Wednesday, August 5, 2015

Goal Update: End Of July 2015

At the end of each month, I post an update of my goals, including a brief discussion of any notable events that might have occurred during the month. The latest month's figures can always be found under the Featured menu in the menu bar at the top of the blog.

Last updated: End of July, 2015
Current value: $15,754
Change from last month: +$1,808
Percent of Goal:  14.49%

Note that the funds in this account are invested in stock, so there will be fluctuations in value that are outside my control. I never withdraw money from this account, so any dips are purely due to stock price changes.

Events Of Note Last Month:

After five months of hovering just under the $14,000 threshold, I finally broke through in July – and broke through big time. My account value blew through the $14,000 tier and crossed over $15,000! Nice! I added $367 from my online course sales, plus my regular savings deposits, but the big boost came from Realty Income stock finally going up. I fully expect the stock to pull back a little next month, so I don't think I'll be at this valuation for long.

As I was writing this, it dawned on me that I have not received any ebook royalties in a while. Not that they have ever been a huge source of income (I don’t think I’ve ever received more than $10 in a month), but I took a look to see what was going on. Amazon pays royalties on ebooks 60 days in arrears. I didn’t sell any books in April or May, so that explains the lack of payments. I did sell 3 copies in June, so I should get a few bucks at the end of August or beginning of September.

I released a new online video course in July, so hopefully that will drive some additional income. If anyone is interested in Understanding Statistics in SQL Server, use coupon code BLOG15OFF for a 15% discount or use this link.

Next month will have a lower contribution to this fund than normal as I’ve decided to take the monthly income from my online courses and send it all to the tax man. As I found out last March, my online training income is taxed as self-employment income, so rather than get hit with a big tax bill next April, I’m going to take the earnings from one month and send it all in as an estimated tax payment. The figures aren't final yet, but it’s looking like my sales / tax payment will be on the order of $325 or so.

But, as I mentioned before, the good news is I broke the $15,000 threshold! That means I unlocked another achievement!

My original plan was to invest in stock until I reach $20,000 and then move that money from stock into a hard money loan, where I can earn 9% interest. I'm approaching that milestone and am starting to look in that direction. I might have to modify my plan slightly. My real estate investing partner whom I do my hard money lending with currently doesn't have many opportunities - our biggest borrower has taken a year or so break and we have fewer deals to fund now. Also, the low interest rate environment means we're only getting 8% on our money instead of 9%. (Back when I started, we were getting 12%!) Hopefully, that will change by the time I hit $20,000.


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