Breaking Down How We Made $50k in Passive Income

Tracking TNFG’s 2021 Passive Income. PS – They lied it’s not passive at all.

The pandemic changed the world. No longer did we have to go to work, instead work became inescapable. As such, we picked up more passive income. Our investment portfolio struggled a bit and price inflation went up, the road to FIRE is going to be longer than anticipated.

The solution to a challenging world is a tougher person.

And “tougher people earn passive income streams.” We will all have to embrace the polarity of wealth. You literally have to spend less to be richer and bring more money to be less poor.

Final total: $53,396.89

The Power of Virtual Consultations in 2021 – $44,595.72

My wife and I have two consultation-based side hustles on top of our 9-5s. Her passive income position is way more consistent. While I brought in an average of $250 per month, she racked in $2.5k on average per month. Technically, mine is a hobby at that rate.

We work hard for these extra dollars (but there has to be a better way). It’s definitely not giving passive income vibes.

If you are just starting off on the multiple streams of income journey, just know it’s going to be hard! You will doubt yourself and your time management skills.

In the long run, your family will be thankful for all the effort. Even if it ends in spectacular failure, you will learn something new.

Wife’s Small Business Events Manager: $36,666.76

To elaborate, she works (virtually) for a small business incubator start-up which nets around $3,000 per month. Don’t tell her but she is a hyper-focused A-type personality who gets bored easily. Whereas I can get bored, I’m quicker to find something for me to do. This is likely why blogging about personal finance works for me.

Most of the time, I’m still not doing what I’m supposed to do. Just remember if there are no taxes withheld, it’s about 30% owed during tax season on these earnings.

Financial Consultation: $7,928.96

I’m definitely not a salesperson so when I get clients, it’s pretty random. Doing one-on-one consultations is rewarding since I’m teaching what I know directly. It gets harder to pivot because I know between sessions people relapse. To best honest, I’m in favor of fixing issues not letting them endure for the long term.

I need to pivot to selling e-books like the Get Rick Quick like a Millionaire strategy or writing my own book. It’s been a long time coming but it’s in the works.

Passive Income Producing Side Hustles: $5,773.72

This is where the rubber meets the pavement. Real passive income is hard to start, momentum-wise.

You have to build community and be magnetic enough to draw people in. I don’t think I’m good at doing either. Especially since I’m not on TikTok.

Branding and becoming a social media influencer is harder than it looks.

I like peace and quiet. I travel for culture and I’m not grandiose. Generally, I lack all the key components to create Frankenstein’s monster.

All of this doesn’t bother me in one bit, but it doesn’t give me access to a large crowd. What I’m choosing to learn from this is that not every path works for everyone. And Wealth can come through various avenues.

I’m likely an expertise-based entrepreneur. That means big lump sum values over smaller payouts.

Ad Revenue: $0.00

The TNFG web blog hasn’t brought in a dime since its launch in July of 2020.

It’s kinda a failure but I don’t mind. I’m focusing on this as a memoir for my next of kin one day. Or for anyone brave enough to dig through the notes to find that building wealth is easier than advertised.

I’m sure that when we hit the multimillionaire mark (est. mid-2023) is when more people will pay attention. After that most people will either default to “he is just lucky or privileged” vs actually following (reading) all the breadcrumbs that I left behind.

Medium: $3.72

This year, I signed up for Medium’s partnership program even though they charged me $50 a year. It was a failed attempt to build a readers’ community. The year of work garnered less than $5. I’m happy I didn’t ever dare to pursue a career in writing.

These guys are struggling.

Rental Income: $5,500.00

Rental Real Estate was up and down in 2021. We started with major renovations to the bathrooms and kitchen.

We did get tenants as of Fall 2021 and earned $5,500. It’s a consistent $1,250 per month. However, we barely break even if we talk about the $1,000 expenses for the mortgage and the Home Owner’s Association (HOA) fees per month. This is a long-term idea and the home is already up $40,000 since purchase. We poured in about $50,000 worth of renovations so it’s far from breakeven.

Although it’s a near net loss, here’ hoping for a future net passive cash flow of +$1,000 per month when we are done paying it down in late 2025. For now, being a landlord does have tax advantages.

Referral and Affiliate Income: $270.00

Our Referral for M1 Finance came in at $270. There were $20-for-$20 and as high as $50-for$50 deals if someone invested with my promo code. Invest $100 and get $50, that’s a 50% increase while the market was wavering around 11%.

M1 is an amazing broker.

Real Passive Income through Investing for Dividends: $3,027.45

In total, we brought in an average of $252.45 dividends per month, representing over a 16.78% increase from 2020.

This included companies like $MAIN, $XOM, $NVDA, $HD, $MMM, $JEPI, $SBUX, $VTI and etc.

Our biggest payout was $700.92 in December; an amazing pivot from dividend cuts in 2020 as we approach a new normal of getting back to full labor participation post-COVID.

Time will tell if that persists. Either way, this goes beyond being Debt Free toward being Financially Free. Note, Dividends are taxed but at Capital gains rates (generally 15%).

Blog Promotion, Growth, and Passive Income Potential?

TNFG website has gained notoriety and acclaim for transparency, however, it’s a far cry from being profitable. I’m not sure how I will feel once we become Millionaires by July 2023, but at this rate, the blog is a labor of love.

The traffic is 100% organic with over 62% accessing through their mobile. Unfortunately, I don’t think it’s a mobile-friendly endeavor. I’ll have to consider my desired audience and effort going forward.

TNFG amassed 27,456 unique reads and was nominated for a PLUTUS award. All of which brought in $0. There are less than 3% of certified Financial planners are Black. Unfortunately, the community doesn’t prioritize building wealth (at least not in a sustainable way).

In 2017, the research found that median Black wealth will hit zero but the pandemic sped that up. In the end, the choices come down to the person since there is a myriad of ways to create generational wealth.

2021 Passive Income Progress Report – Final Thoughts

Rental income is nice but offset by rental expenses. And side hustle or contract work is tax-free so there is a hefty tax later. Blogging is very difficult and it’s ultimately not very passive.

So far, I don’t think it’s sustainable for me or effective. I make over $100,000 at my day job and generally don’t put in this much effort (i.e weekends). In the end, there are multiple ways to build wealth. Some styles might work best for others. To generate wealth over time, you can focus on career expertise for promotion opportunities.

You can also invest in Real Estate to rent or Air BnB. Either way, they aren’t easy but this is a price for financial freedom in the long run. You have to put in the effort to generate passive income.

Additionally, check out the Financial Griot Podcast where we chat about all things Financial Literacy and Life. Or link up with me on Instagram.

About Author