As I mentioned in my wealth accumulation plan, I crave for passive income. Its definition tells the reason why I love passive income so much.
According to Wikipedia, Passive income is an income received on a regular basis, with little effort required to maintain it. What I like about passive income is that it provides me the flexibility that I am dying for. With passive income, I am no longer constrained by the clock-in/clock-out or bound to the day work from 9 to 5. I can really enjoy my life by pursuing the things that I love most, spend more time with my kids and enjoy the little moments along the road of their growing up, and contribute more time to my church.
Recently my desire for passive income becomes much stronger. My son will go to kindergarten this August. Since both my husband and I work full time, we have to apply for after-school program for him. Frankly speaking, I don’t like the after-school program idea because in the program the kids from all grades gather in one big room and spend the whole afternoon together. It is good for the kids to interact with each other and make friends; however, I do hope that I have the afternoon time to accompany my son and help him to develop his hobbies.
Thus, I am yearning for passive income, because it offers the flexibility to cope with my kids’ needs, and at the same time, it also provides an income flow to meet our daily expenses and maintain our family living standard even after I work part time or quit my job.
My goal is to cultivate and maintain a passive income flow, then even after I quit my day job, we can still at least keep the same living standard. In my plan, I’ll get my passive income from three channels — dividend income and capital gain, rental income, and some online income as a natural flow along the way. I won’t specifically track and trace our monthly expenses, but I’ll use my day job salary as a benchmark. Here is my plan:-
When my monthly passive income stabilizes at $1500, I’ll work part time, so I have the afternoons to spend with my kids; I plan to achieve this goal within 3 years.
When my monthly passive income stabilizes at $3000, I’ll quit my day job. I plan to achieve this goal within 5 years.
With these goals in mind, I feel more motivated to keep on track. In this blog, I’ll document my progress of pursuing passive income through dividend income and capital gain.
