Financial Freedom Report May 2020

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Here is May 2020 report on my path to financial freedom.  This is part of an ongoing journal about exactly HOW I am achieving financial freedom in less than 10 years.

Side Hustle Big Events

  • Collected first rent for 2nd SFH rental property
  • Continued side contract consulting work
  • Started advertising affiliate / side hustle websites

Real Estate Hustle

Rental Properties (2)

  • Gross Revenue  = $1718.26 rents + $500 adjustment from PM + $1000 in other income from the business LLC
  • Expenses = $137.46 Property Management fees + $639.06 mortgage on property #1
  • Net Revenue = $2441.74

Health Business Side Hustle

  • Gross Revenue = $1986.49 (Extra $1000 from business LLC)
  • Expenses = $160.08
  • Net Revenue = $1826.41

 

Consulting Business

  • Gross Revenue = $1930.78
  • Expenses = $818.95
  • Net Revenue = $1111.83

Total Financial Freedom Number for May 2020 = +$5379.98

Extra income moves:

Aside from all of the above, we made other very non-traditional income moves.

#1) Part of the financial vision I have relies on 4 Core principles of investing.  Increasing both control and returns, and decreasing risk and eliminating or greatly reducing taxes.  To make a long story short, Congress passed into law a very unique opportunity as part of the Cares Act.  Essentially, it allows for a penalty free withdraw of up to $100k from a 401k in 2020, and for you to pay the taxes for that over the course of the next 3 years.  Since I’m not a big fan of 401ks (little control and it only defers taxes to a later date), I took the opportunity and withdrew my 401k from current employer.  I can write more about this in the future if you’d like.

#2) By now, most of know about the Stimulus check from Congress.  We did receive this and are pushing this into our “Vault” (essentially a non-traditional place to store your emergency funds) in order to make up for some emergency expenses that we incurred in 2019.

You might ask, why no mortgage on the 2nd rental property?  That payment isn’t due until June 1st, so it wasn’t counted here.

Goal of side hustle = $7300/month passive income (outside of regular income) through our rental properties.  $10,000 in active income from other side hustles.

So we were in the positive

Goals for next month:

  • Collect on rent for both properties and push income to Vault to save for property #3
  • Continue consulting side business
  • Generate 5 extra sales in health business

What do you think?  How about your side hustles and quest for financial freedom?