Like everything in life, with experience comes quality. It is much easier to set realistic financial goals this year than it was three years ago, when we started our financial journey. Before setting new goals, here is review of our 2017 financial goals.
In 2017:
We received $5,495 in dividends, missing our goal by $505.
Income from rental property was $3,331: again, we missed the goal of $4,800.
We received an unplanned $265 from investing in Lending Loop and $970.98 from investment in private mortgage.
We managed to meet our goal of annual savings despite our marvelous, expensive vacation. Our calculations do not include an used car we bought this year in preparation for our new baby we are expecting in early 2018.
In our 2017 goals, we introduced a new metric, distance to financial freedom, and hit our goal of 10 percent.
Towards 2018:
Dividends $,7000:
It is easy to see now that we are going to receive dividends of more than $6,000 during 2018. We will challenge this goal through a stretch goal of $7,000 in dividends.
Real estate $4,100:
Profit from renting our first apartment should be around $3,500. Because our second apartment completion date is around April, we expect to receive additional profit from renting it out for about six months in 2018. Profits are expected to be around $600, so our expected total profit from real estate for 2018 is $4,100.
Private mortgage $5,906:
Our expectation for profit from our current investments in private mortgage is $4,306. We bought our second apartment in 2015, and its construction completion date is somewhere in the middle of 2018. Thanks to Vancouver’s soaring real estate prices we will be able to cash out the difference in price and reinvest it. If the condo completion date does not change, a realistic return on this addition to our private mortgage investment should be around $1,600. All together, we plan receiving $5,906 from this investment.
Lending Loop $1,200:
This is our smallest income stream because its higher risk than our other investments. Without investing more in Lending Loop, we expect to profit $1,068 from it. Although it is a risky investment, its return on investment is more than 10 percent, and we will put more money in it to work for us. Our total expectation from this investment in 2018 is $1,200.
Another income stream:
This year, we also want to find another stream of passive income. It may come from blogging or any other unutilized passive income source. Having many income streams provides not only diversification of our investments but also new opportunities and more chances to accelerate our passive income. An income stream from investing in private mortgages appeared on our list because of our previous investment in real estate, which has further developed. We are going to receive $5,906 from this income stream in 2018 without putting any of our hard-earned money into it.
Distance to financial freedom
Considering that one of us is going on maternity leave, we would like to see a distance to financial freedom above 15 percent in 2018.
We anticipate receiving $18,206 in passive income in 2018, which is amazing, keep going! Soon our passive income will overtake the annual minimum wage in BC.
Have you already set up your financial goals? We did it for the first time three years ago, and we are very glad to see where it has taken us today.
Nice work. Like seeing all the different income streams. Lending loop seems to have done really well for ya.
Looks like a great goal for ya.
All the best
Cheers
Rob thank you for stopping by. Yeah, it took me several years to go from trying to buy low and sell high to invest in companies that pay dividends and looking for more income streams for diversification.