In my first blog post of the year, I said that Q4 2023 passive income should be weaker.
This is because OCBC and UOB only pay dividends in the 2nd and 3rd quarters.
So, losing these important contributors, it makes sense to expect lower passive income numbers for me in the fourth quarter of 2023.
I also expected Q4 2023 passive income to be lower year-over-year.
This is because my investments in REITs and real estate developers generated less income for me in 2023 compared to the previous year.
High interest rates are quite challenging for some entities.
Fortunately, DBS pays dividends quarterly.
Being another major investment in my portfolio, hopefully this would provide some cushion.
This is especially so when DBS increased its dividend per share not long ago.
My persistence in building and strengthening a scale of accounts in a higher yield environment should also help.
All this was going through my head.
So, how did things turn out?
The total passive income generated by my investments in Q4 2023 was:
$24,849.44
That’s about 2% lower, year-over-year.
It was $25,331.81 in 2022Q4.
Hmm, the drop wasn’t unexpected.
However, as the title says, I smiled because it wasn’t too bad.
Down 2% on a relatively smaller amount.
Not too damaging.
Thanks to strong Q2 and Q3 numbers, the full year 2023 saw an improvement.
Besides, the second and third quarters saw larger percentage gains in relatively larger numbers.
All things considered, pretty decent.
For the full year 2023 there was a 12% increase in income generated by my investment portfolio, year over year.
Total amount:
$231,495.19
That compares to $205,999.73 for the full year 2022.
For new readers of my blog, this is probably very impressive.
However, readers who have followed my blog for many years will know that blog posts like this one are more about inspiring than impressing.
If AK can do it, so can you!
I’m not just saying that.
I mean it.
It is about existence prudent with money.
It’s about keeping our needs simple and our wants few.
It is about existence patient and get rich slowly.
It is about existence pragmatic and remaining invested in bona fide income producing assets.
If it all sounds very boring, it is.
It’s all about staying grounded and marching towards that pot of gold we know is waiting to be unearthed.
Unearth?
That sounds like work.
Yes it is.
There is no such thing as a free lunch in this world.
It’s not about what could be, but what we know is.
So what is my strategy for 2024?
More of the same, really.
I expect that my investment portfolio will continue to generate income for me this year, barring catastrophic events.
If another pandemic breaks out or if war occurs on a global scale, expect income generation to slow or stop.
I can only hope that sanity prevails and that more people in power are willing and able to avoid war on a larger scale.
War is completely preventable unlike pandemics.
Unfortunately, many people are selfish and narrow minded.
When placed in positions of power, they could then influence the gullible to do the unthinkable.
This is not a problem exclusive to less developed countries or less politically stable regions of the world, of course.
I take some time to talk to myself about this because compared to the financial challenges, this is a bigger problem.
In terms of economic challenges, high inflation has been tamed or so it seems.
Expectations are that interest rates will begin to decline sometime this year, and there are some experts who believe the Fed will cut rates below 3% to ensure a soft landing.
This is good news for SOEs, especially those that are highly leveraged as well as those that have much of their debt at floating rates.
For banks, that would mean dampening profits as rapid rate hikes end a strong tailwind.
However, banks have proven time and time again that they have been able to grow their profits over time.
So, staying invested is what I’m going to do.
Before I end this blog post, I will remind myself of the following.
“There will come a day when my passive income generated will exceed my income doing what I do.
“If I’ve always been wise with money, this is probably the day I’ll be financially free.
“That’s when I no longer have to work for money.”
No need to dig up anymore.
So trust me when I say this.
If AK can do it, so can you!
