Every since I read Rich Dad, Poor Dad, I’ve been thinking about passive income and additional revenue streams more and more. Up until that time, I had been content with maxing out my retirement savings and saving money where I could. This weekend, it got me thinking that I need to get a plan together to get myself out of my day job. After Reading Rich Dad, Poor Dad is such an inspiration here.
My first goal will be to become financially independent on passive income alone. That means that my passive income needs to cover my monthly necessary expenses. If I get there, is it time for me to quit my day job? Probably no. I’m going to need more income to grow and cover the fun and other surprise expenses. It will still be a time a time to celebrate though as if I lose my job, I will be able to get by.
I’ve got to answer three natural questions right now: “Where do I stand as I start this goal?”, “How am I going to get to my goal?” and, of course, “What is the goal number?” The goal number is the easiest. My monthly necessary expenses are about $2063.75 a month. I’d like to round that up to $2000, but it sounds better to go to the real number instead of the rounded one. I’m currently making $16.23 a month from my Prosper account, which I’m really trying to crank up. By this time next year, I’m hoping to see my passive income from Prosper to total around $300. That would be excellent as it would cover my groceries and utilities.