Hello and welcome to my first post on this blog!
And it’s the income report! Financially, we all start somewhere and are going somewhere. I am not exactly starting from zero right now—I started at zero in 2008 after graduating from university with $19K in student loans, which I’ve since paid off.
From 2008 to 2019, I made significant progress through frugal living and investing. I had the chance to pay off my mortgage and live a stress-free life, but in 2019, I took out more equity and, unfortunately, lost a significant amount of money between 2022 and 2024 due to a series of speculative investments—first in COVID-related stocks in 2021 and then in options in 2024.
Now, I’m semi-starting from scratch. I’m back to growing wealth steadily through cash flow management and balance sheet discipline.
Since I am a full-time stay-at-home caretaker for my mom, who requires 24-hour care, the only income we have is some dividend income and my mom’s small pension. I still expect stocks to grow around 10% per year, which will add to our net worth over time. Since I can’t go out and get a job, I have zero employment income. I’m working on two blogs and hope to earn some money from blogging in a few years. I’m also upgrading my skills by learning web development coding, with the goal of securing remote freelancing opportunities in the future.
Car insurance and gas expenses are low because I only drive to get groceries. The car is 12 years old with 125,000 miles, and I’ve switched to liability-only insurance.
I have no mortgage because I converted it into a HELOC (Home Equity Line of Credit). The interest rate is higher, but the advantage is that I can pay off any amount I want, resulting in an immediate increase in cash flow. With a mortgage, payments are fixed for years.
My grocery expenses are extremely low because I buy bulk, unprocessed food. I also eat one meal a day at noon. I don’t recommend this for everyone—those with physically demanding jobs, for example, may find it unsustainable. For me, it saves money and supports a healthy lifestyle. Research suggests one meal a day can increase longevity. Many Buddhist monks follow this practice and often live into their 80s or even 100s.
I expect net cash flow to increase by 7% per year as a result of dividend growth and paying down the HELOC. I also expect net worth to grow by around 7% per year due to stock and house appreciation, combined with monthly net cash flow. I hope to add an additional income stream from online businesses in the future.
Nov, 2024 cash flow update:
Income( Amount in USD):
Dividend income $40.60
Mom’s pension income $1,384.36
Total income: $1,424.96
Expense:
Car insurance $43.19
car maintenance $0.00
TV, Internet $87.01
Cell phone $11.90
HELOC interest $447.86
Condo fee $298.20
Condo fee – special fee $57.40
natural Gas $33.62
Electricity $49.06
Home Insurance $24.09
Grocery $103.39
Bank fee $7.70
Credit card $12.53
Net cash flow: $249.00
Net worth update: