Emergency Fund Edited

Get Excited About Pennies

It's time to get excited about pennies!
Pennies add up to build dollars, and dollars add up to build wealth

My kids get excited about pennies. If they find one on the ground, they are sure to pick it up. I think that most kids are like this. I know that I was when I was their age.

As we get older, however, that excitement tends to fade. A penny by itself will buy pretty much nothing. Most adults tend to think of pennies as being pretty worthless. They are anything but. I’ll admit that pennies still excite me!

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Pennies are important building blocks. Five of them make a nickel. Ten make a dime. 100 make a dollar. When we get to dollars, we’re talking real money. Each and every penny that we find and pick up or earn in some manner is building block towards a better financial state of being. That’s why it’s important to get excited about pennies.

Think Of Pennies As Stepping Stones

I’ve already noted that pennies are building blocks. They can be important stepping stones to getting where you want to be. A while back, I read an article that got me thinking in this direction. Rather than pennies, it stated that millionaires are made $10 at a time.

Sometimes, we can make lots of pennies really quickly. This happens when we’re at work. When I started working, minimum wage was $4.25. I had it figured out that I made about 7 cents a minute at that rate. This meant that I earned a penny about every 9 seconds. I’d annoy some of my co-workers by stating things like, “I just made $0.21” after three minutes on the clock.

While $0.21 is not much to get excited about, the addition of many $0.21s over time started to build up. So much so that I had about $7,000 in the bank after a couple of years of working at a minimum wage job. In the interest of full disclosure, I’ll admit that I was in college and living at home. Still 7 grand for working part-time for minimum wage at McDonald’s wasn’t bad.

Many of my coworkers complained about the poor pay, and it was poor. However, I looked at my income in an optimistic manner. It gave me some freedom to do the things I wanted to do. It did’t take much for me to get excited about pennies.

The more pennies we make, but more pennies we can save. It was Ben Franklin who said that a penny saved is a penny earned. While pennies were worth more in Franklin’s day, the basic premise still holds true.

Get Excited About Pennies: They Help Build Passive Income

I’ve stated many times that my favorite type of income is passive income. I think this is the case because passive income comes to me whether I put in any effort or not. It’s just keeps rolling in.

Passive income trickles in whether I’m sleeping or working hard. My passive income from dividends started out at $0.02 a day when I first started tracking it. Rather than get frustrated that I only made $0.64 in a month, I looked at the $0.02 a day that I made as the start of something great.

Now, I’m making much more in terms of passive income, even a dollar or two a day in most months. It takes time and, yes, pennies, to build this passive income. My passive income growth is documented by my monthly dividend income posts. It’s been growing at a good clip.

Dividends are usually stated in pennies. With the exception of companies with really high stock prices, most quarterly dividends come in at less than $1 a share. As an example, I own some shares of AT & T. These pay me $0.49 a quarter. That’s 49 pennies, quarter in and quarter out.. The dividends from one share won’t pay for much, but if reinvested, these pennies can start to build momentum into something pretty amazing.

Those who own as few as 180 shares of AT & T could pretty much pay for the lowest priced cell phone plan from Cricket Wireless (owned by AT & T), which is $30 a month. That’s a pretty awesome concept, if you ask me. This would effectively constitute free cell phone service, all from a buildup of pennies.

Over time, enough pennies could actually fund your entire lifestyle. That’s really something exciting.

How To Make A Few Extra Pennies

Now that you’ve read up on how pennies are important stepping stones to the life that you want, you might wonder how you can make even more. There are pretty easy ways that you can make a few extra pennies online in your spare time if you don’t want to get a part-time job flipping burgers.

I’ve written several articles for the online freelance site Textbroker. For most of these articles, I’ve earned 1.4 cents a word. These pennies have added up to several thousand bucks over the past five years or so. Many times, I can average more than $20 an hour if I find jobs that I can complete easily.

Not everyone can write coherently though. I also have recommendations for these folks. There are many ways that you can make money online. Two of my favorites are Swagbucks and EarnHoney. I can earn by searching the web and answering some easy surveys on Swagbucks and by letting videos play passively with EarnHoney. It’s a few pennies here and there, but I cash out some of these pennies each and every month.

With the money I’m bringing in from letting videos play, I’m buying shares in stocks like AT & T that pay me even more pennies. I’ve also put this money toward paying off debt in a more accelerated fashion. This is what allows me to get excited about pennies. I’m improving my financial situation with each and every penny I get.

I’d urge you to get started looking for ways to pick up a few dollars worth of pennies each month. How much could an additional $25, $50, or even $100 each month help you out? It takes a new mindset to think of pennies as worth the trouble. Get excited about pennies!

Be Sure To Follow My Updates

If you’d like to follow my progress each month, be sure to go to the top of the page and sign up for updates. You can also follow me on Twitter.  I’m now above 300 followers, and I’d like to get more than 400 by the end of summer. You can help!

Also, if you could share this latest update below via Twitter, Facebook, or any other social media platform, it would be much appreciated. I want to inspire others to improve their finances and show them some easy ways that they can do so. Just click on the “Share This” link at the bottom of this post!

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Emergency Fund Edited

Splitting Funds For Paying Debt And Making Investments

I’ve frequently argued that passive income is the best income. I’ve attempted to build it up extensively over the past couple of years. One of the best methods for building up passive income, in my opinion, is through dividend-paying stocks. However, when building up passive income, paying debt aggressively can take a back seat.

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I had some debts that built up from graduate school, and I’ve made quite a bit of progress over the past four years or so. Most of these debts arose from basic living expenses. I really hate this debt, even though many people argue that it’s “good” debt. There is no doubt that these debts allowed me to increase my earnings capability, and my income has gone up.

However, I still don’t like these debts. I’ve consolidated the debts into 0% interest credit cards, finally getting down to one. Until the last month, I’ve been paying slightly more than the minimum each month after having the debt drop to about $8,600. This is not a huge debt when compared to the debt that other people have, but it’s still an annoyance.

Paying debt needs to be a priority!
Erasing debt is a goal.

Investments Can Pay More, But…

One of the reasons I was paying so little each month was the fact that investments generally pay more than 0% in dividends. Therefore, I thought that paying debt down aggressively would keep me from increasing my passive income. I was right. However, watching this debt go down by a whopping $100 a month did not seem like much progress to me.

Additionally, there’s a 3% to 5% balance transfer charge every time that I make a transfer (about once a year). This is effectively a once yearly interest payment that would add between $30 and $50 per $1,000 to the balance each and every year.

At this rate, I figured that I’d have the debt paid off in somewhere between 8 and 10 years, and the balance transfer fee would actually add back 2 or 3 months of payments that I’d already made in the earlier years of the process. I really hate having this debt, even though I’m really happy with the progress I’ve made thus far.

Paying Debt Is A Priority

I believe that cash flow is even better than cash, and debt takes part of my cash flow every month without giving me anything in return. Because there is some opportunity cost in paying debt, I’ve decided to take a hybrid approach. Whereas I was putting more money toward investments each month, now I’m splitting up some of my side hustle income into both the investing bucket and the paying debt bucket.

I figure that if I can put an additional $50, $100, or $200 a month into paying off my debt, I’ll pay it off in less than one-half the time that it would take by paying a minimal amount. Then, my cash flow will increase by the amount that I was putting toward paying it off. This is exciting.

If you’d like more advice on how to accelerate debt payments, I’d refer you to Dave Ramsey’s Total Money Makeover. You can purchase this great resource by clicking the image of the book below.

So Is Investing

I still want to build up my investments, however. Therefore, I’m splitting up the side hustle income that does not go toward bills between paying debt and investing for the future. This allows me to build passive income while also cutting the interest that I’ll pay. Additionally, I’ll improve my cash flow more quickly.

I can invest my side hustle income and get dividend income that will probably yield between 2 and 5 percent. I can also pay down my debt and get a “dividend” of between 3 and 5 percent. The dividend that I get from paying down the debt is the interest that I will not have to pay.

While this strategy is not going to maximize my success in either the area of passive income or debt repayment, it will hopefully allow me to make some solid progress in both areas. I’m happy to live with this compromise.

In the first month of this strategy, I was able to double up the credit card payment that I’d made for the past few months. My debt dropped from $8,600 to $8,400 in the first month as a result.  I made a few smaller payments rather than one big payment to see the progress come more quickly. I hope to keep this up in the months to come so that I can aggressively cut down the debt.

The closer I get to paying the debt completely off, I’ll be more likely to become more aggressive in paying it off as opposed to saving. I realize that paying debt is a good investment for the future. However, I still want to see some passive income and take advantage of the power of compounding.

What strategies have you used for paying down debt?

Other Posts That Might Help

Earn Money From Home To Pay Off Debt
Ways To Make Money Online Without Spending A Penny

If you’d like to follow my progress each month, be sure to go to the top of the page and sign up for updates. You can also follow me on Twitter.  I’m now above 300 followers, and I’d like to get more than 400 by the end of summer. You can help!

Also, if you could share this latest update below via Twitter, Facebook, or any other social media platform, it would be much appreciated. I want to inspire others to improve their finances and show them some easy ways that they can do so. Just click on the “Share This” link at the bottom of this post!

Disclaimer: This site has affiliate links. If you decide to sign up with one of these affiliate links, I may be compensated. I appreciate any support you might provide.

Emergency Fund Edited

Dividends: Passive Income From June 2017

The month of June 2017 is over. The summer is about half over. That’s not cool, but what is cool is the passive income that I get from dividends each and every month.

The end of the month is a great time to look back and assess where I am. I look at my dividends and where they stand in relation to the same month last quarter and the same month last year. This gives me a good idea if I’m making progress toward my goal of building up passive income. As I’ve noted many times, passive income is the best income.

I like dividends because they come in whether I’m at home or at work. They come in whether I’m awake or asleep, which means I can really earn money in pajamas. At home or on the road? It doesn’t matter. This passive aspect of dividend income is one that I really like.

I own some great companies, and these companies sell goods or serve clients around the world on a daily basis. I can take Christmas completely off, and I’ll still have dividends rolling in from these companies. In June, I earned from several companies and a couple of funds. Here are the dividends that I earned during the month of June.

Dividends For June 2017

Here are the specific companies and funds that paid me a dividend during the month of June 2017:

Kroger Co. (KR)                                                                                                 $2.40
Southern Company (SO)                                                                            $17.40
Johnson & Johnson (JNJ)                                                                              $8.40
Realty Income Corp. (O)                                                                                $5.28

Total Dividend Income From IRA                                                            $33.48

JP Morgan Equity Income R5 (OIERX)                                                   $1.96
Cohen and Steers Realty Shares (CSRSX)                                          $21.79

Total Dividend Income from 401k                                                          $23.75

Total Dividend Income for June 2017:                                            $57.23

This dividend income is the highest that I’ve earned thus far this calendar year, and I must say that I’m pretty happy with it. Of course, this much passive income would not go far, but it is another step in the right direction.

Year-To-Year Comparison

I like to look at my monthly dividend income and then compare it with the amount that I had a year previously. Again, this is a great way to show me if I’m on the right track.

In June 2016, the companies that I owned at the time paid me $18.82. It’s pretty evident from a comparison that I more than trebled my dividend income over the past year. I’m thrilled any time that I see such large increases on a year-over-year basis.

Passive Dividend Income Builds Up Slowly But Surely
My dividends continue to build slowly, but surely.

The companies and funds that I own have now paid me $206.64 for the year. This compares with the $61.60 that I had earned at this point last year. My passive income has increased by more than 200 percent in just a year.

Furthermore, I’m now on track to earn $454.05 over the next 12 months in my traditional IRA account. This would buy me about 22 hours and 45 minutes of freedom over the next year without taking into account the dividends I earn from my 401k funds. I track this based upon having to replace $20/hour. I’m getting up close to the two hours a month level.

I can’t believe how far this has come from the $0.64 I received from Apple back in August 2015. This was the first of the dividends that companies have paid me, and the amount has only gone up from there. How was your dividend income last month? I’ve updated my monthly dividend record to reflect my dividends from June 2017 if you want to check out my progress.

Disclaimers And The Like

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 or via the popup that asks you to sign up. 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. I’m long KR, O, SO, JNJ, CSRSX, and OIERX.


Emergency Fund Edited

Passive Dividend Income, May 2017

Another month is in the books. May has come and gone. We are now past Memorial Day, which was traditionally the beginning of summer vacation, although many are still in school. The end of the month is a great time for reflecting on how the previous month unfolded. It’s also a good time to look into passive dividend income.

I started investing for dividend income nearly two years ago. I had been reading popular personal finance blogs like Mr. Money Mustache and popular PF books like Dave Ramsey’s The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness, which I highly recommend if you’ve not yet read it. (You can click the link above or the image below if you want to buy it and support me just a bit). Just about all of these financial gurus recommend spending less (sometimes much less) than you make and then investing the rest.

Then I came upon the old Dividend Mantra site after reading an interview on Mr. Money Mustache. This guy, Jason Fieber, was in the process of documenting the growth of his dividend growth portfolio with a goal to come up with enough passive income to live off of indefinitely, thus making paid work optional. I thought this was a great idea and bought my first dividend-paying stock in July 2015.

Now, I’m nearly two years into this journey. My first dividend was a whopping $0.64 from Apple. I’ve since sold that stock for a profit to pay off some debt, and I’ve now started emphasizing investment through an IRA rollover. My income has grown from that point, exponentially, in fact. However, I’m nowhere near what I’ll need to pay for my expenses. This is a long game.

Why Passive Dividend Income?

You might wonder why I focused on dividend income rather than total return or guessing which stock might take off like Apple or Google. I like the idea that a dividend is a return of some of the capital that I’ve invested. Companies cannot pay them out for the long run without actually having the cash flow and profits to sustain them.

Companies that have long dividend streaks have increased revenue and earnings per share over time. Some of them have done so through multiple recessions. These are the companies that I tend to like the most. I have some relatively high yielders and some that have low yields. But I like the cash coming in each month.

Passive Dividend Income Builds Up Slowly But Surely

Last month, I was in Europe on a (sort of) work trip. I got two separate emails during the trip that indicated dividends had posted to my account. I can literally be anywhere in the world, and I’ll have income flowing in because the companies that I own make money on a daily basis. Passive dividend income flows toward me no matter what I might be doing at a given moment. My money is working for me, and the more money that I put to work, the harder it will work.

Passive Dividend Income For May 2017

During the month of May, I earned (actually received, as it’s unearned income) dividends from three of the companies that I hold in my traditional IRA,. I also received a dividend from one fund in a 401k plan. Here is the income that passively came my way in May 2017:

AT & T (T):                                                                                      $7.35
Omega Healthcare Investors (OHI)                                $31.50
Realty Income Corp. (O)                                                          $2.11

Total for IRA Account:                                                           $40.96

JP Morgan Equity Income R5 (OIERX)                            $3.14

Total Passive Dividend Income for May:                 $44.10

I must say that I’m pretty happy with this amount, but it should grow in August, as I’ve added to both AT & T and Realty Income since the last ex-dividend date. This means that the monthly payout should be even larger.

Year-Over-Year Comparison

Last May, I earned only $9.18 for the entire month. This means that my $44.10 is a 380 percent increase in just over a year. I can’t complain much about that.

My dividend income in terms of the number of hours of freedom that it will buy me is something I really like to track. I could have bought just more than 2 hours and 12 minutes of freedom in May, based upon my belief that $20/hour would take care of my current standard of living pretty well.

I’ve now earned $149.41 for 2017 to this point. That’s just a hair below $30 a month. My forward dividend income for the next 12 months should come in right around $438.45. This is just short of 22 hours of freedom. I like my job and would probably continue to work should I actually get enough passive income to pay for my lifestyle. However, the ability to scale back would be pretty amazing.

I’ve basically gone from $0 in monthly dividend income to $36.53 on average (based on the $438.45 noted above). This took less than two years. With the reinvestment of dividends and new capital added, this snowball should continue rolling and picking up steam into the future.

How was your dividend income in May? Is it going in the right direction? I’ll be updating my dividend income page to reflect this month’s income.

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. I’m long T, O, OHI, and OIERX.


Emergency Fund Edited

Extra Online Income: Have A Plan For Success

Making money online is one of the main topics of this blog. Extra online income became extremely important to me when my wife quit work to take care of kids. I needed to find more income, and I needed to do it fast.

Extra online earnings can benefit your bottom line.
Photo Credit: FirmBee via Pixabay (public domain)

I had already worked in the fast food and retail sectors, and I knew that they did not pay all that well. My memories also told me that they took up a great deal of time away from home. This was all well and good for a single guy who lived at home. It was not, however, a great idea for a married man with kids.

This need for money drove me to look for ways to supplement my income via the Internet. Over time, I learned about some really good ways to make extra online income. I’ve also found that there are some important goals that make earning money online more sustainable.

Having A Plan For Extra Online Income Is Key

Looking at making some extra income “just because” is a reason to start earning. However, it’s probably not going to make most people sustain their efforts.

At first, I absolutely needed the income to make ends meet. This need to keep my bills paid was a pretty good motivating factor. I still need some income to supplement my income, but this need is not as urgent as it once was. This is where a plan comes into play.

I’ve recently been tracking my monthly extra online income. I have a few different streams that I tend to make money from each month. Whether it’s freelance writing or earning from Swagbucks, I try to make a few hundred extra dollars each month.

It’s easy to make money with Swagbucks. All you need to do is search the web with the site, and you could make a few bucks each and every month that you can use on anything from Amazon.com gift cards to PayPal cash. I’m currently using mine to build up a passive income stream via dividend-paying stocks. These dividend payments might help me retire a bit earlier than I could without them.

Paying Down Debt With Extra Online Income

Another goal, in addition to investing my online income, is paying down debt. Some people might look at this strategy as a form of investing. After all, I’m getting an automatic return that’s equal to my interest rate.

I still have about 26 years left on a mortgage. This is a long time, I know. I also know that I’ll pay quite a bit of interest on that loan over the long haul. While my current interest rate is not all that high, I don’t like the idea of having this debt until I’m nearly 70.

Debt Can Cause Stress
Debt can cause stress!


Therefore, I’m using some of my extra online income to pay down my mortgage. In the early days of my loan, most of my payment goes toward paying the bank interest. I remember a previous mortgage that I had at 6.125 percent interest rate (this was a few years ago, but a good rate at the time). About $70 of my initial payment went to paying down the loan. The rest, nearly $400, went to the bank.

I could have paid an extra $70 to $80 a month that first year and cut a month off the end of the loan for each extra payment. It’s not that hard to earn $70 or even $170 a month via online efforts.

While it might seem that answering surveys does not pay well, it might actually pay more than an actual job that you have to drive to. I’ve written about a scenario in which a woman making about $19,000 a year actually earned about $0.64 an hour after deducting expenses that came from working outside the home. In this instance, yes, answering surveys might improve your finances more.

Small Steps Make Big Differences

There are expenses that come from driving to work and dressing the part. If you already have a computer and Internet access, your cost is basically electricity. This could be a whopping $8 a YEAR! to charge. That’s a little more than $0.02 a day.

Just this last month, I paid an extra $14 toward my mortgage from small payments that I earned from GiftHulk and Clixsense. This might not sound like much, and it’s not. However, if I continue to add just $14 to my mortgage payment each month, I’d pay it off nearly 1.5 years earlier than the scheduled payoff date. I’d also save more than $3,000 in interest payments over the life of the loan. I’m sure I could find a better use for $3,000 than handing it over to the bank!

There’s a cool amortization schedule at Bankrate.com that allows you to play with the impact of extra payments. That’s where I came up with these numbers.

Small steps can make a big difference over time. This is why it’s important to have a plan for what you can do with your extra online earnings. Seeing progress toward these goals can help keep you motivated toward achieving them.

Perseverance Is Key With Extra Online Income

My goal is to see these earnings and passive income streams grow over time. If I’m able to do so, my mortgage payoff might come quite a bit quicker than what I’ve listed here. I might also be able to quit driving to work every day a few years earlier than most people–by choice, not by necessity.

You, too, can earn some extra money online, whether it comes from searching the web on Swagbucks or GiftHulk or answering some surveys on a site like CashCrate. There are also many freelance opportunities that can help you earn additional income. What will you use the extra online income you earn in your pajamas for? Having a plan can help you improve your finances, and the quicker that you can improve your finances, the better off you’ll be.

Disclaimer: This post includes affiliate links. I may be compensated should you sign up using my link. You will get the same benefits regardless of how you sign up, but I appreciate any support.

If you enjoyed this post, be sure to sign up for the monthly newsletter that will keep you up with the latest posts. Also, you can follow me on Twitter.

Emergency Fund Edited

Online Earnings For April 2017

Online earnings can benefit your bottom line.
Photo Credit: FirmBee via Pixabay (public domain)

The month of May 2017 is about a week old. April is long gone, and I’ve already updated any readers on my passive dividend income for April 2017.  Now it’s time to write about my online earnings for April.

I love passive income, but the biggest problem with this type of income is the fact that everyone starts at $0.  That is, unless you’re a trust fund baby. You have to earn active income before you can receive passive income.

Even in the instance of people who get born on third base, someone had to earn the capital to produce the passive income to start with. I’m in the accumulation phase of this journey.

Dave Ramsey likes to say that your biggest wealth building tool is your income. If you can build up passive income that covers your expenses, you’re financially independent. You’ve reached the “pinnacle experience” that Ramsey mentions.

However, if you’re not yet there, you still have to earn your income. This will usually come from a job. Doctors and lawyers and engineers tend to make enough to build wealth pretty quickly. Most of the rest of us, not so much.

This, dear readers, is why I started attempting to ramp up online earnings several years ago. I figured that I needed to bring in some more income than my job provided.

I’d worked fast food and retail in college. I knew I did not want to do so again. That’s why I started investigating ways to make money online, preferably in my pajamas–hence the name of this site.

I earned some side money in April. Here’s how I did so.

Online Earnings For April

I had online earnings from three different sources in April. Keep in mind that these avenues took a bit of effort on my part. They were definitely active income. Here is my online income by source for April 2017:

Freelance Writing:                                                                                                $218.02
Swagbucks:                                                                                                                  $50.00
GiftHulk:                                                                                                                          $5.00

Total Online Earnings for April 2017:                                                      $273.02

This is about an average month for me. As I’m looking to build up passive income, I could increase my passive income by nearly $11 if I invested all of this money into a dividend stock that pays a 4 percent yield. That’s enough to buy me about 1/2 an hour of freedom based upon my estimate of needing $20/hour to keep up my current standard of living.

I’ve had people ask where I earned money for freelance writing. I’ve earned several thousand dollars writing on Textbroker over the past few years. This is a site where people who need articles/blog posts/marketing materials written post opportunities for enterprising individuals like myself. You can claim any that are available at the level you’ve qualified for.

I earned a bit of money from GiftHulk this month.  This site pays users for the first search they perform each and every hour. You can also perform other tasks like watching videos on GiftHulk TV to earn more “Hulk Coins”, which is the digital currency that you can cash out.

I used my Hulk Coins to get PayPal cash, which I put toward paying down my mortgage. This will effectively earn me a return of 4.125 percent, which is my current interest rate. You can sign up for GiftHulk here if you want to start earning a few bucks in your spare time.

I also earned some income from Swagbucks.  This is a site that’s pretty easy to use. You can use the money you earn here to build wealth over time. Here’s a resource with the general strategy that you can use to start growing passive income via Swagbucks.

Benefits Of Earning Online

One of the biggest benefits of earning money online is the fact that just about anyone in America can do so. For sites like Swagbucks or GiftHulk teens as young as 13 can earn.  Most freelance writing sites will require you to be an adult.

If you’re smart, you can use the money you earn to do great things like pay off debt or save for the future. Whether you pay off debt or save money, you’ll earn a return that’s equal to the interest rate. You can avoid paying interest if you pay off debt. You can earn interest or dividends if you save. It’s a win-win situation regardless.

Online earnings are only limited by the time that you spend and the effort you put into making money. Also, it’s a good idea to think in terms of the future. A dollar today is worth more than a dollar in the future when you think of the power of compounding. The time to start earning is today so that you can take advantage of that power.

If you’d like to follow my progress each month, be sure to go to the top of the page and sign up for updates.

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April 2017 Passive Dividend Income

Passive Dividend Income Builds Up Slowly But Surely

The month of April is not quite over yet, but my passive dividend income for April has all arrived in my accounts.  The end of the month is one of my favorite times, because I get to tally up the passive income that I earned from dividends over the previous 30 (or so) days.

April was the first month of the second quarter. This means that fewer companies tend to pay out, which hurts my income from my 401k fund. Regardless, all of the companies that I own continued to work making money for me.

Every share that I own is an ever-so-small slice of the company that issued the shares. In effect, I own 0.0000000001 percent of these companies (or some other such minuscule number). Regardless, I love the fact that they work on the other side of the world while I’m sleeping to make me money.

Regardless of what I do in a given month, I get paid. Of course, I have a regular job and work hard to supplement that income, but it’s good to know that I have a growing stream of passive dividend income. Here are the companies that paid me in April:

Passive Dividend Income For April 2017

Taxable Account:

Coca-Cola (KO)                                                                           $3.24

Traditional IRA:

Realty Income Corp (O)                                                          $2.11
General Electric (GE)                                                                $9.60


JP Morgan Equity Income R5 (OIERX)                        $0.01

TOTAL DIVIDENDS FOR APRIL 2017:                         $14.96

Yes, I earned a whopping penny from my 401k. Not terribly impressive, but better than nothing, I suppose.

Year-To-Year Comparison

Admittedly, not even reaching $15 might cause frustration for many people. However, when I look at this amount and compare it to the same month last year, I earned only $8.90 last year. This means that I increased my dividend income by 68% in just 12 months.

Increases of this size will not continue indefinitely, but they are pretty cool. They also help me build up my passive dividend income. They are important building blocks toward my goal.

I’ve now earned $105.31 so far in 2017. At this point last year, I’d earned only $33.27. This means that my passive dividend income is up 217% in just a year’s time. Pretty cool. Onward and upward.

I have to point out one thing, however. I sold all of my taxable investments over the past month, because, as I noted  previously, Loyal3 is shutting down. As this was my taxable investment vehicle of choice, I sold out and put the money into my Traditional IRA, hoping to cut my taxes for 2017 in the process.

This means that you’ll no longer see some of the common dividend payers on my reports previously. I wanted to let you know why.

I replaced my taxable holdings with more AT & T. This brings my estimated dividend income (not counting the 401k) to $398.90 for the next 12 months. I’m only one more purchase or one more dividend raise from crossing over the $400 mark. Again, pretty cool stuff.

How was your dividend income for April? Let me know in the comments. I’ve also updated my passive dividend income page so you can see the growth of my income over time.

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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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


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


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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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