Live Off Dividends

Passive Income and Personal Finance

Month: February 2018 (page 1 of 3)

10 Ways To Earn Passive Income

Passive income is necessary for effective wealth building. I’ve put together a list of 10 different forms of passive income to help you build wealth. I’ve found that some passive income streams work better for certain people than others. It’s up to the individual to find which will work better for their situation as well as their personality.

Disclosure: Some of the links below are affiliate links, meaning at no additional cost to you, I will earn a commission if you click through and make a purchase. Thank you for supporting liveoffdividends.


1.) Stock Investments

Investing in certain stocks, ETF’s, index funds and mutual funds will provide you with dividend income. This is my favorite form of passive income because it’s one of the easiest forms.

2.) Real Estate

Owning rental properties or commercial properties can generate rent for you that ideally, will cover all your expenses and provide you with a positive cash flow. Rental properties that are self managed require work from time to time, making it a little less passive. There are property management companies that can make rentals almost 100% passive, at a cost.

You can also invest in real estate without purchasing any property. Realtyshares allows you to invest in real estate with a small amount down.

3.) Start A Business / Buy A Business

Starting a business is probably the ultimate wealth builder. Initially a business will require full time hours but eventually you can hire someone to run your business to make it passive. You also have the option of buying an already existing business in which case you could hire someone to run it immediately.

4.) Start A Blog

Starting a blog is a great way to earn passive income. There are blogs out there that make millions of dollars per year. Blogs generate money through advertisements, affiliates, sponsored posts and more.

If you’re interested in starting a blog support liveoffdividends by signing up for Bluehost webhosting using our link here. You can read our full Bluehost review here.

5.) Write A Book

Writing a book is a very pure form of passive income. Though writing a book is very time consuming, once you publish it, all the work is done. You can publish your book on Amazon and simply collect the profits.

Check out the ebook I wrote called Investing In The Stock Market: The Complete Beginner’s Guide

6.) Peer To Peer Lending

This is a form of passive income in which you invest in loans to other people. There are many different loan options and there is always the chance that the borrower will default. I have yet to try these sites but two of the most popular are Lending Club and Prosper.

7.) Create An Online Course

Designing an online course is similar to writing a book. You put all the work in once and then it’s on autopilot. I’ve seen some very successful online courses.

8.) Create Youtube Videos

I think we’ve all seen some of the successful Youtube content creators out there. These creators make money in various ways including sponsored products and advertisements. Youtube can generate a large amount of passive income if you are able to build a large enough audience.

9.) Rent A Room In Your House

This can take a little upfront work but it can be pretty lucrative. Sites like Airbnb allow you to easily rent out a space in your home for travelers.

10.) Create A Mobile App

Though you may not be a software developer you can still create an app. You can hire out all the programming work to get your app finished. Once finished there’s little involved aside from bug fixes and updates. Apps generally make money through ads and in app purchases.

2018 Tax Brackets

There have been many changes to 2018 taxes in the recently passed GOP tax reform plan. Most of the tax rates and income thresholds have changed from 2017. Though, there are still seven brackets.

There is a common misconception that if someone crosses into the next tax bracket by even just $1 their entire income will be taxed at the new higher percentage. This isn’t the case. Just the amount earned into the next bracket will be tax at the increased rate. This is also referred to as marginal tax rates.

For this example we’ll assume that someone is a single filer and made $38,701 this year. The top  of the 12% tax bracket is $38,700. They will be taxed $4,453.50 for the $38,700 and then they will pay 22% on anything above $38,700 up to $82,500. So they will pay 22% on the $1.00 amounting to $0.22 for a total of $4453.72. Not 22% of the entire $38,701.

Here are the current tax brackets:


Net Worth Update: January 2018

This was an incredible month for my net worth. Actually, the best month I’ve ever had. The large increase is due to the recently acquired rental properties. They’re worth much more than we paid for them. I’m really excited to see where this goes this year. I’d love to see it surpass $200,000 this year.

For those wondering, I use  Personal Capital to help track my net worth and I highly recommend giving it a shot (it’s completely free). You can link all your accounts and it basically does all the work for you. It also gives you access to a bunch of really cool tools, like the investment checkup tool.


My home value increased to $105,000. I’m confident I could get more than $105,000 for this house but, I try to value everything conservatively. +$5,000

My truck value decreased from $7,147 to $6,137. -$1,010

Total: +$3,990

Investment Accounts

Robinhood account increased from $49,700 to $51,998. +$2,298

Roth IRA increased from $15,434 to $15,984. +$550

457b increased from $8,710 to $9,571. +$861

Total: +$3,709


My cash increased from $9,829 to $2981. -$6,848

Total: -$6,848


North Rental is valued at $100,000

East Rental is valued at $100,000

South Rental is valued at $80,000

Cash $1,700

Total: $281,700/2 = $140,850


Total assets increased from $194,720 to $332,521. +$137,801


My mortgage decreased from $58,649 to $58,501.

Total: -$148


North Rental $80,000

East Rental $80,000

South Rental $50,000

Total: $210,000/2 = $105,000


Total liabilities increased from $58,501 to $163,499 +$104,998

My net worth heading into February is $169,022 up from $136,219 last month! This was a 24.08% increase! This was one of my best months since I’ve began tracking.

The chart above shows my net worth month to month starting from January 2016. You’ll notice there are some missing months, those are all months that I failed to track. It’s interesting that my net worth remained relatively flat in 2016 until the end of the year, but in 2017 I had steady growth from the time which I diligently began tracking.

The chart above shows my net worth’s year over year growth. I hope to see steady growth continuing 2018.

My year over year net worth increased by 110.87%! That is a $88,869 gain from January 2017 to January 2018. I’ve come a long way since January 2016 and I can only hope to keep up this pace.

I have all my old net worth data dating back to January 2016. As you can see by the chart, I was spotty in recording it. I’ve found that tracking my net worth motivates me even further to increase it. So, I will continue to do so and track the results. Since I’ve began tracking my net worth again I haven’t had a single month where it has went down. Again, I can’t stress enough how valuable it is to track your net worth and Personal Capital is a great tool to help you do so.

Here are the rest of my monthly net worth updates if you want to check them out!


I think it’s important to track my age and where I fall percentage wise in my age group as well. I’m 24 years old and my net worth puts me in the 97th percentile. I finally managed to break into the 97th percentile! That’s a pretty awesome achievement to me. It looks like I’ll be able to break into the 98th percentile before I turn 25! Also, here’s the link that I use to calculate that.

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