As many of you have noticed, I’ve been out of action for a while. There have been a lot of personal and financial changes. 2015 was a big transition year. I’m not technically “starting over” completely. I did lose a lot of my net worth though.
How did this happen you might ask? One word: DIVORCE. It’s a nasty word but that’s the main reason for the hiatus for the better part of last year. To be honest, it hit me more than I ever thought it would. Over the years, I have seen the majority of my friends hiring someone like this denver divorce lawyer because they had seen their marriage break down, and I for one never thought it would happen to me. I didn’t know how to react, my thoughts weren’t my own. It must be hard and given that it is an understandably sad situation, it would be better if they went through a divorce attorney consultation. I guess I was just blessed that I had people to talk to who knew exactly what I was going through and feeling, so that made me feel a bit better, but it didn’t fill the big hole that had now been left in my heart.
I’m sorry for rambling on like this. But I will feel a lot better if I tell you what has been going on in my life because there are thousands more people like me who are going through, or have gone through a similar thing. So, for some of you that may have hit close to home, especially if you’re thinking about getting a divorce. That is why you’ll want to look into law firms, like peters and may and many more family law practices are there to help you in a time of crisis. Trust me, you will feel better for it.
What’s more important is what I’m focusing on right now; that’s growing my passive income stream.
This passive income stream is currently a little over $1000/month and has three components:
1.) Individual Dividend Paying Stocks
My portfolio has taken a bit of a hit but I plan to be as diligent as every and to consistently invest into dividend growth stocks as I’ve always done. I’ll also be posting my new trades again as usual on a weekly basis at least. I’m currently contributing $900/week to my Sharebuilder account to build it back up to where it was. My portfolio basically got set back for about two years. After the 75% dividend cut from KMI, I’m currently at a 12-month forward dividend income of $8468 or $705/month. That’s not too bad to be starting over with.
2.) Real Estate
I’ve sold off a property and lost one in the divorce so I just have one rental currently that’s earning $274/month in profits. However, I recently purchased a historical building that has a bar on the first floor and a living area upstairs. It was built in the 1800’s and is already fully renovated. This is the building I’ll be opening up a bar out of. So a lot of my extra cash has gone here. I’m hoping to have it fully running sometime in March and I’ll be posting updates. This will be a new source of income that I’m looking forward to. Luckily this was not part of the divorce, otherwise, that would have been another thing to contend with. If one of us breaks the divorce decree that can cause further legal issues, and I certainly do not want that. If you are going through something similar, you may want to check out a Sisemore Law Firm like thetxattorneys.com so you can understand what I’m saying in a clearer legal way.
3.) P2P Lending (I recently started a Lending Club account)
I love the concept; I have a small account but am adding $250/week currently and I’m seeing over 16% returns so far. I’m sure this number will come down as there are some defaults on the account. I’m mainly focusing on higher interest loans for now. Any tips would be helpful. I also want to check out Prosper but not sure if they are in Texas yet. The reason I hadn’t invested already in Lending Club is because they weren’t in Texas yet and I didn’t like buying notes on the second-hand market.
So What’s next you may ask?
What I’ve been working on is getting back on track financially. It’s been a tough year for me but I’m finally anxious to start writing on my blog and letting you guys know what is going on again on a regular basis. My portfolio weights are all out of whack but I’m working on that now. I’m also anticipating a large tax bill and will keep purchases a little light the first half of the year but hope to increase them the second half. I still have a lot of time to buy and diversify.
Lowering expenses, earning more income and building more passive income streams are what I’m working towards. I will be eating out less and cooking at home more. I’ve also stopped going to Starbucks every single day. Every few dollars count!
I’m excited for a brand new start and will be sharing my journey with you guys. I appreciate anyone that’s been following along. I’ve not lost commitment; only a little money. This can be replaced with a little bit of time, savings and consistent investing.
I’m fully dedicated to an early financial independence and hope to see you all there some day!
I hope everyone has a Happy New Year!