Over the past few months, I have changed my investment strategy significantly. As I mentioned a couple weeks ago, I am now investing in several dividend-producing assets to see which investment produces the highest return. I call it a challenge, but it is ultimately a tool for analysis. Essentially, I will track my progress so that both you and I can be better informed investors going forward. Why invest more money in something just because it is the traditional way to do it when you can be getting a better return elsewhere? I plan to update everyone on the status of this challenge every month (mid-month), so be looking for that update soon.
As promised, I am providing my first update on my attempt to find the best source of passive income. It was a month ago (almost to the day) that I set out on a goal to develop multiples passive income streams. While a lot of things have been set in motion, I am still far away from having a great view on which stream is best.
One of the things that I like to do on this site is to provide creative ways to build passive income. Part of that is in part due to the fact that I think it helps others think outside the box. The point is simple. You can build up passive income if you dedicate enough focus to doing it. Focus and energy to stay committed toward a goal. This isn’t an easy achievement by any means. It takes dedication and hard work. I may make it sound easy with all of the different streams that I am investing in now, but it’s not. One of the biggest ways that it is hard to continue working towards these goals (short-term progress and long-term goal of financial independence) is to avoid spending more money.
When building up your passive income streams, it is important to know what you are doing with your money. If you are diversifying your income, it is likely that you have multiple ways of generating income. Whether it is originating from dividends, peer to peer lending, rental properties, or another source of passive income, you need to know what you are doing with it once you receive the cash.
About a year ago, I set a goal for myself to seek early retirement as aggressively as I could. Part of it is knowing that I had at least two years left at my current job and living at the same place while my wife finished her graduate school. It is now a year later and I have a little over a year left before we need to make the next big decision in our lives. Most likely, it will result in us moving, but that leaves me with an even bigger decision.
Earlier this week I published my goal to earn $8,000 in passive income. I have come to realize that my projections are overly ambitious and to make things worse, didn’t account for my hopeful home purchase in the next couple of years. Find out how buying a home will affect my ability to develop passive income streams.
Recently, I have been looking at new and used cars. Part of what got me interested was looking at some of the new hybrid cars that available. I was looking at all brands of cars, including some of the honda cars for sale. I know that buying a new car is a dangerous game of lifestyle inflation…but there is a lot of marketing aimed at consumers, trying to convince them to buy a new car for all the emotional reasons. It’s hard to ignore sometimes, if we are honest with ourselves. You know what I am talking about. That sleek, new design. The smell of a new car. These are all pleasant things. It’s hard not to buy into these subliminal messages.
Investing in real estate is an exciting step towards financial independence. It’s something that I am working on doing without having the hassle of day to day management. While some people go through the process of making it more passive through a real estate manager, I am going an even more passive route. I am investing in a limited partnership. For those of you who don’t have the same opportunity as I do, you may be thinking about buying your own property in order to diversify your investments. If you ask me, this is a great idea. Yet, just because I am a huge supporter of real estate investing, doesn’t mean that you can do it without considering every minor detail. In fact, there are many things that you need to consider before making the leap.