Two and a half years ago, I created an article called Creating Alternative Income Milestones, and I’m happy to say that I’ve made it to level 1 already! I’m about one year ahead of where I thought that I would be in my progress!
In the article Creating Alternative Income Milestone, I mentioned that I wanted to speed up the alternative Income Money stream, but I didn’t have any plans or really any ideas how to accomplish this feat without working another full-time job and saving the money like a fiend! Well a lot has changed in two short years! While my levels and goals are still the same, instead of taking thirty years to develop the money stream of dividends and other investment that would total $25,000, I now want to accomplish this feat in less than 10 years.
Obviously, developing a yearly money stream in 10 years is a far cry from when I thought it would take about thirty years… so what has changed?
My Investment asset classes!
Instead of sticking strictly to dividends from stocks and interest from bonds, I’m planning on trying to develop an additional money stream from a few choice rental estate investment properties. I believe that if I could buy 2 or 3 multifamily units and collect the cash flow from those units, I could beat the thirty years that it would take for me to get to level 5 by just investing in dividends and bonds!
Just as a reference point, below is my Alternative Income (Passive Income) Milestones:
| Levels | Amount Milestones | ||
| 1 | $5,000 | ||
| 2 | $10,000 | ||
| 3 | $15,000 | ||
| 4 | $20,000 | ||
| 5 | $25,000 | ||
While I’m a long way from $25,000 or more in passive (alternative) income, at least I feel it’s a doable option now that I have more detailed plans!
Best
MR
That’s great! I was just thinking I’d like to plan on making an additional $10,000 annually and can’t figure out how, without taking on another full time job!
It’s definitely a work in process! Getting a rental property that provided a cash flow would be very excellent. Right now my Level 1 number is based on the dividend stream that I currently have. Blogging is a great way to go too, I don’t include my blogging income as part of my alternative income stream (although I probably should huh… it’s just that it’s not predictable enough).
I don’t really consider blogging passive income as I spent multiple hours on it a week and if I stopped updating my blog the income would slow down or stop. Good luck with your goals though and I am glad they seem to be coming faster than expected.
Yeah, I don’t consider blogging passive income either. The figures above are really just dividends and interest. In the future, I plan to incorporate rental “cash flow” also…
Congratulation! Hope you get to the next level soon. 🙂
Rentals take a while to generate income, but once it starts rolling it should be very nice.
Thanks! It’s a baby step, but those first few steps are the hardest (or so it has been in my case).
Just be VERY VERY careful about the location. Rentals can be a nightmare if you can’t fill them with quality tenants and quality tenants want to live in choice locations which will cost more to buy.
If you are to learn anything from my experience, it’s better to pay more upfront for a good location than strictly looking at ROI. ROI can look pretty good on cheap properties in the slummy parts of town but they are such headaches with high turnover rates and lots of damage to your property.
Good Luck. I think about rentals again from time to time as well.
Hmmm, that sounds like very good advice. I’ve been looking at the cheaper part of town, but I think what you say makes sense. I think I will re-evaluate my selection choices.
WoW! Am I correct – you achieved Lvl1 in just over 2 years instead of 9.
This is an eye popping experience. Amazing. Congrads!
Thanks, yeah the 9 years was based on a low saving rate model without any side income estimated in. It was a good model based on the estimates at the time, but I’ve been a lot busier with side income. It’s definitely acting as an accelerator in the savings process.