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Posts Tagged ‘Steve Pavlina’

Passive Income – Part Deux!

April 16, 2013 1 comment

Passive Income – Part Deux!

INVISIBLE!
INVISIBLE!

Continuing my blogging catch-up (while sitting backstage at Performance Works on Granville Island during a cue-to-cue for Beggar’s Opera)! Late last August, I decided to undertake a consistently-blogged-about passive income project to help me focus my time toward high up-front effort activities which pay off passively over time (see: here), instead of the usual hours-for-pay model (aka: my minimum wage job). In order to do so, I followed Steve Pavlina’s suggestion and made this declaration:

INVISIBLE!
INVISIBLE!

I will successfully build a new stream of passive income by December 1st, 2012, that generates at least 80$ per month on average, and endures for a minimum of five years, and I will do this in a way that inspires hope and gives value to people anywhere in the world.

INVISIBLE!
INVISIBLE!

563568_508289692551634_957395844_nNot long after I put this desire out in the world – in October, I believe – a family member came to me with a chance to reduce my rent through offering up a quarter of my place to hold product inventory, so that, while this passive income stream will not last for five years, for at least the last couple of months I have been exceeding my passive income financial goal. I find that, surprisingly and delightfully often, if I announce an intention for some goal, my friends/family/acquaintances/coworkers often very soon come to me with opportunities to help achieve what I am aspiring towards. While I am not a believer in the specific ‘Law of Intention’ philosophy, I put great stock into the idea of ‘ask and it will be given to you; seek and you will find, knock and the door will be opened to you.’ While there may be an aspect of asking God for help in this, it isn’t about tapping into some mystical force; instead, it is about believing in the good and kind nature of the people I know, about believing in the spirit of community. I am grateful for all your help.

Faith, Fraud & Minimum Wage

(Photo credit: Wikipedia)

This project does continue in the background, as the storage situation is very temporary. Ultimately, my end goal is to feel financially secure due to my passive income. This may mean that 60% of my daily expenses are covered, as an example. I admittedly don’t expect to achieve this until I am in my 50’s at the earliest.

I have not, probably to my own detriment, been actively pursuing more creative passive income streams. Instead, I have been overfilling my life with minimum wage workshifts, rehearsals, and administrative preparation for fringe festivals this summer. I really should try to take a week off sometime and spend it exclusively on important schemes… but I doubt that will happen voluntarily if opportunities for definite money (workshifts) exist. I do worry for my financial future once my current cheap living situation evaporates in the near future.

One thing I have been doing is researching dividend stocks as a much more potent place to earn, essentially, a slightly more risky but more lucrative form of interest. Certainly a few steps above my 1.2% free savings account. Not that I can make investments at the moment, but I am excited for the opportunity to do so in the future! I am amazed at how excited I am at the idea of making one-time choices to, say, put 100$ away into stocks, in order to have that 100$ earn 5$ a year, every year, for the rest of my life. I really like the idea of one-time sacrifices which lead to continued, constant, secure boosts through the future.

So perhaps it’s time to make a new goal! How about this:

INVISIBLE!
INVISIBLE!

By November 1st, 2013, my passive income streams will equal at least 120$ per month on average, as a mix of interest and creative enterprises, and I will do so in a way that inspires hope and gives value to people anywhere in the world.

INVISIBLE!
INVISIBLE!

Seems ambitious yet possible. And then I’ll keep raising the bar higher as time goes on.

INVISIBLE!
INVISIBLE!

Keep calm and carry on,
Andrew Wade

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An Emerging Artist’s Finances – passive income project part 1

August 4, 2012 1 comment

I am striving to be a financially literate artist.

I want to be able to devote as much of my time and energy as I can toward creating great theatre and penning strong writing. Pesky things like groceries and rent, however, do tend to get in the way. And while I am able to keep my expenses low, and I am currently on my first paying theatre contract, I will still be returning to my part-time Joe job in Vancouver as I search for more performing work. (I admit, I do have an awesome, flexible, Joe job, but it’s still not my end career desire.)

Since graduating last April, I have been able to perform in/stage-manage/direct/write at least 21 different plays or short films, working with brilliant companies ranging from Fighting Chance to the Metro Theatre, and with Festivals ranging from Victoria and Vancouver Fringe festivals to the UFV’s Director’s Festival, to (currently) the Kelowna Summer Theatre Festival. Almost all of these were unpaid opportunities (or break-even ones) that I’ve used to grow as a performer and introduce myself to the Vancouver theatre community. I’ve been able to use my time in this way because I currently live off less than a thousand dollars a month through a mix of careful budgeting and control of expenses. Here’s a sample month’s expenses for me:

  • 200$ : Groceries
  • 300$ : Rent (to live in officespace at the most southern tip of Richmond)
  • 70$ : Professional development (theatre tickets, headshots, etc.)
  • 80$ : Spending money
  • 60$ : Transit
  • ~20$ : Cellphones (pay-as-you-go plans in Vancouver and Victoria)
  • + a portion of yearly budgeted costs for things like bike repair, clothing, dentistry, medical
  • + 10% of earnings to Tithing

Adding it all together, I come up with something called my ‘freedom wage’, which is to say, the amount I need to earn per month, after which I can spend the rest of my time that month doing what I wish (which could include more active-work-for-pay, but doesn’t need to). Let’s somewhat pessimistically put it at 900$. At my current part-time minimum wage job, that amounts to about 12 full-day shifts, or three work days per week.

Cover of "Rich Dad, Poor Dad: What the Ri...Earlier this week I picked up and read a copy of Rich Dad, Poor Dad. While the latter part of the book seems out of date, what with its insistence on the stable nature of the American real estate market (yeah, that worked out well…), but most of the book focuses on the differences between income, expenses, assets and liabilities. As a quick rundown, income is the money you take in, expenses are what you spend each month, assets are things you own that earn you money (i.e. money that makes you more money, such as stocks, bonds, possibly real estate), and liabilities are things you own that cost you money (mortgage, car and boat payments, credit card debt). In the book, Kiyosaki suggests rather simplistically that there are money habits that separate individuals stuck in poverty vs. middle class vs. the rich. Essentially, the poor only have income and expenses – they buy food and shelter and whatnot and that’s all they can do. The middle class, he says, take their income, pay their expenses, and then purchase liabilities with what’s left over, such as a larger house, or a car, or that big screen TV. By contrast, he says the rich pay themselves first, BEFORE even paying expenses (to the point of creditors calling), and put that money in assets – in items that earn them more money.

Polls show distrust of public opinion

(Photo credit: jukebox909)

That then creates a positive feedback loop as the passive or portfolio income from those assets provides more income, which allows for more money to be devoted to purchasing assets, until true wealth (not needing to work anymore based on income from assets) is attained. Which isn’t so radical, really, considering how many advisors suggest putting money into savings FIRST, before paying your bills.

Before I get angry comments, yes, I think he’s being rather arrogant about how easy he thinks it is to reach out of poverty. But I’m still earning more than much of the world, so I’ll consider myself rich enough. Besides, for Kiyosaki, rich is a mindset, not a current financial statement.

At the same time as I opened up this book, I started reading through Steve Pavlina‘s passive income series (which began here), where he’s coaching his readers on how to create a passive income stream. To Pavlina, passive income is NOT about being lazy and not needing to work… it’s about being generous. In ordinary employee work-for-hire situations, you create value once for your employer and/or customer, and that’s it. When earning passive income (income that continues to accrue even when you’re not actively working), you are instead sharing value with many people (say, from royalties from something written or recorded), or with the same person many times (say, with real estate rent).

Okay, long-winded but hopefully informative intro, over. What I’m saying is, I want to try to build that asset column and earn some passive income so I can devote more of my time to creating what excites me.

So I am accepting Pavlina’s challenge, and will be slowly reading through his series, following along, and sharing my journey with you.

I also have a side-goal with this series of blog posts, which is to encourage more conversation about finances and money. For whatever reason, while we live in one of the most affluent countries in the world, there is often a stigma against discussing such things in our society. I’m not sure why. Are we afraid of looking weak when poor? Of bragging when doing well? Are we insecure when compared to the Joneses? Worried about looking like we care too much about money?

Money is a tool to help us achieve our goals and to grant us freedom to pursue what excites us. Let’s talk about what we’re doing to make that happen.

Here is my goal:

I will successfully build a new stream of passive income by December 1st, 2012, that generates at least 80$ per month on average, and endures for a minimum of five years, and I will do this in a way that inspires hope and gives value to people anywhere in the world.

What is 80$? Almost 10% of what I earn each month. One day less I need to work my Joe job each month. Feels doable, but difficult. What’s your goal? Let’s make it happen.

Cheers,
Andrew Wade

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The Lie of ‘Never change who you are.’

July 23, 2012 2 comments

The Lie of ‘Never change who you are.’

Protean Personality

Protean Personality (Photo: FeatheredTar)

One of the core, central beliefs by which I live is this: that all human beings are malleable. That I, and all of us, are capable of change, of growth, and of discovery, of making fundamental shifts in our worldview and in how we relate to others and ourselves. I’m a junkie for self-help books, websites, and audioguides ranging from C. S. Lewis’s Christian conundrums to Marc and Angel’s motivational posts to Morty Lefkoe’s limiting beliefs to Steve Pavlina‘s open discussions on everything from worklife to domination-submission. To anyone with an eye for how a person can improve.

In my own, personal story (elaborated on more substantially here), the single most important moment in my life was a time when I was in church, ten years old, with tear-filled eyes, my head down at my knees. At that time, I said to God, ‘I don’t like who I am. Help me become someone else, someone better.’ After that day, I looked to the people around me and observed what I admired about them, then sought to instill those values within myself. Courage. Humour. Honesty. Openness. Community-mindedness. Counsel. Extroverted exuberance.

When I tell this story to people – my origin story, essentially – the most common reaction I receive is this:

Well, you shouldn’t ever have to change who you are.’

Bullshit.

(If you know me in person, you know it’s exceedingly unusual for me to use such strong language. If you don’t know me and don’t consider this word as ‘strong language’, please replace it with a suitably surprisingly bold word of your choosing.)

Don’t change? Bullshit. I say, change who you are. Constantly. Discover the very core qualities that make you, you, and on a deep, gut level, grok them, understand them, and then decide whether or not you want them as a foundation for who you are. Reevaluate. Over and over again. Everything from how often you smile and laugh, to how you spend your time waiting in grocery line-ups, to what you believe is fundamentally true about human beings, to how you interact with strangers, to what makes you afraid, to how honest you are, to whether or not you’re as good a friend, lover or acquaintance as you could be… constantly identify ways to grow, prune, build, and level. Then do it. Change.

Be the Change

It’s not surprising I entered the world of theatre. Here, I can wear the skins of people with different intentions, worldviews, tempos, and rhythms to my own. Sometimes while exploring a character I’ll find an aspect of them that satiates me on a deep, gut-level – a whole-body grokking – and decide to try to hold onto that aspect for myself. Iago (see here, here, here, and here) helped me explore the intensely gratifying thrill of untethered ambition. As Donald (The Boys In The Band), I discovered the honest love behind unconditional loyalty. As William (William vs The World), I spelunked into the dark world of how a person can use self-delusion to shield oneself from loneliness, and into the desperation that kicks in when those illusions disappear. Malvolio (see here, here, here, and here) taught me how to use heartbreak as a powerful driving force, and performing improv taught me to trust not only my own gut instincts, but also those of whomever with whom I am sharing a moment. Over and over again theatre has helped me continue to shape and mold the very nature of who I am, cutting into the marble, adding slops of wet clay, drilling and firing and smelting and blooming.

One of my other core beliefs is this: I respect anyone who is trying to better themselves, be they an addict, my mother or even a former serial killer. We can all be better than who we are; we are all works in progress, always. That doesn’t mean we are not good, honest, eager, excellent people in the here and now. What it means is that we’re human. Malleable. Full of hope and opportunity.

Whether you want to or not, we all change. It happens. No one remains the exact same person throughout the course of their life, or heck, throughout the course of a year, or a month. What we can do, however, by admitting our protean possibilities, is direct that change for the better, be that through eliminating beliefs that are hindering, through shifting your perspective of yourself and of the world, through adopting new practices and personality goals such as honesty and openness, or through pursuing an innumerable other opportunities to grow, weed, cut, feed, nurture, and breathe.

There are many reasons someone might tell you to never change who you are. Perhaps they’re worried you don’t feel self-worth in who you currently are. Perhaps they worry you’ll trip up somewhere along your personal journey and get lost. Perhaps they’re afraid you’ll become someone other than their expectations of you. Perhaps they worry you’ll leave them behind. Perhaps it’s just their way of saying ‘I love you for who you are now.’ But I would add to each of these that anyone who tells you to never change who you are, refuses to see how amazing-brilliant-marvelous your future self will be.

Keep consciously changing,
Andrew Wade