There is no point in having a goal if you don’t measure whether or not you have achieved it. My current goal is to replace my income with passive income. I have decided to split my goal into smaller more manageable goals. The first small goal is to achieve a passive income of $25 per week. Once I have achieved this I will push for $50 per week, $75 per week after that.
Update: Last month I thought I had calculated that my weekly passive income was $110 per week. I have reviewed my investments, and sadly, I have done the calculations wrong. I was astonished that I had reached $110 per week, even more so that up until last month passive income was always in the back of my mind. I haven’t until now actively tacked it.
Here are the reviewed numbers
Goal 1: Earn a passive income of $25 per week
Splitting my goal up into smaller pieces will make it easier to achieve my overall goal of replacing my salary with passive income. Smaller chunks are always easier to swallow! So to start off with I need to know what my passive income is currently. I have always tracked my spending, and I know my income. But I have never really calculated my passive income. So here goes
Peer to Peer Lending
The returns from peer-to-peer lending have been great for me so far. There is a lot of stigma that it is risky. But from all my investing, I haven’t had too many defaults. Let’s hope this keeps happening.
Harmony
Value: $17,265
Weekly Passive Income: $28
Lending Crowd
Value: $4989
Weekly Passive Income: $10
Retirement Fund
I have only recently opted into the kiwisaver, after thinking that not getting the 3% from my employer, and the government tax credit, I was just leaving money on the table. Obviously, any gains I make in my kiwisaver fund cannot be accessed until the actual retirement age of 64, which I am not overly happy with. But the benefits outweigh not having access to this money.
KiwiSaver
Value: $722
Weekly Passive Income: $0
Company Shares
I have shares in one listed company and several start-ups. I just received dividends from Genesis, which are six monthly payments. So my per week income is calculated from the dividend payment divided by 26. The actual value of my shares have gone, but that doesn’t bother me, they will probably go up next month.
Genesis Energy Limited
Value: $3776
Passive Income: $5.00
Managed Funds
Value: $1524
Weekly Passive Income: $8
OneAnswer Fund
Value: $1384
Weekly Passive Income: $3
Nikko Concentrated Fund
Value:$1584
Weekly Passive Income: $7
Fisher Fund
Value: $1428
Weekly Passive Income: -$36
AMP Capital
Value: $361
Weekly Passive Income: $0
VanGaurd
Value: $58
Weekly Passive Income: -$1
Index Funds
This month I opened a number of Index funds. Index funds are an essential tool to achieve FIRE. They provide good returns and have low fees. I’ve only just started these funds, but I have committed to invest 400 per month shared amongst them evenly. I may have gone overboard on the diversification, but I am comfortable with it.
NZ top 50
Value: $363
Weekly Passive Income: $2
US 500
Value: $360
Weekly Passive Income: $3
NZ Mid Cap
Value: $339
Weekly Passive Income: $1
Total World Fund
Value: $112
Weekly Passive Income: $0
Europe Fund
Value: $107
Weekly Passive Income: $0
Savings
Finally, I have my savings account. This cash account is basically what I use as an emergency fund/money I have not decided to invest yet. With the interest on savings accounts in this current market being so low, the money doesn’t earn any passive income
Cash
Value: $14,500
Weekly Passive Income: >$1.00
Totals
Total Value: $34,355
Total Weekly Passive Income: $30 pw
Thoughts
$30 per week passive income is a great achievement at this stage. It is a little disappointing after checking my numbers that it has dropped from my previous calculations. I had quite a buzzy month because of that! Although, hopefully, my passive income will reach that level as I calculate it using the annual per cent increase on all my investments. This time I actually used the actual difference between this month and last month.
Goal for May
I need to invest some more of my cash as it currently isn’t earning anything sitting in my bank’s savings account. I will probably buy some more shares in the index funds I currently have.
*Note: I write these reports to keep myself focused and honest on my goals. Hopefully, along the way I keep you motivated to actively track your finances and investments to help you achieve your Passive Income Goals.
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this is awesome, you know you can use your Kiwisaver for your first home? Is your index funds through sharesies?
Hey there, yes I know that you can buy your first home through kiwisaver. This is a great option to get on the property ladder. Unfortunately, when I purchased my first home I didn’t have kiwisaver, and the banks were more ready to lend a higher proportion. I saved throughout university and had a small deposit and borrowed 95% for a house in a cheap city. I use investnow for my index funds. I hear good things about sharesies thought. I just find that there are more funds available through investnow.
Hi Rohan
Nice to meet a fellow Fire NZer. I am probably only a year into it and my return over the last 6 months has been 3% for my small portfolio mostly because I had been drip feeding small amounts monthly from cash accounts into stocks with a portion in dividend funds where returns of 4% seem to keep my averages steady. Drip feeding also means I avoided the volatility in stocks we have been experiencing lately. I also bought my first house before I had Kiwisaver but I signed up right after in 2009 and have enjoyed almost a 50% return on it before I switched to index funds. I sold my home last year and looking for a new house at present that I can withdraw Kiwisaver under the second chance home withdrawal scheme.
Sharil
Hey there, nice to meet you. There are definitely not many kiwi bloggers out there. Hopefully I can bring some good kiwi content. Drip feeding, or dollar cost averaging is a good way to go- that is exactly what I am doing. Joining kiwisaver late is probably one of my biggest regrets due to missing out on the government “tax credit” and 3% employer match. But hey, you can never start too late. I don’t know much about the second chance scheme.
https://www.hnzc.co.nz/ways-we-can-help-you-to-own-a-home/kiwisaver-features-for-previous-home-owners/