Increased Expenses & Huge Volatility - Q1 Breakdown (Jan 1 to Apr 1)

Dated April 4, 2018

It has been 2 months since my last income report. Although I mentioned canceling all future income reports out of security precautions, I decided to bring them back for full transparency. This time, I will give a full breakdown, and the hard honest truth of where my current financial situation is. And what my future plans are moving forward. Please enjoy the Quarter 1 Income Breakdown of Dividend Raptor.

Income:
  1. Genesis Mining
    Mining was initially off to a good start at 25 TH of cloud mining. But over the last few weeks, difficulty rates dramatically increased. Part of the problem was due to increasing hash rates, and the large hiatus between mining activation for all presales. When I initially bought their BTC mining package on December 2017, with a March 2018 start date, the mining difficulty was much lower. Also during that time, the price of Bitcoin fell dramatically from the high, and hash rates dramatically increased - leading to higher difficulty rates. The initial 2 months were solid, generating me on average .00115 BTC per day. But it degraded shortly afterwards. Currently, it is approximately 0.0075 BTC per day or about $300 per month. As a result, I have removed Genesis Mining from my passive income recommendations. This was a high risk-high reward maneuver: A gamble that the mining difficulties as well as price gains, would not be as retrograde and that there would be enough room to account for such changes. Obviously, nobody expected the price changes to be this volatile and FUD to be as pervasive as it has been with government crackdowns and industry wide fluctuations. However, the demand is still prevalent as ever. Although a tad late, I might end up building my own mining rig in the near future to combat such a degradation in income.

    *Edit: Upon writing this, I've recently changed the mining allocation from my $BTC mining contract to 100% $ZEC. Due to Bitcoins increasing difficulty, especially with the influx of Asic miners in the horizon, I decided to change the mining allocation for daily withdrawals. Currently, Genesis only allows .005 $BTC minimums for withdrawals. Due to that, it was taking longer to receive payouts (i.e. From 5 days to 7 days). I've done this for daily income as $ZEC has a very low withdrawal minimum. Although I am losing some dollars due to mining auto-sells' network fees, I am able to parlay the daily transactions in $ZEC into whichever coin I prefer. Another update is that I've recently taken the steps to build my first trio mining rig. I have purchased an Nvidia GTX 1060 and a CPU. More to come. 
  2. Cryptocurrecy Trading: 
    Quarter 1 was tough for everyone in the Crypto market as prices for alt coins and Bitcoin were down over 50% from the high at the beginning of the year at $20k. At the lowest, it was $6k. Because I was mainly a hodler, I did not even get to enjoy the brief market upsides during the Q1 lull. Part of this was due to emotions. I had a difficult time parting ways with my Bitcoins because I didn't want to sell too early. Due to this, I missed the brief bull traps when Bitcoin rose to 11k at one point. In addition, due to the low prices, my mining contracts had low profits, and so I had no choice but to hold those coins. It was at this point that I knew I was a terrible trader, but it was also a growing moment for me. I learned the following invaluable lessons:
    1. Always take profits when you can
    2. Make the profits in increments, and never make the increments too large
    3. Always follow your gut instincts. Believe in your trading ability, and don't get too greedy. Greed causes you to want to pump a coin for the max short term value. That causes you to lose money.
    4. Always use your multiple streams of income to grow the other streams. Don't be short sighted with maximum profits on one income stream. If you miss a profit, and the coin value goes down to where you can't profit anymore, that is an opportunity cost. 
  3. Day Job 
    I work part time as a bookkeeper for the family tax business. It's a small business that has over 30 clients. It is a one-man operated business with a relatively large amount of clients. Being a first generation American of Asian descent, my father normally does the bulk of assignments related to tax filing. As a result, my work load varies from time to time, and is flexibly adjusted each week. With a wage of $15 an hour and a rough estimate of 20 hours a week last month, I'm generating a low-ball estimate of $1,000 per month. 
  4. Side Income 
    The side incomes I've generated are small yet stable. They generate around $5 to $15 each monthly, with some garnering the rewards via paypal, while others accrue via gift cards for retail chains--usually Amazon on my end.
    Survey Savvy - $10 Survey Savvy gives me a fixed $5 monthly for enabling data tracking through their software and browser installs
    Harris Poll - $10 Gives me 300 points towards future Amazon gift card redemption by enabling Amazon Tracker on my PC
    Survey Junkie - $10.35 Is my favorite survey aggregator with a low redemption minimum of 1000 points. I've already redeemed 3 or 4 times since 2017. They usually have the easiest and highest scoring surveys. Their customer service has always been spot on too.
    Data Coup - $5 They provide $5 monthly, but so far have only paid $5 one time via direct deposit with an additional $5 coming 60 days later via promotion. They seem to be starting services back up, so it is hard to tell if this company will be a stable passive income source. But it doesn't hurt to try
    Ebates - $15.70 I consider Ebates passive income since it generates me cost savings from products that I already need to purchase. They give me cash back for all purchases on affiliated merchants, and income from users who sign up using my link. So far, I haven't had any new sign-ups for this quarter.
  5. Robinhood - $14 Dividends + $20 Short Term Gains 
    My Robinhood dividends have definitely increased from last year. Last year, I focused too much on short term trading, as opposed to long term holding. Last year, I gained $75 in extra cash from trading, and approximately $14 in dividends. This year, I already made the $14 in dividends with high income producing equities and bond funds. 
  6. M1Finance - $0.50 Dividends 
  7. Stash - $5 + $.03 Dividends
    So far in Quarter 1, I had one sign-up for $5 in increased assets, and my first dividend for $0.03. I decided to keep Stash as a recurring passive income source for the promotional offers they have had since inception: $5 for both referrer and signee. The more I market this product, the more assets I can receive. 
  8. Wise Banyan - $1 Dividends
    I don't consider Wise Banyan a totally passive income source yet, but I listed it on here for reference purposes to track my dividends, and also give full disclosure on how the funds are performing.
  9. Cash App - $5
    I decided to promote this product early this year because of their limited time offer of $5 free for both referrer and signee. I haven't received any referrals yet but I believe that they offer a great platform for purchasing bitcoins and sending fiat peer to peer. I earned $5 automatically for signing up under a referrer early this year.
    Total Q1 Monthly Income: 1386.58
    Grand Total: $3386.58

    Check out last year's passive income streams from smartphone apps and survey aggregators only. I didn't expect it to be this high. This is my standard to beat this yearCheck out this year's Q1 passive income payments. Thus far, I have made approximately $54 including the Survey Savvy (Savvy Connect) check I received in the mail. They do not yet allow paypal transfers for redemptions. I am well on my way to beating last year's side income of $238.26. Check out 2018's Q1 side incomes below.
Expenses: 
At the end of Q1, my expenses increased $200. This is because I started training in Brazilian Jiu Jitsu in New York City. After a 3 year hiatus, I made it a goal to start training Brazilian Jiu Jitsu in NYC with one of the best teachers: Marcelo Garcia. In order to be a man of my word, I enrolled in a yearly contract with monthly charges of $200 per month. This is a significant change this year from fixed expenses of $220 to $480 per month.

As some of you know, I moved back in with my parents at the beginning of this year in order to pursue my entrepreneurial dreams and to pursue my passions.

Current Monthly Expenses: 
Car Insurance - $48.14
Student Loans - $100
Misc. Expenses - $30
Future Monthly Expenses: 
Jiu Jitsu - $200
Metro Transit - $60
Mining electricity - $158 to $200
Dog expenses - $50 to $100
Prior Q1 monthly expenses: $478.14
Total monthly expenses: $738.14

Q2 Changes Impending: 
1. Focusing on Dividends
The first change I'm employing after Quarter 1 is drastic. Previously I spent way too much time investigating each stock prior to purchasing it and it led to finagling time and resources from other projects. This time, I am streamlining my assets a lot more. For blue chip stocks, I will be utilizing a consensus based approach. For example, I recently added Verizon (VZ) to my portfolio because of its status as a Dividend Aristocrat. I briefly skimmed their financials and saw that they've always had great cash flow and reserves. They have always managed to increase their dividends, and they have a low beta. This makes this a perfect stock to have some sort of predictability with returns and capital stability. Due to this change in approach, I will be increasing my risk as I won't be researching as heavily as I did previously. In my opinion, paralysis analysis has always caused me to hold in cash for too long. This is antithetical to most investors as one of the crucibles of investing is to "never chase yield." However, in my situation, I am changing my approach to cash flow first, and capital stability second. Obviously for the most high risk or lesser-known stocks, I will be doing my due diligence in order to protect my downside. Sign up to my newsletter to receive my weekly watchlists for unknown stocks that provide high yields.

Short term goal: Reach $100 in low-risk monthly dividends by the end of this year. Obviously my goal is to beat that by a wide margin.
Some of my watchlist:
$GE ; $T ; $MSB ; Plus a banking stock that I feel might moon (has to do with Blockchain).

Sign up to my newsletter for the full weekly list. Trust me, there is a lot. I'll be researching the unknown ones and investing in them because I believe some of them are sleepers.

2. Making Crypto Work for Me:
I've decided for Quarter 2, I am going to take at least some profits from my cloud mining and trading profits and invest them immediately into my Robinhood account. Due to me shifting my focus directly into yield and cashflow, I will be on a fast track to increasing monthly income from equities. Crypto will be my direct way to increase that income stream. I will be withdrawing at least $10 per week--which is all I will need to increase my dividends. This is due to the quality stocks I've recently acquired and are currently in my pipeline. My projected income for Quarter 2 will be a lot higher than Quarter 1 since I will also be designing my first mining rig. I aim to increase my monthly income through Crypto mining by $50 to $100 monthly after electricity costs.  Currently, my projected monthly income from dividends are $4 to $8. With my rapid portfolio changes, I aim to increase that up to $10 to $20 per month by the end of May.

3. Portfolio Changes:
a. Liquidated my Wise Banyan account. This has been a favorite of mine, but I had to let it go because they got rid of their previous affiliate rewards. And I wanted to use the cash to buy higher yield-high quality stocks with income.
b. I restructured my Robinhood Account in the following ways:
  • Sold 2 AAPL shares for  $85+ profit 
  • Sold 4 CWH shares for a $45+ loss 
  • Sold 2 shares of TEVA for a $5 loss 
  • Sold 5 shares of EAD after ex-dividend date
  • Bought 1 share of VZ 
  • Bought 5 shares of O 
  • Bought 5 shares of KO 
  • Bought 1 share of GOOD 
  • Bought 1 share of GLAD 
  • Bought 3 shares of NLY 
  • Bought 1 share of LTC 
Due to the following changes, I increased my monthly income to nearly $4 and my quarterly income increased as well. Due to my portfolio strategy shift for equities, I am now tracking the quarterly ex-dividend dates for the new stocks I've added. I am also taking that into consideration with future stocks on my watchlist. My goal is to make my monthly income stable across all 12 months, while adding positions to new stocks after doing my due dil on all high risk equities.

Quarter Payouts:
5 Ko Mar Jun Sept Nov $0.39>$1.95/qtr
4 Cnk Mar Jun Aug Nov $0.24>$0.96
4 Stor Mar Jun Sept Dec $0.31>$1.24
1 Vz Jan Apr Jul Oct $0.59>$0.59
Monthly Payouts:
5 O - $0.2195/share > $1.097/mo
2 Good - $0.125 > $0.25
5 Glad - $0.07 > $0.35
3 Nly - $0.30 > $0.90
4 Ltc - $0.19 > $0.76
Total monthly payout: $3.36



c. I lowered my M1 Finance allocation for Value Act Capital and Warren Buffet, and removed Medium Term Bonds. I added VTI to cover the remainder of the pies instead. VTI has always been a strong performer for me with my mothers retirement account, which I actively manage. 

4. Building my First Trio Mining Rig:
After months of delaying my mining rig build due to being a wuss, I made a decision to go through with it. Being an entrepreneur is tough, but so long as one does the work to make sure the risks are lower than the upside, it should be followed through. Due to this logic, I went through with it and got started with purchasing my CPU and GPU. I bought 1 of each. I still need the following parts:
  • 2x PNY GTX 1060 6GB GPU Card ($640)
  • 3x PCIE Risers and cables ($34)
  • 1x Gigabyte GA-z270x-D3 Motherboard ($84 MSRP)
  • 1x ethOS ($40)
  • 1x PSU ($99)
  • Cooler fans (DIY Budget build)
  • Rig (DIY Budget)
The following cards were chosen for their electric efficiency, high hash rates (Approximately 15 to 20 MH/s on whattomine, and low costs. So far, with the CPU and GPU, I have already spent $140. Off to a great start!

5. Finally, Using Leverage and Lowering Expenses
I recently had a medical scare with my senior dog having 3 seizures or hearth arrhythmia attacks within close proximity of each other. Due to that, I had to use my credit card purchases for supplements and vet bills. As a result, I had an epiphany for it. With my tax refund check pending at $1700+, I decided to use cash flow to my benefit. Here are my costs that are fixed:

1. Student loans: Lowered monthly cost to $60/month. I have it manually set to 1x a week at $15. This covers both the principle and the interest paid. I pay this weekly because it allows me to slowly chip away at the principle much faster than if I paid it once per month. I have the interest figured at $2.16/day with all of the loans lumped together. 
2. Other student loans: $40/month
3. Car insurance: $48.14/month
4. JiuJitsu: $200/month (changed to credit card with 0% interest rate)
5. Lowered 0% credit card payments to $0 

Using leverage allows me to use money I don't have to get jump started on my mining rig in advance. This way, I can start earning income much faster than if I were to wait for a refund check to come in. I did this because time was of the essence with mining difficulty-essentially meaning mining profits lost. Because I have income coming in from my day job, cloud mining, and etc., I need to go all in on leverage to increase revenue before mining difficulty is lost. Obviously, I am not spending my credit card irrationally--Only for mining parts and essentials such as my dog's medical needs.  In my opinion you can choose the conservative route and build wealth slowly, or use leverage and take advantage of momentum. You have to go all in on either or. Never in between.  I will let you guys know how this works out in Q2's Income Breakdown. Thanks for reading.

6. Bonus Epiphany:
I realized that I have to mix income with both stocks and crypto to make them work for each other. Meaning, I have to take out profits from trading crypto and mining in order to increase my monthly dividends in Robinhood or M1Finance and vice versa.

The plus side about income from stocks is that you can generate the same amount of cash flow with more stability, and not worry too much about maintenance. The drawback is that the capital can depreciate due to equity prices, especially in the current downturn of Q2. So you can have the same amount of monthly income without the headache of mining maintenance.

The plus side about income from mining in Q2 is that you can have more profit per coin and instantly transfer it into cash whenever you want. You are not at the mercy of each company like equities. Also, you can scale operations with the income received from mining. The drawback is the maintenance of the mining rigs and the tax situation for Crypto at the end of 2018. Also, the fact that coin prices are more volatile than stocks.

My short term goal for mining and increasing my dividend income from stocks is to get my monthly income to where I can pay off all current expenses. This while having room to increase both simultaneously.  For right now, my goal is to reach $100 per month in stocks and $100 per month in mining. Eventually I want each to reach $200 per month to where I can start living more comfortably while still scaling operations.

Couple situations I need to work on for Q2:
1. Have a set schedule for posting YouTube videos regularly
2. Start pushing out much higher quality and comfort stretching content (such as live vlogging)
3. Work harder and generate more cashflow to invest in my passive income streams
4. Work on Dividend Raptor clothing brand

If you liked reading my journey towards financial autonomy and personal freedom, please share this with all of your friends. And comment below about how your own journey towards personal freedom is going. If you want, start your passive income journey alongside with me by checking out the Free Income Stream page. Be on the lookout for the Q2 Income Breakdown coming July.

Don't forget to subscribe to my newsletter in order to get weekly stock watchlists. I am building a pipeline for new and unheard of stocks that provide great yields. Click here to sign up.
Disclaimer: Do your own research. All posts are documents of my journey and my thought process.
Increased Expenses & Huge Volatility - Q1 Breakdown (Jan 1 to Apr 1) Increased Expenses & Huge Volatility - Q1 Breakdown (Jan 1 to Apr 1) Reviewed by Dividend Raptor on 1:02 AM Rating: 5

No comments:

Powered by Blogger.