This page represents a general look at my financial progress over the last 13 years divided into various categories. It details how I got started, what kind of companies I invest in, and the important financial lessons I’ve learned to make me a better investor. Hopefully my quirky strategies will inspire others to reach for their financial goals as well. 😀
Dividends are a great way to get started in the world of investing. It starts off slow at first, but over 10 or 20 years it’s possible to build quite a significant stream of income from it. I started in 2009. In 2019 I was making about $14,000/year. By 2029 I aim to make at least $40,000 annually from dividend income. Click here for more details about my dividend progress.
Incomes / Expenses Progress
It’s important to track our incomes and spending because in order to build our investments we need to be making more than we spend. I was able to double my income in the last 6 years through a combination of salary increases and finding new sources of income. But my expenses have also crept higher. The trick is to increase income while keeping a lid on spending. I track my income statement every year to make sure I’m living within my means. Click here for more details.
Net Worth Progress
Financial success is mostly about building up assets. 😀 Making the maximum usage of what we have is the ultimate reward. Net worth is the value of all net assets, a barometer for wealth…
My strategy has been to buy up appreciating assets that also generate income. But I don’t have to earn a lot of money to do this because when interest rates are low like they are now, I can leverage other people’s money. Since I started working I’ve managed to buy an apartment for $230,000, two separate farms for $150,000 and $172,000, a rental property for $450,000, and various stocks valued at more than $500,000. Over all this time most of those assets are worth more now than when I initially bought them. I update my net worth once a month.
Road to Financial Freedom
The whole point of this blog is to track my progress to have enough income generating assets to live a financially free life. I anticipate it will be a long and slow process just like it would be for anyone else. But so far I am having a lot of fun watching my financial security become more and more self sustaining every year. 😀 I will be financially free when my nominal passive income for the year reaches 100% or more of my expenses for that same year.
|Year’s End||Passive Income to Expenses|
Nominal – The passive income I make before factoring in inflation (CPI.)
Passive Income – After tax income that requires little or no work to maintain. The tax is calculated under the assumption that I do not have any supplementary active income, ie: a job. Examples of passive income include dividends, royalties, rent, pensions, child care benefits, etc.
Expenses – My total spending for that particular year. This will always be a moving target due to inflation and lifestyle changes.