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Online Earnings for March 2017

Many, if not most, Americans live on a paycheck-to-paycheck basis. This makes it hard for most people to build up wealth. When you spend pretty much every penny that you make, it’s hard to build up a nest egg. This is where online earnings that can supplement the money you get from your regular job.

Prioritize Your Finances to wind up with a suitcase of money
Online earnings can build up a nice nest egg over time.

While many people do quite well financially, there are more that have a job that pays little. These people frequently look to the side hustle. This is the reason I started to look for ways to make money online about a decade ago.

It’s definitely helped improve my financial position over what it would have been had I not started. My online earnings have increased over time. Some months’ I’ll do pretty well; others, I’ll make less. The way I look at it, though, any extra money that I can bring in will help me build wealth over time.

Back in February, I made just above $200, which was less than the $334 that I made in January. Now it’s time to check my online earnings for March.

Online Earnings for March 2017

Freelance Writing:                   $241.55
Swagbucks:                                  $75.00

TOTAL for March 2017:       $316.55

While this amount of online earnings was less than it was in January, it was more than I earned in February. I earned from two freelance sites. I usually write about finance, but will occasionally take a job for a different topic like travel.

I’ve also gone over $1,500 lifetime earnings on Swagbucks. If you’ve not yet signed up for Swagbucks, you can do so by clicking on the previous link. You can also learn about some of the methods that I use to earn money on Swagbucks and how this could build up to a nice chunck of change over time from this short and relatively inexpensive book on building wealth with Swagbucks:

How To Earn Money With Swagbucks In Your Spare Time To Build Wealth

I’m keeping up with my online earnings to show you, my readers, how it can be done. I started making money on the Internet nearly 10 years ago, and I’ve increased this over time. You’ll probably not get rich over time, but you can earn money and supplement your income. You can make this money in your pajamas without leaving home, and it can really go a long way to helping you improve your personal finances.

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March 2017 Passive Dividend Income

Passive Dividend Income Builds Up Slowly But Surely

Yet another month has come and gone. I don’t like new months for one reason, as they seem to be coming more quickly as I get older. I do, however, enjoy them for another reason, because they give a great chance to look back. One of the best things to look back over is passive dividend income.

As you might already know, I’ve decided to embark upon a path of building a growing stream of passive dividend income. The strategy involves buying stock in a few high-quality companies. These companies have many employees who work hard every day.

They also tend to make lots of money, and part of the money that they make comes back to me in the form of dividends. These are cash payments that I can use for pretty much whatever I want. At this point in life, I’m using them to buy more stock. Which leads to more dividends. Which leads to more stock. And on and on this virtuous cycle should go.

Passive Dividend Income for March 2017

March was a great month for earning dividends. I had several companies and funds that paid out in the month. One was even unexpected. Kraft-Heinz switched up from paying out in the first month of the quarter to the third month. It’s no big deal, but it does make my first month income look smaller. Oh well, first world problem, for sure. Here are the great companies that paid me passive dividend income during the month of March:

Taxable Account

Unilever (UL)                                                                           $0.33
McDonald’s (MCD)                                                             $2.79
Kraft-Heinz (KHC)                                                               $1.72

Traditional IRA

Southern Co. (SO)                                                             $16.80
Johnson & Johnson (JNJ)                                               $8.00
Realty Income Corp (O)                                                   $2.11

401k

JP Morgan Equity Income R5 (OIERX)                  $2.23
Cohen and Steers Realty Shares (CSRSX)            $8.18

TOTAL FOR MARCH 2017:   $42.16

Year-to-Year Comparison

When adding up all of these dividend payments, they come up to $42.16 for the month of March. This is an increase of nearly 210 percent over the $13.62 of passive dividend income that I received in the same month last year.

My dividend income  for 2017 is now up to $90.35 for the year. I was at a little less than $25 at this point last year. My $42.16 in dividend income would have bought me just north of 2 hours of freedom in March, based upon my estimate of needing $20/hour of passive income to keep up my standard of living without full-time work. My monthly passive dividend income page that tracks my progress over time has an update with this information.

How was your dividend income for March? Let us know in the comments.

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information.

Image credit: Wikimedia Commons

 

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How To Prioritize Your Finances

The following contribution comes to us from Dave Chen.

How to Prioritize Your Finances

Your finances are a crucial part of your life. Without them, you would not have a place to live, you would not be able to afford to drive your vehicle, and so on. Your finances need to be properly managed to ensure that you do not wind up in a huge debt hole without a way to climb out. Below, we will provide you with some tips and steps to prioritize your finances.

Of course, you want to make sure that you ALWAYS pay your obligations first because you need a place to live, and sacrificing this to put money into your savings account does not make much sense. Okay, let’s take a look at the tips now.

Prioritize Your Finances to wind up with a suitcase of money
Prioritize your finances, and you could wind up with a suitcase of money. Image via Pixabay.

1. Pay Off High-interest Debt

The first priority is for you to pay down your highest interest debt and also any dangerous debt that you may have. You need to tackle these first  because they will hurt you and stick with you if you do not. Many people do not know what debts to consider as dangerous debt. These debts include those with high interest rates, tax liens, debts in collection, and so on.

Pay-day loans, credit cards, high-interest car loans, and high-interest personal loans need to be paid off immediately. The longer you wait to pay them off, the worse off you will be. You will accumulate interest on this debt at a rapid rate, and the sooner you pay it off, the better – you will save thousands.

Pay off credit card debt to get finances in order
Pay off high-interest debt to get your finances in order. Image via Pixabay.

2. Save For Retirement

You want to retire at some point, right? If so, you need to think about your future and start to save for retirement. The longer you wait, the more money you will need to put away. For example, if you do not start saving for retirement until you are 40, you may have to put away half of your salary to be able to have a nice nest egg when you retire.

Your retirement account will ultimately determine whether or not you will live in poverty when you retire. The less you save, the more government help you will need, and the longer you will have to work.

To help you determine how much money you should save, if you were to save $500 per month for a period of 20 years and earn 10 percent on the money, you would save about $380,000 for retirement.

3. Create an Emergency Fund

What would you do right now if the roof on your home caved in? What about if your vehicle’s engine blew? These are things that you need to think about and consider. Many people do not have any type of emergency fund set up, and this means that they have to forgo some of the things they need because of it.

An emergency fund will cover three to six months of all of your living expenses in case the worst situation ever happens. For many people, this means more than $10,000. You should start putting extra money into this account and leave it there. Even if you save one or two percent of your income yearly, you could easily reach a target of $500 per year or so.

4. Go Over Your Expenses

If you already live paycheck to paycheck, the only way that you will be able to have room to save would be to sit down and think about your expenses and then look at them from an unbiased view. If you have a cable bill at $200 and your car insurance is another $200, you may want to cut back on the cable and talk to your agent about a better rate.

You need to explore areas where you may be paying too much and then try to lower the cost. In addition, you should eliminate any expenses that you do not need. On top of this, there are ways to make extra money that can help handle these extra expenses.

Start to Prioritize Your Finances Today

If you are ready to get your financial future into focus, now is the time to do it. We have helped you above by letting you know what we think you need to prioritize first when it comes to your finances. You should focus on the highest interest loans you have because these loans can throw you into a crazy whirlwind of debt, especially if you only make the minimum monthly payments each month. Quite often, this may be private student loans taken out to pay for college. Even more often, these rates can be much higher than federal options.

From there, you should then focus on your retirement, your savings account, and setting goals for yourself. Now is the time for you get a head start and get on the right financial track by starting to prioritize your finances.

— Dave Chen is young professional working in the engineering field. On the side, he skiing, hiking, and writing about all things personal finance at MillenialPersonalFinance.com.

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Free Honeymoon With Two Credit Card Bonuses

Weddings can be a pretty expensive proposition. The average cost of a wedding in the US is more than $26,000, although most people spend less than $10,000. I guess the multiple Kardashian weddings skew the number up. After spending all of that money on a wedding, who wants to spend lots on a honeymoon? Yet many Americans do. They don’t have to, as there are ways to get a free honeymoon.

I Did Not Get A Free Honeymoon

I recently wrote a post related to how I got involved in travel hacking.  It was quite eyeopening to learn that I could travel for pennies on the dollar. However, this knowledge came a bit late for my own honeymoon. My honeymoon was probably the last major trip I took at full price. Had I known about the ease of scoring frequent flyer miles, my trip to Cancun would have been quite a bit cheaper.

A free honeymoon to Puerto Vallarta is possible.
A view of the pool and ocean and the Puerto Vallarta Marriott, photo by author

You Can Get A Free Honeymoon

Through the use of travel hacking, you can get a free honeymoon. All that it takes is a couple of strategic credit card signup bonuses. I do want to note that by free, I’m referring to highly discounted flights and hotel rooms. Food, ground transportation, and attractions would require more than the two signups that the title suggests. There are taxes on any flights that you can’t get around easily without certain credit cards that give credits for purchases. Additionally, there is the possibility that the hotel will charge a resort fee.

Get The Starwood Preferred Guest Card

Until April 5, 2017, the Starwood Preferred Guest credit card (link with higher signup bonus good until April 5, 2017) is offering a 35,000 point signup bonus with 25,000 paid out after spending $3,000 within three months and another 10,000 paid out after spending an additional $2,000 in the first six months on the personal version. You’d need to spend $5,000 and $3,000  over the same time frames to get the same bonus on the business version. **Please note that you cannot get this bonus if you’ve ever earned it before.

This 35,000 bonus is the highest that anyone has ever seen for the great card. With the recent merger between Marriott and Starwood, it may disappear in short order, so the time to apply is now.

While this number of points might not sound as impressive as some other cards that might be offering 50,000 or even 100,000, it can actually provide even more value.

When I first started reading travel hacking websites a few years ago, this card was the number one recommendation for everyday spending. Users of the Starwood Preferred Guest (personal and business versions) can transfer to just about any airline that has a frequent flyer program. These points transfer at a 1:1 ratio in most, but not all, instances.

A Room at the Renaissance Aruba Resort and Casino in Oranjestat
You could use your points for a room like this one that I enjoyed at the Renaissance Aruba Resort and Casino.

Transfer Starwood Points To Marriott

Those who transfer in 20,000 point batches get a 5,000 mile bonus. This results in what is effectively 1.25 miles per dollar spent, which is a pretty good deal.

However, for the strategy that I’m recommending, you’d want to transfer these points to Marriott Rewards. Marriott recently bought out Starwood, and those who have an account with both programs can link and transfer back and forth between them. Starwood points are worth 3 Marriott Rewards points each.

If you spend the required $5,000 to get the 35,000 bonus points, you’d also earn at least 5,000 additional points at one point per dollar of spending. These 40,000 would then equal 120,000 Marriott Rewards points.

If your spouse-to-be has not earned the bonus before and you still have some wedding expenses coming up, you both could possibly get the bonus by applying before April 5. These two bonuses would equal 240,000 Marriott Rewards points, and you’d be set. I’ll show you how below.

Sign Up For the Marriott Rewards Card

If you’ve only signed up for one of the Starwood cards, your second application should be the Marriott Rewards Premier card (sign up the the highlighted link–I may receive bonus points if you do, and I’d definitely appreciate your support–this is the highest offer currently available so you lose nothing by using my link).

This card offers an 80,000 point bonus after spending at least $3,000 in the first 90 days after your application. This will result in at least 83,000 points. 80,000 of these points will come from the bonus, and the additional 3,000 Marriott Rewards points will come from meeting the minimum spend.

You’ll earn one point per dollar spent on everything outside of restaurants and travel. These purchases earn two points per dollar.  Additionally, purchases at Marriott properties earn five points per dollar.

If the Marriott Rewards Premier Card is your second card, you’d now have at least 203,000 points after transferring the points from the Starwood card. If you both decide to get a Starwood card and then get the Marriott card, you’d then have more than 320,000 points should you be able to meet the required spend.

This is where it gets really, really interesting and where the free honeymoon comes into play.

Get A Marriott Vacation Package

Marriott is pretty unique among loyalty programs, because it provides the option of getting a week at a hotel AND frequent flyer miles. For 200,000 Marriott Rewards points, you could stay a week at any of their category 1-5 hotels and get 50,000 miles in most domestic airline programs (as well as a few international ones).  These miles could get you to many places throughout the continental United States, including California and Florida.

The 320,000 points that you could get should you choose to get two Starwood cards (one for you and your significant other) and a Marriott card would get you 7 nights in a category 6 hotel and 120,000 miles. This would be enough miles for a trip to Europe for both of you in economy class. You could also get 7 nights in a category 7 hotel and 100,000 miles, which would be enough for a trip to Hawaii if you can find availability.

If you both got a Starwood card and a Marriott card, you’d have more than 400,000 Marriott Rewards points available, and that would score you a week at just about any Marriott property in the world and some lower level Ritz Carlton properties.  You can search the various Marriott vacation package options at the Marriott site.  These options open the possibility of a free honeymoon to just about anyone who has solid credit.

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Online Earnings For February 2017

Some of my online earnings came from Swagbucks
I earned some of my online earnings from Swagbucks.

I’ve decided that it would be a good idea to track my online earnings this year. I used to do this when I started my site a little more than four years ago, but dropped out of the habit. I’ve since started tracking passive income from dividends. I believe that passive income is the best income, and that dividends are the best form of passive income.

Passive Income Does Not Build Itself

However, to build up passive income, I need to earn income from active work. This is necessary because passive income does not create itself. It’s a function of earning money off of capital invested in anything from pork bellies to gold to stock in great companies.

Starting around 2008, I began earning a bit of extra money online. I took a big pay cut to start a job that I really wanted. There was the possibility of this job becoming a great career, and it did. However, the financial remuneration at the time was not the best. I had a new and growing family, and I had no desire to work retail if I could avoid it I therefore started to focus on online earnings so that I could make money without leaving the house outside of my day job.

This effort started to pay off nearly immediately, and I’ve not had to go back to working in retail or fast food to make ends meet since. Some months I make more; some months I make less. Regardless, the additionally money outside of my day job has really helped my standard of living. I made money online via two different avenues during the month of February 2017.

Online Earnings For February 2017

Swagbucks:                                                               $25.00
Freelance Writing:                                               $176.87

Total Online Earnings, 2/17:                          $201.87

This was less than the $334.60 that I earned online in January, but it was still a nice little bit of income that helped me toward my overall financial goals of building up passive income. Part of the money that I made in February went toward buying quality dividend stocks that should pay me passive income for years into the future. Hopefully, I’ll make more in March that can help propel me further. I’m hoping that both my online earnings and my passive income will snowball in the future.

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Passive Dividend Income for February 2017

Passive Dividend Income Builds Up Slowly But Surely
The month of February is not quite up, but I’ve already gotten all of my passive dividend income payments for the month.  I always enjoy looking back over the month that was and add up my dividend earnings. Dividends are my favorite form of passive income because they come in whether I have work or not.  As I’ve said many times before, passive income is the best income.

I own some great companies that pay me on a regular basis. These companies sell their wares around the world every day. They have workers who are dedicated to serving their clients, and I’m not one of them.  These workers show up to do their jobs when I don’t have to. I have weekends off, but companies like Starbucks (SBUX) sell coffee each and every day in just about every time zone known to man. This is a really cool concept that allows me to build wealth.

Passive Dividend Income For February 2017

I earned multiple payments in February 2017. Three companies and one fund paid me basically for existing. Without holding you in suspense any longer, here is my passive dividend income for the month that was:

Taxable Account:

Starbucks (SBUX)                                                   $1.12

IRA

Realty Income Corp (O)                                      $2.11
Omega Healthcare Investors (OHI)         $31.00

401K

JP Morgan Equity Income RF (OIERX)     $2.33

TOTAL dividends, 2/17                                   $36.56

By looking at my passive dividend income for February, I was able to earn $36.56. I like to compare my income on a year-over-year basis, and in February 2016, I earned $6.27. This was more than $30 less than my earnings just one year later, which means my passive dividend income grew by more than 500 percent in just one year. I have to say I’m happy with this result. However, I don’t assume that this will continue indefinitely.

It’s evident that OHI was my biggest payer for the month. I don’t really like the outsized income that I get from one company, so I’m hoping that I can diversify more so that my income is not so dependent upon one company.

When I add my January income to my income from February, I’m now up to $48.19 in passive dividend income for 2017. It was June before I passed this amount of income in 2016, so I’m definitely thrilled with this progress

Hours of Freedom Earned

I like to track how much freedom my dividend income provides me each month. I have a forward estimated dividend income of $322.95 for the next 12 months. This means that I now have about 16 hours of freedom built up for the next 12 months.

I argue that I would need to earn $20 an hour to maintain a similar standard of living to what I currently have. This figure is arrived at with the assumption that I would not be paying toward retirement or Social Security. Additionally, I would have fewer expenses associated with work like an occasional meal out and commuting.

16 hours of freedom is the equivalent of 1 hour, 20 minutes a month. If I look at my income from February only, it would have nearly bought me 2 hours of freedom. It’s not quite the 170 hours that I’d normally work for a month, but it’s a start.  I enjoy looking at the upward trend, however.

How was your passive dividend income for February? Let us know in the comments.

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information.

Image credit: Wikimedia Commons

 

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Online Earnings For January 2017

The title of this site is Earn Money In Pajamas. I like earning money while sitting at home and watching TV or hanging out  with the family. I can earn money at home at just about any time that I’m not at my day job. The money that I earn online goes toward investing and toward paying bills. It also goes toward paying off debts.  I’m again tracking my online earnings.

Online Earnings Can Add Up
A $500 bill, public domain via Wikimedia Commons

I used to keep up with how much money I made each month. I set online earnings goals for the first couple of years that I kept this site up. The past couple of years, however, I’ve slipped up on this process. I’ve been focusing upon earning money online, but I’ve been reporting on the money that I’ve made from dividend income.

Dividend income is a great method of earning money in pajamas. I own teeny little slices of companies that pay me a portion of their profits. All I have to do is wake up and get the notification that I’ve earned a dividend.  This is an example of passive income, which I firmly believe is the best form of income.

Online Earnings For January

I’ve also been involved in active income in the past couple of years, and one of the methods that I’ve continued to earn money is via online activities. After giving it some thought, I decided that I might give regular updates to show you that it’s possible to earn money online (in your pajamas) in 2017. Here is what I earned via online activity in 2017:

Swagbucks:                                      $75.00
Freelance Writing:                      $259.60

Total Online Earnings 1/17:  $334.60

I can’t complain. The money that I’ve earned with Swagbucks has gone toward purchasing stock in high-quality companies. The rest of the online earnings that I’ve accumulated over the month have yet to be spent on anything. I would like to invest them, but I need to build up some emergency savings. How did you do via online earnings last month?

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Top 8 Ideas To Stay On Top Of Personal Finances In 2017

The following was contributed by Amy Nickson:

Many people ignore their personal financial health because they know fixing the problem is not an easy task. However, many people don’t even know where to start. Most of them ignore the idea of staying top of their personal finances, but instead of ignoring, you must take care of your personal finances to see good results in the coming year.

If you’re not sure where to start, this article may help you. Read carefully:

1. Keep Your Household Budget in Order

Once you create a budget system according to your financial ability, you can manage emergencies, save money for the future, and make some additional expenditures. A budget also teaches you how to overcome bad financial habits as well. Once you start following a suitable budget, you’ll be able to know the amount you spend and the amount you save. Thus, you can seek to save more after meeting your daily necessities.

Be Sure to Balance Your Budget
Be sure to balance your budget

2. Take Advantage of Free Budgeting Tools and Apps to Create Your Budget

Budgeting is not as scary as many people think. Many budgeting tools and apps are available online. If budgeting sounds dull, then install a free budgeting app on your smartphone and start using it. Soon you can see the positive results in your personal financial health.

3. Save More Money Than the Previous Year

Saving money is the only way to stay top of your finances throughout the year. If you have saved 15% of your income as of now, then try to increase your savings percentage in this year. Set aside 20% of your monthly income to save more than before. Don’t use the savings account for day to day purchases. Allow the money to grow and keep saving for a longer time. Thus, you will be able to build up a solid financial cushion.

4. Manage Your Debts to Stay on Top of Your Personal Finances

If you are carrying high-interest credit card debts, then you can consider a balance transfer to a credit card that offers low-interest rates. Try to find out a credit card that doesn’t charge a balance transfer fee. Don’t miss any monthly payment to avoid charges.

You may not be able to pay off all of your personal debts (credit cards debts, student loan debts) within few months, but you should start making extra payments towards your debts to pay them off as early as you can. Save money every month to make some extra payments toward your highest-interest debts.

For example,

If you’re planning a splurge of $100 this weekend, then use the money to make extra debt payments instead of splurging on something you don’t need.

This way strategy will be more beneficial in the long run by allowing you to be a debt-free person.

5. Start Funding a Retirement Account

If you don’t have a retirement fund yet, then open an account and start funding. If your workplace has a 401 (k) plan or an IRA, then take advantage of them to get the tax benefit as well. Remember, there is no particular time or age to invest money for your retirement years. The earlier you think about your retirement, the sooner you secure your financial future. Try to put money into a retirement account as soon as possible to take advantage of compounding.

6. Ask for a Raise

If you’re working hard and performing well in your workplace, then this is the right time to ask for a raise. Approach to your employer to attempt to get paid according to your capability. You can also consider a side hustle to boost your income. Go online to get a sample of ideas.

7. Financial Trouble? Seek Professional Help

Knowing the exact solution for each personal finance problem is not possible for most people. To get proper guidance and solutions, seek professional help. A financial advisor can help suggest the right option that helps you make the right decision.

For example:

Consider professional help before investing money, making a will, and taking out a loan.

8. Utilize the Internet and Subscribe to Coupons

Couponing is one of the most effective ways to save money in your daily life. It helps to save money on groceries and other household expenses. If you have a smartphone and an Internet connection, then you can sign up with many manufacturers’ websites to find branded coupons. Many companies offer coupons on a regular basis on the Internet so you must keep eyes open to grab some great deals on regular purchases.

Finally, setting goals for personal finances is important, but set realistic and achievable goals. Don’t imagine yourself as a multimillionaire at the beginning of your personal financial career. There is no such shortcut to becoming rich. You must earn money and save money with determination. Research well and read more to invest your money for the best return. Thus, you can ensure your personal financial health in future.

Author’s Bio: Amy Nickson is a web enthusiast. She works for Oak View Law Group, a leading consumer and bankruptcy law firm based in CA and operational across US. She loves social media, as it gives her endless opportunities to reach out to a larger audience in a more unbiased way.

Image Credit: stevepb via pixabay

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January 2017 Passive Dividend Income

It’s hard to believe, but the first month of 2017 is in the books. There are less than 330 shopping days left until Christmas. The end of the month is one of my favorite times of each month. It’s the time that I look back and tabulate my passive dividend income for the previous 30 days. As all of my brokerage and retirement accounts are updated, I can now add up how much I made passively in January 2017.

Why Dividends?

I’ve decided to build up a stream of passive dividend income through dividends because they come in whether I work or not. I own some great companies. These companies sell their wares or rent out their space 24/7/365. Many of them do so in many nations around the world. One of the coolest things about a dividend growth strategy is the fact that these companies frequently increase their payments with me doing absolutely nothing.

Passive Dividend Income Can Add Up
A $500 bill, public domain via Wikimedia Commons

My dividend income is admittedly quite low at this point. I’ve been working on building it up for less than two years. Any dividend income, however, is gravy. It’s currently a small snowball that’s building mass over time. This increased mass results from three components. These are more invested capital, reinvested dividends, and dividend raises. Put all of them together, and it should be hard not to see an increase in dividend income over time.  Therefore, to end your suspense, here is my passive dividend income for 2017.

January 2017 Passive Dividend Income

IRA Account:

General Electric (GE)                                 $9.60
Realty Income Corp. (O)                         $2.03

Total Passive Dividend Income:        $11.63

I did not earn any income from my taxable or 401k accounts during January. Therefore, only these two companies paid me anything. This was the first time that I’ve earned a dividend from Realty Income, but I should earn something every month, as this company pays out on a monthly basis. It also just announced a dividend increase of 0.8 cents per month. This increase added a cool $1 to my expected dividend income for the next year and allowed my to pass a dividend milestone.

Year-Over-Year Comparison

My dividend income was well off my record month in December. That’s the bad news. The good news is that it was more than double what I earned in the same month last year.  In January 2016 I only earned $4.48. Therefore, my passive dividend income grew by more than 162 percent on a year-over-year basis. Needless to say, I’m pretty happy with that result.

Additionally, my estimated dividend income for the next 12 months is up to $302.11. I’ve noted before that I like to track my dividend income in terms of the number of hours of freedom that it should give me based on a $20/hour salary. This means that I theoretically have 1 hour, 15 minutes of freedom each and every month. This should only grow over time, so I’m pretty happy about my progress. I updated my Monthly Passive Dividend Income page with these results.

How was your dividend income for January? Let me know in the comments.

If you’d like to keep up with my progress, be sure to sign up for updates in the email signup box near the top of the page. You can also follow me on Twitter.

Disclaimer: I am not a professional financial advisor. I intend this information for informational and educational purposes only. Perform due diligence before investing in any equities. See my disclosures page for more information.

Ibotta

Smashing Through A Passive Income Milestone

Passive each Passive Income Milestone takes time

I was just online checking my forward dividend income today. I had neglected to put in a raise from Realty Income Corp that allowed me to smash past a passive income milestone. When I started looking at the dividend growth as a great option for building a stream of passive income over time, the idea that the companies that I own giving out regular raises was one of the top concepts that drew me to this strategy.

A New Passive Income Milestone

I input the raise from Realty Income into my spreadsheet (I’m an Excel guy). I have ten shares, which is obviously not an impressive amount. But the raise put me up over $300 in annual anticipated dividend income.

Admittedly, this is not a huge amount of money. I’m now slightly above $300 in my estimated income for the year. That’s just slightly more than $25 a month.

Figuring Passive Income In Hours Worked

Every month when I give a new passive dividend income report, I look at how many hours of work I could theoretically take off by replacing active income with passive income. Every $100 passive income milestone that I pass effectively gives me five hours of freedom, theoretically for life.

With $300 built up, I’m now at 15 hours if I figure that I would need $20 of passive income for ever hour of work. That’s 1 hour, 15 minutes every single month. I would not need to pay any income taxes up to nearly $73,000 of income if the income  is related to qualified dividends. There would be no Social Security taxes coming out. I would not be putting any money into retirement programs.

That’s quite a lot of money coming out on a monthly basis that I don’t even see. Therefore, my current standard of living would not change much, if at all, if I made $20 an hour.

Isn’t This The Slow Way To Build Wealth?

Some of you might wonder if this is the slow way to build wealth, and you’d be right if you think that it is.  Each passive income milestone seems to take a while to hit; however, this is basically the only way to build wealth.

There are tons of get-rich-quick schemes out there. They generally tend to cut wealth rather than build it. Flipping a house can quickly turn into a money pit if you don’t know what you’re doing. Borrowing money to buy pork bellies isn’t any better. You have a better likelihood of getting struck by lightning than you do of hitting the lottery.

Building wealth is kind of like the story of the tortoise and the hare. Those who try the get-rich-quick schemes might look like they’re getting ahead, but they’ll tend to wind up with less wealth than the steady plodders who put away a little bit of their income on a weekly or monthly basis.

I’m thrilled that I’ve smashed through this passive income milestone, but it’s hopefully just one of many more to come.  What milestones do you use to track your progress? Let me know in the comments.

Also, if you’d like to keep up with my progress, be sure to sign up to get updates in the email box at the top of the page or follow me on Twitter.

Disclosure: I am not a licensed financial professional. Be sure to perform due diligence making any investments. I intend my posts for educational and entertainment value only.

Image Credit: African Spurred Tortoise by Photographer 2008, via Wikimedia Commons CC BY-SA 3.0