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Hello!

Sorry for the delay in posting! My finger is mostly better, so my typing is basically back, which is good news.  I've been diligently studying for the PMP (project management professional) exam with all of my free time, and so that is why I really haven't written. I imagine I'll pick back up the frequency in a month or so.

General Thoughts on This Month: January started off nicely, with no issues and no surprises.  Though I feel very thankful for the system I've created, I still feel "cash poor", with everything either being reinvested or used for paying down debt.  Eventually that should change! Though it is taking much longer than I thought, or like.

Another reason for the delay in posts is that I changed my system for how I track and report my numbers, now using pivot tables in excel, making things much easier to track and analyze, but the shift to make this happen took a lot of work.

Anyway, this month I received $1,012 in passive income!  This is the first January ever to be in 4 digits! Here are the details from this month below:

Dividends and Rental Income Received
I have some individual stocks, but mostly mutual funds, and also four active rental properties, which if you've been following my story have varying levels of success: my Missouri Rental my Colorado Rental, and my two North Carolina rentals: North Carolina 1 and North Carolina 2.  Listed below is the cash flow that each of these assets provided this month:


In summary, with dividends and rental cash flow combined, Total Passive Income Received: $1,012.

Purchases
I always do my best to add to our Roth IRAs in January and this January was no different.  I basically just bought around $500 or so of mutual funds on every major down day during the correction, investing around $2k total.  My advice - STAY THE COURSE!

Thoughts on This Month
This was a great month for Passive Income, and I am thankful for this month's performance. Compared to last year's January total in 2017 of $377, my YoY growth for this month was 168%. Not a bad way at all to start the year! I'll note that last January I only had 2 active rental properties...now I have 4, which accounts for the major increase in YoY growth.  This should continue through June, at which point actual, new growth will be more accurately measured.

With the addition of this month's income to my Progress Tab I now have earned $1,012 in total this year in passive income.  Little behind my desired pace, but I expect big months on the 3-6-9-12 cycle to hopefully make up for it.

Thanks for reading as always. I greatly appreciate your comments and will do my best to always respond. 

Dan
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What an amazing way to end the year! I literally cannot believe how it ended.  For the last few months I had been saying that I thought it would be a "photo finish" as to whether or not I would reach my passive income goal for the year (of $13,000).  Going in to December, my total was only $9,189 and so I knew I would need a monstrous December monthly total if I was going to make it.

Well, I am very happy to report that I achieved my goal with a grand total of $13,194.24!

Side note - my finger is still in cast and so I will keep this post short, but I do plan to do a 2017 Annual Review in a few weeks where I will highlight more details.

General Thoughts on This Month: This was my best month since the creation of Passive Income Dude with a grand total of $4,004.76 earned in completely passive income.

What an incredible blessing! The system is working and I am patiently watching the snowball pick up momentum! It is incredible to see what the power of patience and compounding can do to your returns. Here are the details from this month below:

Dividends Received



*All dividends are always reinvested.

There are a few very cool things that happened in this month's total in regards to dividends that I would like to highlight quickly:

1) This is the first time ever where a single holding had a payout in the 4 digits! Vanguard Wellington was a huge payer for me at $1,078 by itself!

2) This is the first time I've ever had a monthly total in the $3000s.  This is awesome and definitely did not happen over night.


Rental Income Received
I have four active rental properties, which if you've been following my story have varying levels of success: my Missouri Rental my Colorado Rental, and my two North Carolina rentals: North Carolina 1 and North Carolina 2.  Listed below is the cash flow that each of these properties provided this month:



As you can see from above, this month had over several hundred dollars in real estate expenses, which I always hate because they come right out of my bottom line cash flow total.  Thankfully 3 of the 4 properties still were positive.

In summary, with dividends and rental cash flow combined, Total Passive Income Received: $4,004.76


Purchases
I added a little more to my wife's ROTH IRA (~$750), but it was in a few small chunks and I'm still paying down debt and de-levering currently.  Nothing exciting.

Thoughts on This Month
This was an incredible month for Passive Income, and I am so thankful for this month's performance.

Compared to last year's December's total in 2016 of $2,658, my YoY growth for this month was 50.7%. This puts my annual YoY growth average at 60.7% per month. 

With the addition of this month's income to my Progress Tab I now have earned $13,194 in total this year in passive income.  

Thanks for reading as always. I greatly appreciate your comments and will do my best to always respond.  It's been an incredible year and I will save a lot of my concluding thoughts and analysis for my annual review post in a few weeks.  And once my finger heals I will try to write a little more.  Additionally, I've made some improvements to how I track and analyze the data, which I will start in 2018 as well. Take care!

Passive Income Dude 
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My apologies again for the delay.  Finger is still in a cast....just got x-rays again today and will be wearing this thing for the next 3 weeks.  Looking forward to this injury being in the past!

But, I have been working hard on a new method to track and capture my progress, so I'll be releasing that for the start of 2018.  Getting pretty solid with databases and pivot tables!

Anyway, I didn't want to miss November's relatively decent passive income report, so without further adieu...

General Thoughts on This Month: With one month of 2017 left, it is literally going to be a photo finish for whether I hit my primary passive income goal or not.  This month had around ~$100 in real estate maintenance expenses, which come completely from my bottom line and reduce passive income by the expensed amount. Agh.

All of that said, below are the details from the $997.26 this month I received in passive income. DECEMBER is my multi-thousand passive income month, so I'm greatly looking forward to seeing where the year ends in a few weeks.

Dividends Received



*All dividends are always reinvested.

Rental Income Received
As mentioned last month, I now have four active rental properties, my Missouri Rental my Colorado Rental, and my two North Carolina rentals: North Carolina 1 and North Carolina 2.  Listed below is the cash flow that each of these properties provided this month:



In summary, with dividends and rental cash flow combined, Total Passive Income Received: $997.26

Purchases
I've added a little more to my wife's ROTH IRA (~$1000), but it was in a few small chunks and I'm still paying down debt and de-levering currently.  Nothing exciting.  But that is also part of the beauty of the process!

Thoughts on This Month
This was a solid month for Passive Income.  Compared to last year's November's total in 2016 of $581, my YoY growth for this month was 71.6%.  This puts my annual YoY average through the first 11 months of this year at 61.8% per month. 

With the addition of this month's income to my Progress Tab I now have earned $9,189 in total this year in passive income.  One exciting note is that I now have surpassed my 2016 yearly total! ...With one month to spare!

Unfortunately this month actually represents a small 'loss' in the ground I need to make up in order to reach my passive income goal. I still think it is going to be a photo finish actually as to whether or not I achieve my primary Passive Income Goal.  But in summary I'm counting on a MASSIVE DECEMBER if I'm going to make it!

Thanks for reading, and I always appreciate any comments,

Passive Income Dude 
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I recently broke my finger pretty badly, and am now in a cast and am unable to type very well for the near future. Frustrating!

But things could be much worse and I apologize for getting this report accomplished so late. Unfortunately I will have to keep it short.  But I will follow with my November passive income total in several days.

General thoughts on this month: This was a good month for us.  Each month we stick to a relatively general, but very closely monitored plan and we continue to de-lever with everything left over.  November's and December's expenses are always extremely high, so thankfully this was a good month.  Until my finger heals and I can type again...


Thanks for reading!
Dan
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In this post, I'd like to share a draft  plan of what I think my 2018 Financial Goals will be.  It's only November of 2017 still, so I've got a few weeks left to adjust any of these goals if necessary, but as it stands right now I think these will be what I strive for in 2018, from a financial perspective.

My primary purpose with these goals is simple: to give me a benchmark of success, to know where I should be heading when things are unclear, and to evaluate how well I am doing over the long 365 days we have in 2018.

For this year I decided on 10 financial goals (in 2017 I had 10 as well), but this year I am adding what I will call a "stretch goal" as well - a goal that is far out of reach, one that I may strive for (or may not), so if it does end up actually happening, awesome. But if it does not, no big deal. Spoiler - this year's stretch goal is real estate related.

I tend to put a lot of thought into picking these goals and narrowing them down to only my top 10. But on the other hand, I also tend to think that one's financial success is more about the discipline of sticking to a plan over time than it is about coming up with the right, very complicated, or detailed, plan.  In my opinion, financial success is rather straightforward: save more than you earn, diversify, and invest wisely over many, many years. That is pretty simple. But it is definitely not easy. It is actually very hard sticking to your plan, day in and day out, when others are doing many other more exciting things, or taking exciting vacations, while you are diligently sacrificing and not derailing your plan with poor investment choices or reckless spending.

Let's take a look now at my goals for 2018. I'll be turning 32 years old this year, and will be entering the 3rd year of Passive Income Dude. With all of that said as an introduction, I'm anticipating BIG THINGS AHEAD!  Here we go:

1) $17,000 Earned in Passive Income.  

Passive Income is the primary focus of this site, and therefore the amount of passive income I earn each year is always (...and will always be) my primary financial goal.  For 2018, I think $17,000 by year end, which equates to a massive $1,416 per month, is an appropriate goal.  I'd like to share what I believe it will take to get there:

First, if I hit my goal for 2017 of $13,000, then $17,000 would represent a year-over-year growth of about 31%.  Ambitious, for sure, but achievable with the right steps and focus. I'll need to contribute a lot of new capital, avoid major maintenance or repairs in my real estate, and definitely avoid any long term vacancies.  Now, if I come up short on my 2017 goal of $13K, then this number will be even harder to achieve. But I doubt I will lower it from $17,000. $17,000 is the number in my mind, and so that is what I am shooting for!

2) $20,000 Cash Saved.

With the growth of my portfolio and family over the last few years, at this point I have kind of been playing with fire given how little of a cash cushion I have. Despite having 4 properties, a wife, two kids, and two cars, believe it or not I OFTEN have less than $100 liquid cash in my checking or savings account. Every month its $100 or less, believe it or not. This has to change. But this is going to be a very challenging goal; requiring serious discipline and sacrifice. None of these goals are easy, but that's what make them important and rewarding when they are completed.

Anyway, it's time to have an appropriate cash-cushion, and I think $20,000 by the end of the year is the right number. I will be starting the year with essentially $0, so this will be a good goal for me, and is my 2nd most important goal of the year. Does anyone have a recommendation for how much liquid capital you think one should have?

3) 30% Savings Rate Per Month.

My 3rd most important goal this year is my savings rate per month. In 2018 I think 30% is appropriate. While I think savings should be towards the top of anyone's financial plan, I also think that living and giving are actually more important, so I don't want this number to be much higher than what I've listed. In fact, 30% is 2% higher than my 2017 goal, and so I think it will take a good amount of effort to achieve 30%/month.

4)  Max my Wife's ROTH IRA

My next two goals are both IRA related. I am very passionate about ALWAYS maxing our ROTH IRAs, and this year will be no different. The amount needed to max a ROTH IRA is $5500 for each account, so this will take some diligence to make it happen.  

5) Max my ROTH IRA

No change from above.  There is no way my wife's IRA gets maxed without mine getting maxed as well. Notice I did put hers first in priority though! ;)

6) 810 FICO Score by the End of the Year

In 2017 I aimed for a 800 FICO score by year end, and it's going to be a photo finish to see if I make it. I think we're floating around a 785 right now. We may indeed fall short. But this goal is somewhat tied to my stretch goal below, and is also just a personal desire of mine to have a very high FICO score. We'll see what happens!

7) Contribute $161/mo As an Extra Principle Payment to my Colorado Property

This is a hard goal for me (even to write down, to be honest), as I have always been about maxing my leverage, not giving money back to the bank unless they require it as a down-payment, and always putting any additional capital elsewhere or into a new property...not into one I already have. But the reason for this goal is simply because with an extra $161/mo, I will then be contributing more principle each month towards my loan balance than the amount of interest I pay. And with so many years left on my loan, I think this small amount will almost pay for itself with the total interest saved over the life of the loan. In fact, I'm looking forward to seeing YEARS come off my mortgage end-date simply because of this small additional capital contribution. You'll probably see me lower this number as my interest decreases for 2019.  I will be able to back off my contributions, while still having more principle than interest.  As you can see, I'm only willing to do this SMALL amount extra! :)

8) Contribute $117/mo As an Extra Principle Payment to my Missouri Property 

There isn't much difference between this goal and the one above. I like my CO property much more than my MO one, and I only need an additional $117/month to have more principle than interest applied to this Missouri loan.  So I think this small amount should really help my "snowball" pick up speed in terms of "total earnings" for my real estate portfolio. Again, I'm only willing to do this small amount. :) and I'm still not sure I even believe in this strategy, but I am going to give it a try.  I'll call it "forced additional savings" for 2018, if nothing else.

9) Contribute 1% per Month in my TSP

This was a goal I had in 2017 that I did not achieve. A TSP is essentially a 401K equivalent for federal employees. Since I do not have much money left over after maxing my two ROTH IRAs and paying down debt, I haven't really ever tried maxing out my TSP (at $18,000 per year). I know I am at least a few years out before I have enough max my ROTHs and my TSP, so this year we are starting slowly again with only 1% of my monthly salary contributed.

10) $25/mo Saved in my Kids' 529 College Savings Plan

I'm still slightly behind where I need to be in terms of college savings, but frankly, I wasn't given any college funds from my parents, and so this is last on my list of financial priorities. In fact, a quick college-savings story for you: shortly after my wife and I were married, she received an inheritance of $10,000 from her grandmother. Since her grandmother was such an incredible woman who cared very much about education, we decided to honor her and use the entire $10,000 gift to start a 529 college savings account for our first son, mostly as a small way to continue her legacy. Since that original $10K contribution, the account has now grown to $20,000 after about 7 years. So I do not think we are extremely far off from where I would like to be with our kids college savings...but with two kids and maybe more on the way, we will need much more than that to fund their college experiences. But still, this is not a major priority yet with each of our kids under 4yrs old, which puts this as goal number 10 out of 10.

So there you have it. The top 10 financial pursuits I will strive for and will use to monitor our progress and benchmark our successes.

So that's it. One of my favorite things is getting feedback and learning from other bloggers' financial goals. Reading all of your 'Goals' posts is my favorite! So do you have any recommendations? I would greatly appreciate any thoughts you have!
Thanks for reading,
Passive Income Dude

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Sorry for the delay! - It is time again for my Monthly Progress Review, and again I am happy to report a very large YoY growth of 108% from last October. Despite the large number, it was a rather boring month, of zero action or excitement or purchases or anything new...just letting the system work. Still, I'm happy to receive the amount my portfolio generated!

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers October 2017.  I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together!

General Thoughts on This Month: A rather boring month as I said of simply letting the system execute what it's been set up to do.  This month was carried almost exclusively by the real estate portion of my portfolio, which I am fine with because that is where my focus has been the last few years. It may be time to start focusing back on the equities side soon.  The market just seems pricey and the bull-market is now the second oldest in history.  When will we see a 20% drop?

All of that said, Read More to see how I earned $980.25 this month in passive income,

Dividends Received


*All dividends are always reinvested. 

Rental Income Received
As mentioned last month, I now have four active rental properties, my Missouri Rental my Colorado Rental, and my two North Carolina rentals: North Carolina 1 and North Carolina 2.  Listed below is the cash flow that each of these properties provided this month:



In summary, with dividends and rental cash flow combined, Total Passive Income Received: $980.25

Purchases
Still no purchases this month, as I have a significant amount of debt (around $14,000) currently, which is quite a lot. 

Thankfully all of my interest bearing debt has now been eliminated.  The $14,000 mentioned above is on a credit card at 0% until June of 2018.  I love this strategy of delaying payment!

Thoughts on This Month
This was a good month for Passive Income.  Compared to last year's October total in 2016 of $470, my YoY growth for this month was 108.6%.  This puts my annual YoY average through the first 10 months of this year at 60.8% per month. 

With the addition of this month's income to my Progress Tab I now have earned $8,192 in total this year in passive income.  Unfortunately this month actually represents a small 'loss' in the ground I need to make up in order to reach my passive income goal. I still think it is going to be a photo finish actually as to whether or not I achieve my primary Passive Income Goal.  But in summary I'm counting on a MASSIVE DECEMBER if I'm going to make it!

Thanks for reading, and I always appreciate any comments,

Passive Income Dude 
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Another month has passed and it is time again for my monthly Income/Expenses report. 

In these reports I highlight what income I made during the month, what sources all of the income came from, and where it all went on the 'expenses'-side; showing all purchases by category...every dollar! Ideally, when it all is calculated I achieve a high savings rate, and then I post that to my Savings Rate tab for month-by-month tracking of progress.

General thoughts on this month: This was another 'standard' month for us. Nothing exciting, nothing extraordinary, but simply discipline and sticking to the budget we've created. Unfortunately we are MASSIVELY in debt at the moment thanks to the purchase of our 4th rental property, so I CANNOT WAIT to have all of that paid off.  Here are the numbers:


General Thoughts on INCOME:
1) Very little change to Income this month. And we really haven't pursued any new sources for growth over the last few months and I do not anticipate any major increases (or decreases) in the foreseeable future, so I imagine income will continue to hum along at close to the above amount.

General Thoughts on EXPENSES:
1) Expenses were again pretty reasonable across the board. I had to buy new running shoes, new soccer cleats, and just a few smaller items that couldn't really be avoided, but overall we kept the budget mostly in check.  You'll notice our two 'catch all' categories (Shopping and Everything Else) really were not too high.

We thankfully hit close to 40% for our savings rate. This month's rate was able to raise our annual average for 2017 to above our goal # 5 amount of 28%/month. I've updated my Savings tab that shows every month since Passive Income Dude was launched as well.  

Remember - it doesn't matter how much you make; it is how much you keep!

Thanks for reading!
Dan
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I thought I would do a quick post about my favorite metric (or at least what I consider to be the most important one), and that is Year-Over-Year growth, or oftentimes shortened to YoY.

I believe YoY growth is extremely critical in measuring one's progress and in making real strides towards financial independence for a few reasons. First, it helps you clearly see the direction you are moving, which is always nice and good to know (which may be obvious to us bloggers, but MANY people do not have a clear understanding of which way they are moving). But more importantly: it helps you clearly see the pace at which you are moving! 

Knowing your "pace" is extremely important in your journey toward FI, and oftentimes we overlook measuring our pace for more exciting metrics like "total dividends earned" or "number of companies that payed out" or "total passive income."  But consider the following example: if your YoY growth turns out to be only 3%, then in reality your "growth" is probably nothing more than inflation!  Who cares about the dividends or number of payers or income! In 'real' dollars, your growth is actually probably zero! Or consider a growth of 5% with all equities (or all dividend paying stocks).  Is that good?? Well, I would say no - you're taking on significantly too much risk to only achieve the 5% growth that you did.  You should be getting much more than that!

With all of that said as an introduction, I have been very thankful and excited for the growth that we've achieved this year.  In September, I anticipate we may have YoY growth for the month at approximately ~275% from last year!  We will see, but I'm excited for the final numbers to come in over the next few weeks, as I'm hoping for monstrous growth. If it is close to my estimate, we'll just assume a conservative 225% here, below is what my YoY growth for 2017 would be:   



Overall, I'm very excited to achieve that level of growth.  A little too sporadic for my particular tastes (but real estate will do that sometimes!), and February and May were clearly disappointing - thanks to some larger real estate expenses and a few portfolio moves, but this year I've written a lot about how it would be the second half of the year where things really kicked in to the next gear for my plan. And that is actually what we're seeing in the above chart.  Take a look again: from June onwards my growth has been a monstrous 113% average per month!  

With 9 months of the year completed, seeing a 41.6% per month average growth is great!  We will see how the rest of the year actually turns out - it only takes one tenant to move out to COMPLETELY reverse these numbers :), but I'm hopeful I can finish the year strong with very good numbers.

What do you think? How has your growth been? Do you calculate YoY growth as an important metric of your progress?  What level of growth do you consider acceptable?

Thanks for reading!

Passive Income Dude
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Home purchase #4

This is another property that I believe has great long-term potential.  This deal closed mid-year in 2017, and so it is clearly my latest real estate purchase, with only a few recent months under ownership. As a result, I don't have a ton of data at this point, but what I do have is very encouraging.  

That said, another interesting thing about this property is that this is my first real "real estate investment" as a rental property from day 1; the purchase.  You'll notice with my three other properties that those were homes that my family and I lived in first, for up to at least several years most times, in which we then decided to rent each of them out once the Army moved us to a new location.  With this particular home, however, I took a much different perspective knowing that I would never live in it personally.  Critical change in perspective.

In addition to that, my financing on this property was absolutely INCREDIBLE. What a blessing it was, and I will share more about that below.  The financing alone should make my total returns north of 20% per year.  20% per year! 

And like my other properties, in this page of PassiveIncomeDude, I would like to share as many details as possible of this investment. My goal is to be as transparent as possible and I hope it helps you on your real estate journey as well!  Here we go:


Home Facts
*Purchase Date: Mid 2017
*Purchase Price: ~$259,000
*Layout: ~2300sf, 3 bedrooms, 2.5 bathrooms, two stories
*Finance Details: 30yr fixed, 4.00%
*Amount Financed: ~$194,000, ~25% of purchase price

This property is a great home, in a good housing development and ok area, and I think overall it should generate very nice long-term returns. There is one major concern, however, one that was/is a very big potential problem...with the foundation - some cracking has occurred in the concrete slab.  We did our due diligence on this concern, but we still went ahead and bought the house. Yikes. Only time will tell on this, but the engineers say it is no longer a concern.  We will see.

Anyway, here is a picture of the kitchen to give more perspective on the property. I think it is a very nice home, but like my other properties, not over priced, outdated, or hard to rent.  These factors are key!



 As I hope you'll agree, a very nice, easily rentable floorplan, modern-looking, and clean, home.

Equity Details
*Loan Balance at Start of Rental Period: ~$194,000
*Estimated Home Value at Start of Rental Period: ~$259,000
*Implied Equity: See BELOW!

I wrote more about the way this transaction came about (here), but the quick gist of it is that my friend and I went into this deal as a 50/50 partnership.  The original terms were that he would fund 100% of the downpayment, I'd find the property, and we'd each get 50% of the profits. Awesome. Well, some things changed and I ended up agreeing to fund about 22% of the downpayment, with our original arrangement still being 50/50 profit sharing.  This all came about because I didn't need to cosign with him on another deal, so it sort of made sense for me to adjust this deal for him.  You can read about these details more in my other article mentioned above.

Anyway, though this arrangement is slightly worse than that of my original deal (putting in $0 of my own money and still getting 50% of everything), now, the new deal only requires me putting down around 22% of the original 25% of the downpayment, which really still is awesome.  I'm essentially levered close to 8.8 to 1 on my money, with less than $15,000 total of my own money in the deal.  I know I've said it before, but this is absolutely awesome terms.  Oh how I wish I actually had the $15K and didn't need to borrow it at 6% interest! (I'm quickly trying to pay that off, by the way). But stop and consider these few examples for why this is such great financing: 

1) If the home appreciates only 2%, I'll see a return of almost 18% thanks to leverage!  This doesn't even consider everything else: cash flow, tax benefits, or mortgage paydown.  Simply a little appreciation, and my return is huge.

2) I anticipate my total annual cash flow of around $2500, or $210/mo.  This equates to a cash-on-cash return alone of about 17%. 17%! For dividend stocks, in order to get $210/mo, I would need around $84,000, and with real estate I am getting the same payout with under $15,000.  Amazing! I don't like knocking on dividend stocks (which I love and are my alternative to real estate), but I just cannot get the same leverage with stocks.

Rental Performance
In this section I will detail my monthly cash flow each year, and will also provide a number I call 'Total Earnings,' which is essentially the sum of my monthly cash flow I received plus the sum of the 'mortgage debt' paydown. Here we go:

Current Monthly Cash Flow (my portion): $210.75/mo

So the total cash flow the property is generating is double that number.  If I ever decide to 'buy out' my buddy, I'd receive all of the cash flow/mo; around $420/mo. Awesome.

Current Monthly Mortgage Paydown (my portion): $141/mo

This is only my portion of the principle that is paid down each month by the tenant. I've "outsourced my debt" and each month it is counted as equity for me. Awesome. And the incredible fact of this as well is that this number will grow (on its own) EACH MONTH at a little more than a dollar per month. Yes it is true: as the loan is paid down and more and more of the payment goes towards principle each month instead of interest, the  amount I 'get' to count as equity just increases!

Therefore, with each category, Total Earnings: $350.75/mo

These are actual numbers we've received so far, and it doesn't include any tax benefits, or appreciation, which would typically make them larger.  We thankfully have had a tenant (the seller, believe it or not) in the home since day 1 of the purchase, so thankfully we haven't experienced any vacancy at all, and we're hoping the seller will stay in the home until next summer!  Again, it's not all roses: vacancies and repairs will lower these returns!

But in general, I feel so blessed to add this property to my portfolio.  I'm thinking it will really diversify my short-term liquidity risk, which I NEED! :)  I am asset "rich" and cash "poor"; trust me!

I believe that is it.  Looking forward to updating this page semi-annually or so.

What are your thoughts? I'd love to read your comments below!

Thanks for reading,

Passive Income Dude
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It is time again for my Monthly Progress Review, the second of the year, and what a terrible one it was.  

In each progress review I will list a summary of all dividends I received, the rental income I received, and any purchases I made from that particular month.

This monthly report covers February 2017.  

I hope you enjoy these posts and that we can learn how to grow our passive income streams and build real long-term wealth together! 

The worst part of this month for me is that I have to report -70.6% YoY growth. What a disaster.  

Part of the cause of this terrible YoY growth (or more appropriately I should say, decline) was portfolio based - transitioning one of my major holdings, MMP at 7% of my total portfolio, down to about 2%, and hence I received a much smaller dividend from this holding.  

I transferred these funds from MMP into the Vanguard REIT Index fund (VGSLX), which is a new holding for me that I am excited about, see my updated portfolio here, but I mention it now only to say that it will help my March passive income report's numbers, but that it made February's very small.  The other factor was that HCP, which usually also pays out in February, decided to payout in March this year as well.  Add to that some real estate expenses and you get negative 70% "growth".  But hey, sometimes months like this happen I guess. Ideally March will be much larger. Still, I hate reporting declines of any kind.  

For some good news I was able to make a bunch of purchases this month, which I will detail below, and is really the only silver lining for me during another very low income, expense-filled February 2017.

Read More to see how I earned my lowest total ever since PID was launched, $179 this month in passive income...

Dividends Received
In total, I received dividends from three companies this month.  February is such a light month for me in terms of dividends, and the more I switch to mutual funds the more I tend to only receive larger checks during the 3,6,9, and 12 months.

Anyway, listed below are the details for each:


*HCP will be reported in March

Rental Income Received
I currently have two rental properties, my Missouri Rental and my Colorado Rental.  Listed below is the cash flow they provided this month:


Rental property expenses strike again - this time in my Colorado property, which is relatively unusual and I'm somewhat ok with actually, despite my $4 'cost' for this property this month. These expenses lowered my passive income by several hundred dollars, but were nothing major, and I still lowered my mortgage by over $600 thanks to my tenant paying rent.

Therefore, with dividends and rental income, Total Passive Income Received: $179

Purchases
Finally, something good to share! Purchases really have been, and will continue to be, inconsistent until we're done with our debt, but it feels great to have made these purchases nonetheless this month:

During February 2017 I added $2,875 total to my portfolio, spread across the following six funds:

VTIVX - Vanguard Target Retirement 2045
VFIAX - Vanguard 500 Index
VWELX - Vanguard Wellington
VGSTX - Vanguard Star
VEMAX - Vanguard Emerging Markets Index
VGSLX - Vanguard REIT Index 

Over $2.8k added is great, and I am very thankful.  I still think the future is very bright, but we are not there yet by any means.  Yes, we're still tackling debt aggressively as well.  This particular purchase came only because of one reason - our tax refund (...thank goodness!..and is another benefit of real estate, mortgage interest deduction).

Thoughts on This Month
The passive income this month is woefully lower than the pace that I need to be at in order to achieve my passive income goal. I anticipate that the back half of this year will really be the determining factor as to whether or not I make $13k in passive income.  I'm still straddled with debt, so until the debt is gone the pace of contributions is pretty slow.

That said, I had a YoY growth of -70.6%.  Ouch.

With the addition of this month's income to my Progress Tab I now have earned $556.18 in total this year in passive income.  Wow, I am off pace for my Passive Income Goal But the journey is long and sometimes months like this happen! It's "all about moving forward..."

Thanks for reading, and I always appreciate any comments,

Passive Income Dude 

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