In short, we performed better than in 2019 but missed our planned financial targets set out here.
It’s been difficult all year, with COVID restrictions, working from home, buying a home, and seeing companies cut or suspend their dividends in our portfolio.
All companies set goals and managers monitor their implementation. Having a plan has been proven to help you get closer to those goals. We set our financial goals and they help us stay on track and better understand and plan our financial situation.
There is a new, unknown financial environment in which many governments are donating funds to support economies. I don’t know what consequences we will face because of this free money being pumped into economies. The purchasing power of money will likely slow further with inflation, and holding other assets such as good business shares, real estate, and other investments will be preferable to holding cash.
Therefore, we will stay on the path to financial freedom and continue to increase our income from our passive income sources. Let’s see how our 2020 financial goals served us this year despite the pandemic.
Dividends
We received $12,596 In profits. Two companies suspended their dividends and four companies reduced their dividends in our portfolio. We planned to receive $13,000 in winnings, and that missing $404 doesn’t seem like a failure this year.
Real estate
The income was from real estate $14,882. After checking the specific goal of this income stream, I discovered that I initially did not calculate the cost of maintaining the property last year. The planned amount was US$25,000 and would have to be offset by US$11,000 due to maintenance costs. Maintenance consists of property rental taxes, strata fees and management fees. Please note that this number does not include the mortgage principal that was paid off during this period.
Lending ring
Income from Lending ring Totaled $2,553 As expected. It was noticeable that small businesses were affected by the pandemic this year on this platform. Far fewer companies were looking for financing.
Check google!
For the first time I received a check $104 From Google this year. This income stream is only passive if you want a chronological order for your actions in any case. Otherwise, it is not a source of passive income, and to make it a significant source of income in one way or another, you have to invest time and research into it.
Broker payment
I’m not sure if this could be considered passive income, but the realtor we worked with to buy our house paid us half the amount he paid. We got it $6,965. This four percent invested money will generate a passive income of $278 per year. It’s something to consider if you’re looking to buy a property and know what and where to buy.
Get experience
Below is a chart of our planned financial goals and results over the past five years. In 2016 and 2017, we counted capital gains as income and stopped doing so starting in 2018. The past three years show that we have become more experienced at setting and achieving our goals.
Ah, it brought us our passive income streams $30,031. This is amazing! Passive income is $2,502 each month despite market uncertainty. It is already enough for us to live in some developing countries without having to go to work but we want to retire in beautiful Vancouver and therefore we have to push our financial goals to a higher and better level.