Ok a lot has changed since I last talked about my multiple income streams so its time for an update. Diversifying our income is a key planning tool for the unexpected. If we were solely relying on my income and I lost my job we could be severely affected by a prolonged job loss which all the more a possibility in this economy.
Back in 2006 my income looks liked this:
Note: I originally reported my 2006 income streams with net rental Income. I have updated it here to include total income ignoring expenses as I feel this is a better representation of our income.
Today our income looks roughly like this:
There are a number of changes:
- 1) My wife income - back in 2006 we weren’t married so my wife’s income wasn’t included. Today she is working part time at a pre-school and has started tutoring on the side. Her income is highly variable depending on the number of hours she works each week. She is still just getting established with both activities since we returned from our assignment last last year.
- 2) We have added a 2nd rental property. Our 5-10 yr plan is to pay off the 6.5% 30yr mortgage on this house to reduce our monthly expenses and increase our free cash flow.
- 3) Dividends and interest have increased as our savings and investments have increased.
- 4) My side business has grown. I have developed a number of web sites for myself and various customers including this web site.
- Also see my 2008 Passive Income Review for more of a breakdown of some of this income.
So today’s picture includes more income streams and less reliance on my primary job’s income. However, there is still more work to do grow our other income streams. My wife’s tutoring business is something we are trying to actively grow since we believe its something she can continue to work on while taking care of our baby.
Read more of Current Income Streams Snapshot…
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