LIVING OFF DIVIDENDS & PASSIVE INCOME

I’ve been doing micro loans on Prosper for a few months now. I have 31 loans with $1910 loaned out. I’ve only transferred in about $1750 which means that my interest is now being loaned out too!

Thats the secret to attaining true wealth – Compound Interest. Have your interest earn you interest!

Unfortunately, there’s no way to shield this from taxes, but maybe if my corporation were to open an account, I could atleast have some deductions against it. Or maybe get a self-directed IRA!

The good thing about Prosper is you can start out with very little money. Yes, your money is illiquid but you’re getting pretty good rates of return. I’m getting around 18.6% interest.
Nowhere close to the 21-23% that other people are getting, but I haven’t had a delinquency yet.

I’ve also lent out some money on a private trust deed at 25%, which actually pays out 2% every month. Since I could invest that in some else too, that also qualifies as compound interest.

I also have some Canadian Energy Trusts that pay out a decent 11-15% dividend yield (they show up in my account every month). Since I don’t withdraw this money but instead reinvest the dividends, they’re all compound too!

Hopefully many years from now, I’ll be able to live off the dividends generated by the investments I make today.

I love compounding interest!!!!

• October 2007 Passive Income Update It time for an update on October's passive income and online earnings. Last month's total was nice $1,736.80. Plus I got another $100 for referring a friend to TDAmeritrade, so counting that its $1836.80. I'm not counting the income from Prosper since its rather difficult to manually go through ~50......
• Monthly Passive Income Crosses $2,000 Mark! I've finally broken the $2,000/month in passive income! Passive income for February 2008 was $2,383.55. Not bad considering I wasn't even in the country! Here's the breakdown: Online Income: $$1399.29 Adsense: $416.22 Linkworth: $221.99 TLA: $95.87 Kontera: $51.36 Affiliate: $83.85 Prosper Referrals: $100 Direct Ads: $430 Savings Accounts: $138.43 Real......
• January's Dividend Income & How The Subprime Mess Has Affected Me. I've been traveling for the past month so this post is a little late. I had already posted my online income which was $778. I finally got a chance to add up my monthly dividend income from my stocks, Canroys, CDs and savings accounts. The grand total for January was......

• Transportation Alliance Bank’s Premium Savings Account Review Transportation Alliance Bank (TAB) is one of many banks offering online savings accounts. They were once at the top of the interest rate ladder at 5.25%, but as interest rates have fallen, they have failed to remain competitive and are only offering 3.00% APY on your money. To open an......
• How Not to Get Stuck in a Sub-Prime Loan When Looking For a Mortgage Obviously, potential mortgage lenders look at your income for the last two years and your credit score when determining if you are “home loan-worthy.” However, income can now be “stated,” and bad credit does not mean you will be unworthy in getting a loan. Bad Credit is just as attractive......
• Spending Money To Save Even More Money. Over at Kottke.org there is an interesting post on how companies are asking us to spend money in order to benefit different charities. His example is the RED campaign at The Gap, which gives money to stop HIV/AIDS in Africa for each dollar you spend on their RED items. Kottke's......

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