Last year has been a difficult year for me. I lost most of my passive income because it was too risky. The income I get from them are good and big but with the cost and risk that any moment they could be gone. And that's what happened. Although not all.
From P50,000 per month in passive income, all hell broke lose last year, and it went down to P30,000 per month in passive income (net after tax). It hurts thinking that all your hard work was reversed back 4 years. P30k was my goal 4 years ago.
And I have come to realise that,
Its better to have stable income than unstable high income.
And also with my 2 businesses failing. It just took a toll on me and I took a rest from it all.
What did I do with those months doing nothing?
Well, its not actually nothing... The thing is, what gives me joy is reading. So I read a lot of things during those times and I am perfectly happy and clear headed now. Spent time with loved ones and just taking things easy from then on.
I did start small businesses on the side that made income. From additional P1,000 per month all the way to P200,000 per month at one time And then poof! its gone. It was insane. But it taught me something that I realized for myself. And that is...
I love business and investing. Even with all the ups and downs. I really do like it.
And this time, for 2018. I think I have come to terms with that reality that business and investing can be fun and rewarding and challenging for people like me who enjoys learning. So this year, I'm going to be full time investing and going into business. But with the added caution to not repeat the same mistakes I made last year. Not to take it too seriously to the point of stressing myself out.
I will be starting my first business for 2018 soon and hope to increase my passive income this year doing that. And I will be documenting the journey here if some of you would like to learn from my experiences. Would that be a good idea?
So current passive income is P32,927 (net). I hope to increase it to P40,000.
Performance of Fund
On the bright side, even if I lost money from the businesses I put up to increase my passive income. I still made money overall because of my stock portfolio.
For 2017, my portfolio was up +26.33%. That +26.33% in terms of cash is already equal to 10 years worth of living expenses, so I am in a very good position to take risks in business, knowing that even if I don't work for 10 years, or fail in business 10 years in a row (I really hope not), I will be able to feed myself and my family.
I would not consider the performance of the fund as me being a great investor of stocks. I consider it luck because of the present administration (Pres. Duterte)'s "Build, Build, Build" program that the stock market experience such a gain.
Why go into business instead of stocks?
This blog has always been about stocks and investing in stocks for passive income and financial freedom. But recently, I have been having a hard time looking for good opportunities in the stock market to increase my passive income. In short, I see that the market is expensive and the money I could have invest might make more money if I just start a business. Stocks are businesses after all. They are the same.
...
I hope we have a good year.
