My starting point for the challenge

wecandoitAs promised, I will do some digging in the numbers and go over the assets and liabilities I currently have. I have been tracking my finances since I was 10 years old – first with pen and notebook, then with old Macintosh computer and since 2002 I have been using Excel.

I have tracked my NAV (net asset value) monthly since June 2005 when my NAV was 384,335 Estonian kroons or 24,564.43 euros. I started calculating monthly passive cashflow since February 2007 when my passive cashflow was 5,552 kroons or 355 euros. So you could say that was my starting point.

As of now, I have made some pretty nice progress. I currently have a bit more than 6,800 euros coming in every month in passive income. But the tricky part is that quite a bit of that cashflow is interest from risky short-term notes, so when they get paid back, I will need to reinvest money with high interest (18+%) again or my passive income will drop. On the other hand, I have not taken into account majority of my real estate investments as those are held in different company and currently all income is 100% re-invested.

So as of June 2014 my passive income portfolio looks like this:

  • 110 eur monthly rent from real estate
  • 2,258 eur monthly dividend from dividend stocks
  • 5,786 eur monthly interest from notes and loans given out

So my total monthly positive passive cashflow is 8,154 euros.

As far as liabilities go, my monthly passive cash outflow is:

  • 660 eur monthly interest on personal loans
  • 628 eur monthly interest on company loans

So my total monthly negative cashflow is 1,288 euros.

That makes my current monthly cashflow 6,866 euros. So good news is that I am more than half done with my 10,000 euros goal. But like I said, bad news is that about half of interest income is short term and needs to be replaced soon.

All in all, I have progressed nicely (in as late as October 2012, my total cashflow was just a bit over 3000 euros) but still long way ahead.

 

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