Passive Income Report October 2016

Every month I’ll post my progress and journey towards financial independence and early retirement (FIRE) using passive income. As Will astutely points out, early retirement is a very abstract concept and can mean different things for different people.

The crucial concept to bear in mind is what you’re retiring to and not what you’re retiring from. Retirement doesn’t necessarily mean sitting in front of the small screen eating ice-cream every day, unless of course, that’s your thing. The options are literally endless. Perhaps you could work 50% of the time, spend 25% extra with your family and spend the other 25% on charitable causes once you’ve FIRED.

Passive income is the holy grail of income and can give you the life you’ve always wanted but contrary to popular belief, it’s a lot of hard work!

Passive Income Report October 2016

My only source of passive income this month is from a low interest current account. This interest is, frustratingly, set to drop even lower in November. My after-tax passive income has dropped this month due to my conscious decision to divert some of the capital into other ventures.

Current account interest – £34.93

One thing to tell yourself on your journey to passive income success is to never lose hope. Achieving a decent passive income stream takes a long time and if it was easy, everyone could do it. I’m really looking forward to December as it’ll be the first payment I receive from this new and more risky investment.

I’m a firm believer that every time life hands you a piece of good fortune, you should share it with other people. £6/month is an insignificant amount of money but I hope that as my passive income stream grows I can contribute more to the charities close to my heart.

Charity contributions – £6.25

P.S. I learned everything I know about finance from this book, this book and that oneamongst many others. For a more extensive list, don’t hesitate to drop me a line at rory@ukdoctoronfire.com. If you prefer learning through listening use this link to earn a free audiobook of your choice by signing up to their 30-day free trial. Simply cancel with the click of a button if you decide later on that the service isn’t for you, no questions asked.