It’s important to have multiple income sources. That way, if one dries up, you have others to rely on. This is one way to achieve FI (financial independence). Dividend income is certainly one income source. But, as mentioned numerous times on this blog, it’s a very long strategy. It will take years, if not decades, for my dividends alone to support my lifestyle. But, with multiple income sources, I may not have to wait that long. So, to that extent, let’s examine my current income sources and the prospect of adding another income source in just a few months.
Income Sources
Let’s take a look at my various income sources.
A. Dividend Growth Investing
My first income source comes from my Dividend Portfolio. At the time of this writing, my forward annual dividend is $368.97. That equates to approximately $30.75 per month. Of course, I can’t retire off this amount. But, it can help pay a subscription or two. In fact, the amount is enough to cover my Acorns subscription and that of Amazon Prime.
It’s not much, but I’ll take it.
B. Pension
If you’re an avid reader of this blog, you know that I’m a very private person. For example, when I had a job, I would indicate that I was employed, but would not disclose who my employer was. Even though I am currently unemployed, I still remain a private person.
The good news is that I am currently receiving a small pension from my previous employment. I anticipate that I will be receiving this amount for the rest of my life (with small increases along the way). Consistent with my level of privacy, I’ve decided not to disclose the amount. But, with this pension, I’ll have enough money to put food on the table. So, I won’t go homeless, and I won’t starve. I may not be rich, but I won’t be desolate either.
C. Real Estate Investing
An interesting source of income for me comes from my real estate investing. I own 4 properties. Two of my real estate have long-term tenants, while the other two hosts short-term guests. For the two properties that have long-term tenants, I receive positive cash flow every month. On the other hand, the two properties that invest in short term rentals, I am struggling to make ends meet.
In fact, I incurred a massive loss on both short term rentals last year. This year, I am hoping to incur less of a loss, or even a profit. Only time will tell. But for now, I am counting my real estate investing as an income source (even though sometimes it feels like a money drain).
D. Unidentified Source of Income – #1
I am currently receiving income from what I’ve dubbed an unidentified source. This amounts to a little over $2000 a month. I’ve chosen not to identify this source of income due to my level of privacy. Nevertheless, I should be receiving this income for the foreseeable future. I may identify this in future posts, but not right now.
As long as the status quo remains, I can count on this income coming in.
Income Source Potential
There is a fair possibility that I might be adding another income source in just a few months. I am dubbing this as the Unidentifiable Source of Income – #2. Once again, I’m doing this for my privacy. This income source is not yet guaranteed. I had to apply for it (much like applying for another job). But, if approved, I can count on this income for the next year, and maybe the next two years.
Given the temporary nature of this income source, it will give me enough time to try and get another job if that’s what I choose to do.
It is true that personal finance is personal. Everyone who achieves financial independence get there differently. The above is just my path towards financial independence.
Final Thoughts
It’s great having multiple sources if income. When one income sources dries up, you still have other income coming in. As the saying goes, “don’t put all your eggs in one basket.”
The good news is that some of my income sources are permanent. In other words, I don’t have to worry about those funds drying up. But other income sources are not so reliable.
My real estate portfolio is sort of variable. I don’t know if the month will be cash flow positive or negative. Afterall, maintenance and other expenses can come up anytime to eat into the cash flow. In fact, I wrote about Murhpy’s Law on two separate occasions recently. But overall, I think owning the real estate is more helpful than hurtful. But again, only time will tell.
If I get approved for the unidentifiable income source – #2, I will post the info on the blog accordingly. You can consider this another job that I’ve applied for because if I get it, I will be definitely doing some work.
What did you think of this post?
Let me know your thoughts by commenting below.