Objectives of this blog:
1) Plan for my retirement.
2) Journal my way to financial freedom for my family and me in Singapore.
3) Share my financial knowledge and wealth management in an easy to understand way.
My current aim is to generate a passive income of $3000.
Sunday, December 27, 2009
My Income Projection Chart (with and without passive incomes)
I hope that this post will motivate you to do more in your life so as to achieve financial freedom in the shortest possible time.
I have managed to plot a chart for my total income projection. As it is confidential, I have to remove the actual value of my total income and have shifted the chart down so that my starting pay is on the horizontal axis. In year 7 of my working life, I have added my first passive income. In year 9, I have a total of 3 passive incomes.
The blue dotted line is the projected income for my main job. You can see from the chart that the growth of my main income is very slow.
The dotted green line is the projected total income for my main job plus my passive incomes. Based on the chart, the value of the green dotted line in year 10 has the same value on the blue dotted line in year 20. This means that I am going to achieve the same amount of income next year which is equivalent to what I might be achieving in 11 years time by solely depending on my main income source.
I only include my three passive incomes when plotting the dotted green line in the chart. If I can successfully build up my fourth and fifth passive incomes, the growth of my total income will speed up more. I have estimated that I will need 1 to 2 years to build up my fourth passive income. Thought it can be hard work but the result that I am achieving is definitively worth to put the effort in.
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4 comments:
i dun understand. the y-axis is
total income received to date
OR
total income received per month?
Your x-axis is year1,2,3,4,5...
Mmmm, it is start at which age? or.. ?
i dun really understand the chart..
Hi ZhuKoLiang,
Y-Total amount of income
X-Number of working years
Regards
Freedom Achiever
Hi Freedom Achiever
could you provide a breakdown of investments that give your current total monthly passive income of $1,500?
Seems like you would need to invest about $300,000 to generate that kind of passive income.
Thanks.
Hi bluex,
I have other passive income sources like rental, not just share investment.
Regards
Freedom Achiever
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