This one’s for the money nerds….
I’ve started to track our passive income versus our expenses, just to see how we’re doing on our way to Financial Freedom/ Independence. (I’ve tracked it before but never with any consistency as it seemed so far away!) Time seems to move very quickly though and in 35 months time we’ll hopefully be mortgage free, so tracking* it [passive income] can’t be a bad thing.
Our Financial Freedom goal is to have enough passive income from our investments/savings to cover our basic living costs by December 2020. This doesn’t include any pension payments – it’s purely cash an/or investments.
*BASIC EXPENSES
- Column 3 assumes no mortgage payment and our expenses being pretty similar to today.
*CURRENT PASSIVE INCOME
- Figure in box is current passive income – minus mortgage free expenses (£9,326.76 – £760.30) = £8,566.46
The good news is that we’re already earning nearly a months worth of expenses in passive income, but we still have a very long way to go!
Here’s a little chart I made to show potential passive income from investments
Right now we also get passive income via cash back (credit card and buying sites). but I’m assuming this will reduce over time as our spending/buying does.
*Our savings are not increasing dramatically while we payoff our mortgage and so I’ll only be tracking this annually I think.
Do you track your passive income?
