I am now tracking my passive income versus my expenses each month, towards financial independence. This only includes income in taxable investment accounts (not in my 401(k) or in my Roth IRA), rounded to the nearest dollar. I also track my W-2 income to compare to the passive income and my expenses. Watching that income / expenses percentage get higher is really fun as well :)
Since the amounts are so low right now, I’m going to do this update only once per quarter.
- Interest income = the sum of all interest earned in my savings accounts, rounded to the nearest $5-10
- Dividend income = the sum of all dividends posted in my taxable investment accounts, rounded to the nearest $5-10
- Expenses are rounded to the nearest $100
|Credit card dividends||$40||$10||$5||$55||$65||$40|
|Total passive income||$90||$65||$85||$240||$675||$555|
|Passive income / expenses||2.6%||1.1%||1.6%||1.6%||1.7%||1.2%|
I didn’t have any taxable investments in 2010. I had a very small amount in 2011. I have more in 2012 and my savings accounts have higher balances, so I should see much more in passive income this year. My goal for passive income (i.e. interest and dividends) for the 2012 year is $1,000, which would cover 2.3% of my estimated expenses for the year.
Readers, do you track your non-wage income? If so, how are you doing? Do you have a goal for the year so far?