This is not my actual investment income. To get this figure I first add up my retirement accounts, emergency fund, and any other money I consider permanent savings. What the total of my savings would earn at 6% interest for a month is my monthly investment income. The 6% figure is the highest interest I can earn in an FDIC insured account right now. My plan is to eventually have my investment income equal or exceed my expenses. My expenses were $1581.53 in April so I have quite a way to go. The total of my expenses should go down though, making the gap not quite as large.
I just started reporting this figure now because I should now make enough money to be able to contribute enough to my savings to have this figure consistently rise. However if I’m no longer able to get 6% interest or my stock fund declines significantly the amount could still go down. I’m hoping that won’t happen and my contributions will be sufficient to cover any minor fluctuations.
{ 3 comments… read them below or add one }
This post motivated me to figure out what my monthly interest earned on all my savings accounts is. To my great surprise it is about $40 a month, way more than I would have guessed. It’s inspiring!
That is pretty good. Is that the actual interest or estimated interest like mine?
It was actual. In March we made 40.30 and April we made $38.66. Pretty cool!