What I did to grow my passive income
Here are the 3 secrets I use to earn 20% return on investment.
- Look for relatively undervalued dividend growth stocks. I use the stock screener at Yahoo Finance to help me find the best stocks.
- Do not sell too early. The only time you should consider selling a stock is if you need the money for something else better. People often lose more money by getting out of a stock too early than by choosing a bad stock to buy in the first place.
- Use other people’s money to make money. If you buy a house with a 50% down payment, and borrow the rest, your returns will be 2x. The same goes for any type of investment, not only real estate. As long as you choose quality stocks to buy, you will not lose money borrowing to invest.
Despite making only $60,000 a year from my job, my investment portfolio has grown to over $1,000,000 over the last 10 years of investing. The money I earn from my financial assets is called passive income. 😉 I write about how to improve my passive income on this blog all the time.
I’ve written about buying Apple stocks, high yield bonds, real estate trusts, and other investments that have mostly performed exceptionally well over the years. I like sharing my financial stories so that others can learn from them. 🙂
My screening process only looks for the best dividend and growth stocks that tend to outperform the market over time. Using leverage also helped a lot by multiplying my returns.
Thanks to some recent stock purchases I’m now making about $29,000 a year in dividend and interest income. This was done by analyzing stocks, and picking the winners. 🙂
Planning to retire in my thirties
My living expenses is about $30,000 a year. This means I am very close to being financially free. Hurray! 🤗 Investment income tends to be fairly stable despite volatility in the underlying assets. So I will probably achieve financial independence within the next couple of months!
Financial independence means I will earn enough income from my investments to not ever have to work for money again. There are different types of FI you can choose.
I didn’t expect to hit my goal this soon. My initial plan was to be financially free in 2022 – when I turn 35 years old. But now it appears financial freedom could be just around the corner! 😀
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 $2,500 in tax adjustment to the government this year because I didn’t use all of my deduction room.
I’m planning to use all of my saved retirement account 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. I’m so happy I made a triple digit return with my farmland investment.
I plan to deploy more capital soon into dividend growth stocks to continue growing my passive income. And as usual I will be posting what I buy on this blog.
Random Useless Fact: