Those who read the update yesterday, for week 21, will already have an idea of what to expect from this post, but for those of you who are just joining this wonderful adventure, or who may have skipped a post, allow me to fill you in. I spent the entirety of week 22 away on holiday in Scotland to coincide with my Grandparents diamond wedding anniversary (an incredible achievement I’m sure you’ll agree). Because of this, I took a week off to enjoy time with the family and did quite literally nothing towards this project.
Perhaps the closest I got to doing anything towards work was my choice of holiday reading – “The 4-Hour Work Week” – which caused quite a stir. My Grandfather found it a source of great amusement that I would entertain such a concept, and it seemed the whole town had heard about it by the end of the week, prompting many interesting questions directed my way. To a man who was admirably working a 40 hour week at the age of 14, it is no wonder this seems so outlandish (I must admit, it does to me also from what I have read so far, though I am not very far through, so will attempt to withhold judgement).
But you are not here to read a travelogue, there are hundreds of thousands of blogs you would be reading if that is what you are after. So let’s get down to business. You may ask if I was away, and did nothing for the entire week, what could I possibly have to say about this week. Well, in fact, this will actually be one of the most interesting weekly totals so far in my opinion not in spite of, but due to the fact I did no work.
Let me explain why I say this; one of my key aims has been to build up passive income. For me, passive income is any source of income that does not require any ongoing, regular effort or time to accrue. There will clearly be occasional times where a bit of time and effort is needed on these income sources, but in the main they are self sustaining. This type of income is how true financial freedom is achieved, as it removes the link between time and income – one of life’s great battles. I would like to make it clear that I am not saying passive income is easy income. I do not believe this is the case – it may eventually become that way, but certainly passive income does not just appear one day. In the vast majority of cases, establishing passive income sources takes time, hard work, effort and many other things. Once a person has done this and achieved a passive income level that outstrips their spending, that’s when the sitting back and watching the money roll in can begin, although there is usually no guarantee those income sources will last forever.. For most of us at this stage in our lives, this is something we only dream of, however, there is nothing to say it should be impossible for us to attempt to achieve that.
Now you know what I mean when I talk about passive income, and why I see it as such an important factor, you perhaps understand why I feel this week will be an insightful glimpse into how far I have come. As I had done no work during this week, whatever income I did achieve would be from passive income. As you can see below, the eventual total is £35.81.
I will explain each source briefly. Firstly, you may be looking at the cashback income and wondering how this could count as passive income. Well this is in fact from referral fee for cashback sites. On this blog, whenever I talk about a cashback site, I use a link that, if someone signs up via, earns me some money. This is explained further here. It is a way of earning some money from this blog, as well as an incentive for me to write useful and engaging content.
The Tracker fund is fairly self explanatory, and I have touched on it a lot in the past, so if you do want to read more, see this post. Google adsense and the Halifax bank account are slightly different, as each are paid monthly, and this week happened to be the end of a month. As such to get a clearer indication of an average week, these should both be divided by four, which gives an actual total of around £26. Obviously this is a fairly crude indication of an average week, as many factors are involved and things vary, but it provides an idea at least.
I am pleased to be able to see that I have built up some sources of passive income. It is a respectable amount given the short amount of time I have been doing this and the almost non-existent level of investment, but at the same time it is hardly time for an early retirement in Honolulu. Over a year this would be £1,352 which would certainly be a nice amount to have coming in for very little ongoing effort. Of course, as time goes on I hope to add to this amount of passive income as much as possible.
Revenues in Week 22:
Week 22 Total: £35.81
Running Total: £3991.48
For a full breakdown, see the balance sheet.
The Week Ahead:
As I am writing this a fair way through the current week, I already have a good idea of where I stand. It has been a fairly hectic week in terms of getting back into the rhythm and sorting out all the things that went neglected for the previous week – mainly hundreds of emails. As such, I hope to make £200 in week 23