Personal Finance

Where I’m At Today: Journey to 100k a Year in Income Just From Investments

In a previous blog post, I discussed how I would start releasing my personal net worth and income I make from assets + investments each month. 

My goal is to get to $100k per year in income from assets + investments.

In this post, I’m going to share where I’m at today.

Before I dive into the details, I think it’s also important to note how I got here. For those that don’t know, I built and sold a digital product studio called Jakt. I started it in 2012 when I was 22 and sold it in 2019 when I was 29. I ran the business quite profitably so along the way my net worth grew. For reference, the business was always profitable and did 6 figures in profit every single year. We had a few years at over $500k in profit, which helped quite a bit.

While this may seem like a lot of money, there are a couple of things to keep in mind. First, I lived in NYC so the government took A LOT of this money. Second, as the business grew so did the cash reserves needed to keep on hand. So pretty much all of my net worth and cash was tied up in the business. When the sale happened, I was able to access the cash that we had built up and achieved some liquidity. These are the funds I’m using to now invest in other assets. 

Before the sale of Jakt, I did make some investments as well. They were mainly long-term investments that were generally pretty risky and did not produce cash flow. These investments account for about 25% of my net worth right now but do not spit off any cash. These include things like investments in start-ups, films, crypto, and art. Now my focus is turning towards cash-flowing assets.

Net Worth:

Total: ~$1M

Business accounts related to Polpo Group 5%

Alternative Investments that do no cash flow (Film, Crypto, Startups, Art) 20%

Savings 75%

Income from Investments:

Right now I don’t have much cash flow from investments. As of October 2019 the savings I currently have in hand yields about 2%. Although the Federal Funds Rate keeps dropping so that might change.

The interest from savings provides me ~$1,250 per month. 

To get to $100k per year, we need $8,333 per month. So, we’re roughly $7,000 shy of this target. 

Because savings accounts are highly liquid, the idea is to keep earning 2% while I evaluate investment opportunities. However, the goal is definitely to move much of this money from savings into other investments that yield greater than 2%.

Important Notes:

  • Along this journey, I will most likely start some new businesses and have active income coming in. However, I will not count any of this income as income from investments unless it is from owning a real estate asset or I am removed from the day to day operations of the business. If I’m working every day on the business, to me that’s not an asset yet. But I will definitely use that income to invest in other cash-flowing assets or re-invest back into that business to remove myself from the day-to-day operations and truly turn the business into an asset that cash-flows without me.
  • Right now I have some revenue from and but these are essentially break-even right now as all the revenue is being used on business expenses.
  • My girlfriend and I do not have any other active income right now so we are currently using some of the savings to live. The goal is to invest our savings into assets to cover our living expenses (that’s the reason for the $100k per year number). That said, we’ll likely have some active income to supplement this, both because I love businesses and creating things and also because we likely will need more cash on hand to invest to achieve our goal or to at least make it so we aren’t burning through our savings as fast so we can invest that fully.