After our summer break in Europe, we quickly got back to the good ol’ routine for the rest of June. This long holiday with Mrs. CED and the kids gave me a taste of life without bonded labour, ahem I mean a 9-5 job. You know what I really don’t like – the Sunday scaries. In fact on a regular weekend, the feeling sometimes sets in as early as Saturday evening.
But I digress. This holiday helped us to really define the why of our FI journey. We cannot live the life we want for our family as long as I have to work. Yes we took the first step a long time ago by become a single-earner family. This was a conscious decision to forego extra income in favour of being more involved in the upbringing of our kids. But when all’s said and done, we need to remove the need for me to work. That’s what our FI strategy will help us do.
Note: All figures are in USD unless noted otherwise. I do not include unrealised or realised returns from invested assets such as dividends in this report. Passive investing is not a side hustle! None of the content on this website is financial advice, and I am not a financial advisor. Please see the disclaimer for more information.Some of the external links in this blog post may be affiliate links, I do try to keep them to a minimum though. The links help keep the site ad-free for you and hopefully one day will figure in my side hustle income reports! Please see our earnings disclosure for more information.
Side Hustle Income in June 2019
Rental property after tax and expenses: $250
Credit Card cashback: $28
Interest on emergency fund: $24
Our strategy for achieving FI is Financial Independence through Geo-Arbitrage (GeoFI). If GeoFI sounds ridiculous, sorry you should have heard my other acronyms. We moved to a High Cost of Living (HCOL) area to earn and invest more and rapidly increase our net worth. GeoFI also gives us the option to lower our FI target to relocate to a LCOL final destination if we decide to do so. Our invested assets will then generate enough income to cover our expenses.
We are already Location Independent through Side-Hustling. Our side hustles can reliably and consistently fully cover our living expenses. So we have already achieved LISH. But we are not comfortable with giving up my primary income and start relying solely on side-hustle income.
Net income from the 4 niche websites came to $3,149 for June. One of our better months and the reason is a massive promotion we ran on our main niche site with a sponsor the previous month.
All my niche sites are monetized mainly through the Amazon Associates affiliate programme. If you would like to start a side-hustle blog, here’s my proven step-by-step method of doing it right.
In last month’s income report, I mentioned thinking of selling my main niche website. I still haven’t made up my mind. The main reason I am hesitating is the replacement value of the website. What am I talking about? Assume my main niche site making $2000 profit a month. That’s $24,000 a year. To generate that much money in passive income, assuming a 4% withdrawal rate I would need $600,000 in invested assets.
Yeah, that’s a lot of money. But if I were to sell that website, I would get at most $60,000 for it (30x monthly profits give or take). So what is worth only $60,000 to somebody else is worth $600,000 to me. You know where I am going with this? I don’t see a convincing reason to sell.
There’s another big milestone this month – we broke $100k in lifetime side hustle income! Most of that has come from the Amazon Associates programme promoting physical products. I am so glad I started side-hustling and that I stuck to it even when it made very little money.
$250 landed in our bank account this month instead of the usual $650. This is net of the 10% management fee I am paying my property manager, but what happened? After 6 months, we were finally hit with our first repair bill. I guess I got a bit complacent and started thinking nothing could go wrong. Hopefully there won’t be another repair bill the rest of this year.
Credit Card Cashback
Our Standard Chartered Unlimited Cashback Card gives us an uncapped 1.5% on all spend and 3% on all foreign spend. The foreign spend cashback was handy last month and this month, especially as SC has ended the 10% cashback on Amazon Prime, and 15% off on the Grab ride-share app offers. So we got only $28 cashback in June. Ah well, still better than nothing.
Interest on E-Fund
Since we didn’t hit a monthly spend requirement from the e-fund bank account, we didn’t manage to max out the interest rate. So interest is well down at $24 this month.
back to menu ↑
Expenses in June 2019
So the first week of June was holiday time and expenses were higher than the rest of the month. Even so, we had our lowest expense month of the year! Yippee! We have dialed in our desired level of frugality and are beginning to just cruise now.
But the question is – did our side hustle income cover our expenses in June? Yes, our side hustle income covered all our expenses. So we continue to be Location-Independent through Side Hustles.back to menu ↑
Savings Rate & FI Progress
June was another month of firsts. Our savings rate set a new all-time high of 89%, beating the previous ATH of 88.55% from February. Even though holiday expenses went up a bit, we managed to stay above our annual target of 75%. The year-to-date savings rate now stands at 85%. It is clear we underestimated our income and overestimated our expenses while setting the goal, but it’s a rather pleasant outcome!
In our recently published Beginner’s Guide to Financial Independence, we explained how a 60% savings rate can take you from zero net worth to being financially independent in just 15 years. But if we maintain our YTD average savings rate of 85% , we can do it in just 5 years! Just goes to show the power of upping your savings rate.
We are now 27% to GeoFI. I am contemplating turning this into a net worth report but I am worried about privacy. But Financial Mechanic, a new blog I am following makes a good case for sharing some financial information. Food for thought.back to menu ↑
Why not start a side-hustle?
Starting side hustles has not just boosted income and sped up our FI journey, but has made our life more resilient and anti-fragile. This is especially important because my wife is a full-time mom and I am the sole earner in the family.
Relying on a single income is risky. If that single income disappears, your emergency fund can tide you over until you find a new job. But what if you are out of work for an extended period of time, say due to a recession? Or because your industry has become automated and your skills are redundant?
That’s why having a side hustle is a great hedge to your primary source of income.
So why not take action today? Don’t wait for the perfect moment or that perfect idea – just start. Start a blog using my newly published step by step guide.back to menu ↑
Starting in 2017, we have been seeking financial independence by counting every dollar:
- Increasing income:
- Picking a career in high-paying industries
- Getting above inflation wage increases, bonuses and quick promotions
- Dramatically increasing salary by becoming expats
- Creating multiple semi-passive income streams through side hustles
- Reducing spending
- Never buy new unless for hygiene reasons (clothes etc.)
- Bought used cars, mostly used or handed-down baby clothes, used furniture, used toys… you get the picture
- Avoid buying depreciating assets as much as possible – we are car-free!
- Avoided all debt except mortgage (leveraged debt is a wealth-builder)
- Saving hard
- Saving at least 75% of our net income
- Created an emergency fund of 6-9 months expenses
- Learning the tax code to reduce taxable income legally
- Investing smartly
- Making our savings work for us by investing often and regularly
- Creating a long-term FI plan and sticking to it
So June was a good month overall, and our highest savings rate of 89%! I doubt we will top that this year.
So how did you do in June? Do you have a side hustle? Did you meet your monthly goals? Tell us in the comments below – I am eager to hear what worked for you!