Author Topic: My passive daily income is growing about 2.5 cents a day  (Read 6005 times)

rob in cal

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My passive daily income is growing about 2.5 cents a day
« on: November 15, 2014, 05:03:04 PM »
    While doing my pizza/pasta deliveries for work, I often have time to ruminate on a whole variety of subjects.  I figure that on any typical month my passive income is about 90 dollars a day (including restaurant ownership income, stock market capital gains and dividends, and loan interest) and is rising about 2.5 cents to three cents every day, assuming that my invested capital keeps growing about 3,000 dollars a month. I figure that this amounts to an increase of 20 to 30 dollars a month on average in passive income growth, and broken down by day represents an average passive income daily rate growth of somewhere around that 2.5 cents a day to three cents.
    So, this means that every month my daily passive income will on average be going up about one dollar.  Ninety dollars or so this month, ninety one dollars next month, 100 dollars a day in a year or so, 112 in two years etc, with higher incremental growth due to compounding of course. And obviously with so much invested in the market, these returns are based on average historical return rates, certainly not guarenteed.

arebelspy

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #1 on: November 15, 2014, 09:37:10 PM »
It starts with that, and just keeps growing.

Soon: look out below!



Well done.
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If you want to know more about me, this Business Insider profile tells the story pretty well.
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Ricky

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #2 on: November 15, 2014, 09:58:38 PM »
Yep, but one day extra 0's will mean nothing and you'll have to find a way to spend it ;)

Kriegsspiel

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #3 on: November 15, 2014, 10:03:21 PM »
GOOD JOB LITTLE CHAMPION!

dantownehall

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #4 on: November 17, 2014, 01:52:55 PM »
Nice!  I sometimes like to calculate how much I earn per hour passively.

Just did and I'm currently making $0.50 an hour, every hour, even when I'm sleeping.

Pooperman

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #5 on: November 18, 2014, 06:43:39 AM »
Nice!  I sometimes like to calculate how much I earn per hour passively.

Just did and I'm currently making $0.50 an hour, every hour, even when I'm sleeping.

You're making $2.40/hr in a full time position (40hr/wk) that you never have to go to.

As for me, I'm at about $0.25/hr in my full time position. Just enough to live as a pauper in some 3rd world country.

PathtoFIRE

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #6 on: November 18, 2014, 07:14:45 AM »
Not to make things too complicated, but when comparing your hourly average passive income to a job, remember that your estimate is actually conservative when you consider that taxes on your passive income are likely to be a small fraction of what an actual hourly full-time worker would have to pay. So while someone with a $500k stash could estimate $20,000/yr pass income, or $10/hr full time for 2,000hr/yr, but without payroll taxes and likely diminished state/federal income taxes, so maybe mentally add on another 10%, or more like an $11/hr full time job.

zenyata

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #7 on: November 18, 2014, 07:53:06 AM »
Could someone elaborate on the primary variables / assumptions that need to be accounted for and how to actually go about calculating the passive growth numbers ?  I'm a bit confused as to what all goes into this kind of calculation.

Thanks !

fireferrets

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #8 on: November 20, 2014, 03:56:36 PM »
This is a neat idea! As soon as I get a full-time job (been doing contract work lately), this is going to be at the fore-front of my brainstorm/daydreaming walk-breaks.

CCCA

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Re: My passive daily income is growing about 2.5 cents a day
« Reply #9 on: November 21, 2014, 12:30:20 PM »
Could someone elaborate on the primary variables / assumptions that need to be accounted for and how to actually go about calculating the passive growth numbers ?  I'm a bit confused as to what all goes into this kind of calculation.

Thanks !

This is not exactly what the OP did, but if you can calculate your annual gains in the stock market and any other passive income and then divide by number of working hours in a year, you can get an hourly rate for your passive income.

For example, if you get $20,000/year in passive income, your passive income is equivalent to about $10/hr of someone working 2000 hours/yr (i.e. full time 40hr/week work).

$20,000 / (250 working days/yr x 8 hours /day) = $20000/2000 hrs = $10/hr.