Income/Financial Freedom Report – December 2016


Here’s the summary:


Capital One Savings/Money Market

I’ve got about $50k in savings.  I’ve always been what the M1 group calls an “avoider”.  It’s basically someone who doesn’t want to think about money.

What this meant for me was that I would save some money, but I’d never check my bank balances, etc.

Honestly, if I didn’t feel like I had enough for the next few months – even if those few months contained an “emergency” – I’d totally freak out.

On the other hand, up until the last few months, I wouldn’t even check my savings account very often.  It was all on auto pilot of saving just a few hundred dollars a month.

I’ve moved my money from their Savings to their money market account.  I understand it’s not FDIC insured, but I guess that if things got to that point we’d be in pretty bad shape as a society.

Money market accounts just invest in super safe bonds (that is, if you think the USD is safe).  So it’s basically a liquid/cash equivalent.

The tradeoff: I get 1% in the money market account vs. the 0.75% in the capital one savings account.  I know it’s not much, but it’s free money and I sort of want to keep all of this cash liquid – so why not?

BofA Checking/Saving.

I have a fair amount of money in my BofA savings.  I’ve never had so much, and here’s the story: when I bought my first rental property, BofA pursuaded me to upgrade my account.  Here were the conditions: certified checks (which I needed for the downpayment) would be free plus I’d earn interest in my checking account.  In exchange, I’d have to have to keep $15k in my savings.

So now I have $15k in savings at all time.

That yields $0.14 per month. That’s less than 0.01%.

Lending Club

I now have about $6k in Lending Club.  So far, it’s pretty much performing as expected.

I’ll have to do a post about it later.  So far, it’s one of the highest returning and most passive investments to date.  Of course, time will ultimately tell.

136 N 10th

Only made $71 this month on it.  In the first month it made me nearly $1k.  This is mostly because a bunch of expenses have occurred, and I know I’ll be negative cash flow next month for many of those same expenses.

Vertical Credit Spreads

I’ve just dipped my toes in the last few months into credit spreads.  After taking many courses (mostly on Udemy), I think I understand vertical credit spreads as an income strategy.

I’ve been trading with a small account (roughly $5k).  The loss is just a paper one, and I expect it to rebound.

Financial Freedom Report

My expenses went down considerably last month.  But so did my passive income.  I’m now at 3%.  But I expect once the apartment building is working out well, I should be at roughly 20%.  Of course, the main goal of all of this stuff is to get to 100% ASAP.

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