Driving For Dividends – January 2022 – Week 1

By | January 14, 2022
Driving for Dividends

The Driving for Dividends project continues. Every week, I drive for Uber and Lyft. Then, I take the rideshare income I make and transfer it to my M1 Finance account to invest in dividend stocks. This is a relatively new project, but one that I am committed to. It’s my side hustle so to speak. As the project is new, I intend on tweaking it here or there but by and large, the premise will be the same.

For starters, of the amount that I make from doing rideshare, I will invest only 70% of that income. I will take the additional 30% and set it aside for taxes. . That way I won’t have a huge tax bill in 2023. I didn’t do that for all the rideshare income I earned in 2021, so my taxes will be higher in 2022. Lessons learned. If during tax time, I happen to have money left over in this sinking fund account, I will invest the difference. But, that’s all stuff for later. For now, let’s dive in to see how much rideshare income I earned in the first week of January.

Driving For Dividends – Income

During the first week of January, I earned $116.84 in income broken down as follows:

JANUARYUBERLYFTWeekly
Total
TAXESAMOUNT
INVESTED
Week 1$34.73$82.11$116.84$35.05$81.79
Week 2$0.00$0.00$0.00$0.00$0.00
Week 3$0.00$0.00$0.00$0.00$0.00
Week 4$0.00$0.00$0.00$0.00$0.00
Week 5$0.00$0.00$0.00$0.00$0.00
GRAND TOTAL$34.73$82.11$116.84$35.05$81.79

As you can see, there are a few more rows and columns. Although I earned $116.84 in income, only $81.79 was invested in my dividend portfolio. That’s because I set aside 30% of the weekly income into a separate account for my taxes. I think that’s just good financial practice and that’s what I’m trying to do for 2022.

My decision to save 30% for taxes have some immediate consequences – specifically as it applies to how I report my income for the project. In December, I did not account for taxes. In order to make the numbers consistent, I’ve adjusted my December figures on my chart below to account for 30% less income (even though 100% of the money was invested in my portfolio). The reason for this is so I can compare apples to apples when I do my comparisons on a monthly and annual basis.

Annual Rideshare Income

Here is a graphical representation of my rideshare income earned in January in relation to the rideshare income earned in previous months.

Although January right now is below December, keep in mind that it’s only the first week of January. As the weeks go by, I fully expect that the investable income from January (that is the amount after taxes) will be higher than December. Stay tuned!

 I am just getting started. But I’m excited to report on my side hustle income on a weekly and monthly basis.

CONCLUSION

Week 1 was a slow month for me. My goal is to make at least $150 per week, and I get close every week to doing it. What’s really important is that I am getting in the habit of driving. In fact, I try to have a quota to meet every week and do my best to reach my goal. It will be easier some weeks and really hard at times, but every dividend counts! Little by little, I will slowly rebuild my portfolio with this new project.

What do you think of this post? Let me know your thoughts by commenting below.

3 thoughts on “Driving For Dividends – January 2022 – Week 1

  1. Pingback: Driving For Dividends - January 2022 - Week 2 - Dividend Portfolio

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