YoY growth for the month at approximately ~275% from last year!  We will see, but I'm excited for the final numbers to come in over the next few weeks, as I'm hoping for monstrous growth. If it is close to my estimate, we'll just assume a conservative 225% here, below is what my YoY growth for 2017 would be:   



Overall, I'm very excited to achieve that level of growth.  A little too sporadic for my particular tastes (but real estate will do that sometimes!), and February and May were clearly disappointing - thanks to some larger real estate expenses and a few portfolio moves, but this year I've written a lot about how it would be the second half of the year where things really kicked in to the next gear for my plan. And that is actually what we're seeing in the above chart.  Take a look again: from June onwards my growth has been a monstrous 113% average per month!  

With 9 months of the year completed, seeing a 41.6% per month average growth is great!  We will see how the rest of the year actually turns out - it only takes one tenant to move out to COMPLETELY reverse these numbers :), but I'm hopeful I can finish the year strong with very good numbers.

What do you think? How has your growth been? Do you calculate YoY growth as an important metric of your progress?  What level of growth do you consider acceptable?

Thanks for reading!

Passive Income Dude

Friday, September 1, 2017

Passive Income Report: August 2017 (Record x3!)

It is time again for my Monthly Progress Review, and I'm excited because this is my third record month in a row..thanks mostly to rental properties.

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers August 2017.  
I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together! 




General Thoughts on This Month: August was another record month for me, and the snowball is finally rolling, albeit still not fast enough yet (unfortunately) to reach my passive income goal for the year (agh!). But hey, that is ok. I had real estate expenses of over $230, but I still was able to increase my YoY growth for this month by 28.2%. That is very encouraging!

Read More to see how I earned $843.45 this month in passive income,

Wednesday, August 23, 2017

Rental Property (North Carolina #2): All details!


Home purchase #4

This is another property that I believe has great long-term potential.  This deal closed mid-year in 2017, and so it is clearly my latest real estate purchase, with only a few recent months under ownership. As a result, I don't have a ton of data at this point, but what I do have is very encouraging.  

That said, another interesting thing about this property is that this is my first real "real estate investment" as a rental property from day 1; the purchase.  You'll notice with my three other properties that those were homes that my family and I lived in first, for up to at least several years most times, in which we then decided to rent each of them out once the Army moved us to a new location.  With this particular home, however, I took a much different perspective knowing that I would never live in it personally.  Critical change in perspective.

In addition to that, my financing on this property was absolutely INCREDIBLE. What a blessing it was, and I will share more about that below.  The financing alone should make my total returns north of 20% per year.  20% per year! 

And like my other properties, in this page of PassiveIncomeDude, I would like to share as many details as possible of this investment. My goal is to be as transparent as possible and I hope it helps you on your real estate journey as well!  Here we go:

Saturday, August 19, 2017

Income/Expenses: July 2017

I'm getting rather sloppy with my income/expenses reports, but hey, that's life sometimes and I want to ensure the data is at least "logged" so I can reflect back on it and keep a record of what's been occurring throughout the year.  Again, I'll cut right to the chase:

Thursday, August 10, 2017

Mid-Year Financial Goals Update!

Hello all! I wanted to take a few minutes to review my 2017 Passive Income Goals, since we are now just over half-way complete with the year. 

And what a year it has been thus far! It looks like I have completed 5 of my 10 goals, which I’m thrilled about, and will detail each one below: