You might recall that May wasn't a particularly good month for us in the "make money passively" space, though we continued to rock out on any number of other important areas financially.
Well, I'm happy to report that June was much better, though, as always, there is more to the picture than might first meet they eye.
I've also put together a few new and different types of charts to illustrate a few important points.
Passive income increased this month from last, for a total of $475.45. This comes close to meeting my 2013 goal for an average amount of $500 per month.
Here's a historical view across the life of the LTNE website. Note that we've now made a total of $3,719.81 in passive income since we began LTNE.
But, just how "passive" is this income? As I noted last month when I was forced by demands to back off blogging, affiliate and other income dropped precipitously. To that end, I've begun to keep track of the amount of time I work online each month, and then generate an "hourly" income based upon that number. Since I worked online a total of 11 hours this month, my effective hourly income was $43.22 in June:
I began to see affiliate income again reemerge this month. Take a look at this previous post to see my strategy as I had watched one of my excellent sources of affiliate income begin to dry up. A few articles and I'm now beginning to generate some sales again!
Here is the percentage breakdown of our passive income sources.
Our cash rewards cards are humming now that we have those up and running, generating a respectable $84.72 in absolutely passive income this month. Listen: if you use a credit card at all and aren't using a rewards card (we used to use a debit card which gained us nothing!), then you are probably not thinking clearly. We use our Discover It and USAA cash rewards cards each month for all of our normal purchases and then pay them off in full, avoiding any interest charges. And doing so is yielding nearly $100 in free income each month. I'll take it.
At the end of this month, I also moved $10,000 from savings and invested that amount into Vanguard 500 Index Fund Admiral Shares (Ticker: VFIAX) in an effort to better grow our money. More on this later, but here is a link to Vanguard's information on their 500 Index Fund Admiral Shares.
Our net worth continued to increase and we are ahead of schedule to meet our 2013 goal of $25,000. Again, this number also considers that we are massively upside down on our mortgage due to the housing bubble, so a positive net worth is a real accomplishment for us!
Visitors to the site increased from last month, but numbers are still down from previous highs:
To be clear, here is our overall strategy right now:
1) Increase our active incomes where we can. Jen's work ethic has paid off with a promotion from an hourly position to a salaried one at her job and we are hitting record highs with our active incomes.
2) Find passive income everywhere that we can, including affiliate income, advertising income, interest from peer-to-peer lending, and the use of cash rewards credit cards (paid in full each month).
3) Grow our assets by reinvesting peer-to-peer loan interest into new loans, as well as investing $1,000 monthly into index funds through Vanguard.
4) Continue to pay the mortgage off on our rental home aggressively, with normal mortgage payments, as well as $1,000 monthly principal payments.
5) Get our emergency fund back up to $10,000, since I depleted it for the Vanguard Admiral Shares.
6) Continue to maintain a zero balance on all credit cards. Continue to spend less on all things and live frugally!
7) Budget and save for our upcoming (and much needed) vacation!
8) Research and write each weekday for my PhD dissertation.
9) Train like hell for our upcoming triathlon!
10) Live life fully!
Thanks for continuing to visit. I hope something good comes out of each visit-- perhaps a little bit of knowledge, entertainment, or inspiration!
As a recap, here are the links to items or services that I discussed in this piece.
Lending Club (affiliate link)
Prosper (affiliate link)
Discover It Rewards Card (affiliate link)
USAA Rewards Cards (affiliate link)