Nearly 20 years ago, I became an addict of sorts. The hunger and thirst for more continued to grow, ultimately peaking 4 to 5 years after having my first taste. Despite a slight initial decline, I continued to indulge obtrusively while, ironically, sitting alone in the my room, basement, or study in my parents’ house. Although I certainly had great friends and a very social, active life growing up, I had another side. Friends and family clearly knew of my addiction, as they awed at my ability to own others who dared to challenge me (despite that I often lost and got shamed by those even more addicted than me).
In our November 2017 passive income and portfolio update and via other forums, I received some questions regarding our asset allocation. I hadn’t yet thought of doing a post on this topic, so I hope it doesn’t disappoint.
Some define passive income and portfolio income differently. For simplicity, I’m considering them one and the same – income NOT “earned” via a paycheck from my employer. Here is our passive income breakdown as of month-end. We use Personal Capital to track our net worth, assets vs. liabilities, and cash flow.
In October 2015, I had a client in town for business for a few days. After-work drinks. Dinner. A baseball game. The usual semi-annual work entertainment duties. This also translated to more time away from Mrs. BD at home. And Stella, our miniature dachshund.
On the second day of the client visit, I put Stella’s breakfast in her bowl as I do every morning. Except she didn’t run over as usual. She just laid in bed. She’d done that before, and I didn’t think much of it; she was energetic when we went out for her walk. But then she threw up a clear liquid-ish gunk. Hmm OK.
After posting how we got to averaging $1,000 a month in passive income, we received some comments and messages about our different account types that we leverage. A particular comment from the entertaining, yet even more enlightened, J. Money from, among others, Budgets Are Sexy and Rockstar Finance motivated me to dig into this topic even further: our use of taxable vs. non-taxable accounts as part of our respective financial picture.
Since we began posting our monthly passive income & portfolio updates a few months ago, I received a message congratulating us on reaching the mark of “receiving $1,000 a month in passive income.” Huh? I found this a bit odd.
We certainly don’t see a check or a deposit for $1,000 each month hitting our bank and investment accounts. I replied back to the message and, via some additional discourse, realized it was our monthly average for the prior 13 month year-over-year (YoY) period. Damn.