My personal financial goals for the year include a few other things, but the top of the list and the main goal is to generate enough passive income. A year ago when I was contemplating the goal to set for 2014, I found it hard to believe that I would be able to reach $4,000, but I decided to shoot high and set myself that goal. Well, I am happy to report: Annual Goal Achieved!
Annual Goal Achieved
On a quarterly basis, I was right on target at generating the required passive income to reach my goal. The second quarter was a bit slower and I thought for a few days that I wouldn’t be able to achieve my goal since we were selling some of our investments to fund our home purchase. But things started looking up, and with approx 50 days left in the year, I was able to reach that goal. As expected, I am one happy camper.
A Note on Other Passive Income
I believe that it is important to not only diversify your investments to protect against unknown circumstances, but also to diversify income sources. My job and the active income that I generate still makes the bulk of my take-home pay; and that is what I intend to complement and eventually wean-off from – to achieve financial independence. While dividends are a great and robust way to achieve that, I do not rely only on dividends. Dividends from investments are simply one source of passive income and my goal last year was to add more sources. I managed to do that in 2013 and this year was all about growing those income streams.
Some people have pointed out that it is not truly passive, I like to consider it semi-passive. A lot of my “Other” income is achieved by my writing skills, either through my blog (which generates advertisement revenue) or writing for other third party sites. Writing is my hobby that I like to cultivate and combining that with my passion for investing and passive income, I have been able to forge an income stream doing something that I love. Besides, I already go through the exercise of evaluating stocks for my own investments, and writing it clears my thoughts; and sharing those thoughts with others validates and reaffirms my investment thesis by providing me with some feedback.
To introduce a bit more transparency, I have decided to separate out and breakdown my passive income goals for next year. I still do not have the target figured out, but will be sharing those in the coming weeks once I set it. A big thanks to all you readers for stopping by and the inspiration and comments. It has been a joy sharing these details with you. I wish you all the best with your own personal goals and hope you achieve them.