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 steps. The first step 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.
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. Smaller chunks are always easier to swallow! So to start of 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
Current Goal: $25 per week of passive income
So how does it all stack up? and have I achieved Goal 1?
Harmony
11.41%
Total Invested $16021.67
Weekly Passive Income: $35.15
Lending Crown
11.38%
Total Invested $3998.56
Weekly Passive Income: $8.75
KiwiSaver
5.10% last 3 months
Total Invested: $314
Weekly Passive Income: $0.31
Now I have a few other investments
Genesis Power
8.3% Interim Dividend
Total Invested: $4024
Passive Income: $6.42
Nikko Core Fund
29.19% Last year
Total Invested: $1492
Weekly Passive Income: $8.39
OneAnswer Fund
19.52% Last year
Total Invested: $1372
Weekly Passive Income: $5.15
Nikko Concentrated Fund
31.73% Last year
Total Invested: $1554
Weekly Passive Income: $9.48
Fisher Fund
21.38% Last year
Total Invested: $1428
Weekly Passive Income: $5.87
Savings
0.1% per annum
Total Invested: $16,000
Weekly Passive Income: >$1.00
Total Weekly Passive Income: $80.53 pw
Wow! I have never calculated my passive income in terms of weekly return. There is no way I thought I was making $25 per week, let alone $80pw.
Goal 1: $25 per week Probably achieved 2016
Goal 2: $50 per week – Probably achieved 2016
Goal 3: $70 per week – Probably achieved 2017
Goal 4: $80 per week – Probably achieved 2017
Goal 5: $100 per week
This is the first time that I have checked the interest rate on my savings account. I really need to get on to investing this money into something that is actually earning decent interest. Currently, I think I need to diversify away from peer-to-peer lending. However, they are returning a good investment at this stage.
The main thing I have learned from this exercise is that I need to be far more active in my investing! I hope that you will take this away as well and have a closer look at your passive income, and where you stand. Breaking it all down to weekly income really gives it some meaning!
*Note: I write these reports to keep myself focused and honest on my goals.
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