When planning my early retirement, in October 2030, I hadn’t realized just how steep a battle it would be. What I also hadn’t accounted for, is the power of “passive income”. I pit it in ” marks, as I don’t quite believe any income is truly passive. But you can work to build assets that have a cashflow.
Well, when reflecting on my on my current finances, I realized I had neglected this aspect. Here is what I own:
- a house (with a mortgage) which produces precisely 0 in income
- tech stocks (the company I work for, SIPP, and my ISA), 0 income
In fact, all my income is currently coming from my job, which is reasonable, but I need to scale to other sources if I am to reach my aim.
Think for example, on a video asset library (or YouTube, as its now known!) that pays you each month). I have recently started acquiring content to monetize and managed to get my side income to around £15 per month – or £0.50 a day.
Whilst this is a trivial amount, the best way to look at it is,
a.) how sustainable is this income
b.) what bills could this cover if I retired
£15 alone is nothing, but once you figure out to consistently do this, especially if it generates this income over the long-term, then I suggest trying to scale it.
I’ve pushed this figure, with around 6 hours work this month, from £5 to £15. This was after watching the original £5 earn my that for over 7 months. Clearly, the niche I am targeting is going anywhere soon.
If I can scale this to £50 it pays for most my “luxury” bills, if I can get this to £1000 then my mortgage will no longer exist.
Follow along to see if I can build this, I will update this metric each month. Who knows, maybe this blog will help one day too!