Wednesday, March 3, 2010

How long does it take me to reach a passive income of $3000? (Updated on 3 Mar 10)

On 9 Nov, I have a post titled "How long does it take me to reach a passive income of $3000?". Based on the last calculation, I will need to take 14 years in order to achieve it.

Currently my passive income has managed to reach about $1684. I have made some assumption to calculate the number of years needed to achieve my target of $3000. I shall state the assumptions in this post again:

Assumption 1: I reinvest my passive income and I have a saving of $20000 for my investment yearly.
Assumption 2: My reinvestment gives me 5% return in term of dividends
Assumption 3: Dividends from my investment is constant

It is calculated that I need another 7 years to achieve a passive income of $3000. The main reason why I am able to reduce the number of years from 14 to 7 years is because I have managed to have other sources of passive income. If you see my cash flow framework, there are two methods to achieve my aims faster. Firstly, I must work harder to increase my income from my job. Secondly is to find other income sources.

2 comments:

pink said...

haha~ funny! thank you for your share~ ........................................

Freedom Achiever said...

Hi pink,

I only put plan that is achievable to me. Do you have your own plan?

Regards
Freedom Achiever

Have you started your journey towards financial freedom?

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