Growing passive income
Thanks to some recent stock purchases I’m now making about $20K a year in total dividend income. 🙂 I also earn $9K a year from interest through my fixed income portfolio. And my rental property cash flows $700 a year after mortgage payments and other costs. So altogether my forward annual passive income is expected to be $29,700.
My current personal expenses adds up to roughly $30,000 a year. This means I am really close to being financially free. Hurray! 🤗 Investment income tends to be fairly stable despite volatility in the underlying assets. So unless there’s some kind of black swan event I will probably achieve financial independence within the next couple of months!
I didn’t expect to hit my goal this soon. My initial plan was to be FI in 2022 – when I turn 35 years old. But now it appears financial freedom could be just around the corner! 😀
This came as a surprise to me. I didn’t expect the stock market would go on sale earlier this year. But it did. 😁 As a result I was able to buy more shares than initially planned, leading to a higher yield on cost.
Since I’m further ahead on my financial journey than planned I have decided to reduce my financial efforts by quitting all freelance work. This means going forward I will be working only 45 hours a week instead of 50 hours a week. This will give me more free time on the weekends. But I will keep both my full-time and part-time jobs for now. 😬
Liquid’s Financial Update June 2020
*Side Incomes: = $4,600
- Part time job =$800
- Dividends =$1300
- Interest = $600
- Rent = $1,800
*Discretionary Spending: = $1,800
- Food = $400
- Miscellaneous = $500
- Interest expense = $900
*Net Worth: (ΔMoM)
- Total Assets: = $1,540,400 (+$10,200)
- Cash = $20,800 (-32,500)
- Canadian stocks = $336,900 (+35,700)
- U.S. stocks = $153,700 (+3800)
- U.K. stocks = $19,600 (+700)
- Retirement = $152,200 (-900)
- Mortgage Funds = $39,300 (+3100)
- P2P Lending = $36,900 (+300)
- Home = $331,000 (assessed land value)
- Rental Unit = $450,000 (2020 purchase price)
- Total Debts: = $518,500 (-3,300)
- Home Mortgage = $181,300 (-500)
- Rental Property Mortgage = $312,000 (-800)
- Margin Loans = $25,200 (-2,000)
*Total Net Worth = $1,021,900 (+$13,500 / +1.3%)
All numbers are in $CDN at 0.73/USD
It was another positive month for the financial markets as stocks continue to recover. I filed my income tax in June. I have to pay about $2.5K in tax adjustment to the Canada Revenue Agency (CRA) this year because I didn’t use all of my RRSP deduction room. The good news is I don’t have to pay this tax bill until September. 🙂
I’m planning to use all of my saved RRSP deduction for next year’s tax season when I have to offset the huge capital gain I triggered this year from selling the farmland – which unlocked about $250,000 of equity that was just sitting there doing nothing.
2020 has been a wild ride so far. But we are officially half way through. How are your finances doing so far this year?
Random Useless Fact: