Welcome to my income report 💰 for January 2019
In January I earned $190 in total, a significant decrease over the previous month.
Hence i didn’t achieve my goal of earning $200 of side income per month on average yet.
Doubling my goal was an ambitious move.
Maybe you consider $200 a chump change, but for me, i have to make a 200% effort to make it.
This is same situation, that full time employees face.
You can’t just tell your boss to double your salary, you have to bring something valuable to the table, mostly your free time a.k.a. more of your life.
Then you will get a promise of a 3% increase 5 months from now.
No. You have to change job. Move to foreign country, get a second job or gamble to double your income.
I am thinking each day about the ways to increase side income and at one point, i almost inclined to try some of the methods posted on Blackhatworld.
But i dismissed that idea away very quickly.
I don’t want to chase quick buck and deceit people.
I want to bring value to this world and get payed for it. I have to be patient and finish my projects.
..is a month of hope.
A year has passed and everyone is curious about what will future brings to the new year.
And the future seems to be always bright, optimistic and full of hope.
Look for example at the stock market. Almost each year during the economic expansion cycle, stocks soars up in January.
It reflects the overall positive mood.
All failures are forgotten, wins are celebrated and everyone starts with the clean slate.
If you believe in Chinese zodiac, year 2019 will be in the sign of a Pig.
An animal representing money and luck.
Let’s hope there will be plenty of both and that 2019 will be as awesome, if not more, as 2018.
💰 Income Breakdown
💰 Saving Accounts
This category groups all interest income earned on money deposits in savings accounts and saving construction plans.
At the end of January, I had 5 saving accounts and 1 construction saving plan in total, a 1 account increase over previous month.
One of the smaller banks introduced a time-limited offer for new clients, who will get a whooping 3% on a pre-defined amount of deposit.
I was on the fence for few weeks, because achieving that bonus rate is tied to active usage of their expensive current account.
But i got a chance to use their current account for free, so I signed.
Nevertheless, bonus interest rate on 4 of my saving accounts will expire in as soon as in 3 months.
After that period, my passive income from saving accounts will drop significantly.
If Czech National Bank won’t increase repo rates again in next 6 months, i will be screwed.
Unfortunately, they didn’t hike interest rates in February, which means, that economy is slowing down and there are concerns we are past the peak of economic cycle.
Retail banks will follow this decision accordingly and there is no chance they will rise interest rates on saving accounts.
This sucks big time. Imagine you just graduated into the world of almost zero interest rates. How can you possibly save for your future?
💰 P2P Lending
This category groups all my income from investing in P2P loans.
At the end of January, i was invested in over 360 loans. Luckily none is in default, yet. One is on the late payment schedule.
I am well on my way is to invest in at least 500 loans by end of 1st quarter 2019.
In 2 months i can reach a point, when capital returned is sufficient to fund new loans without the need of any new deposit.
I just reduce the duration filter for new loans to 12 months and let my P2P bot do its thing.
The curve of annualised rate of return get flatter each month, signalling it’s harder to squeeze out more profit without increasing overall credit and liquidity risk.
As stated last month, now is the time to explore new asset classes such as stocks and crypto.
This is a new category, which groups all my earnings coming from freelancing gigs.
In January, i managed to close my first gig ever on Peopleperhour.com. I was partly lucky, that gig involved in depth knowledge of finance domain, which is my daily bread and butter.
First time i saw the job title, i immediately knew i can close the deal.
The gig was about researching debt finance services provided in UK.
I knew nothing about UK market, but i knew enough about venture debt finance products to convince the buyer, that i am the best for the job.
I still remember well the material i learned for first level of CFA exam. It sure served me well in this case.
Initially, the proposal i sent was way over the buyers’s budget. 500 GBP for the research paper.
As expected, buyer tried to push the price down by narrowing the scope of the job.
It made sense so i agreed on 150 GBP for the paper.
Finally, it took me 3 weeks of negotiating to close the deal.
I had to jump over so many hoops, like answering interview questions or doing sample research on some topic for free.
As a freelancer who is not paid hourly, you have to include this wasted time into the final price.
I spent 2 hours communicating over the mail, 3 hours analysing the scope, 2 hours looking for interview question answers.
It eventually adds up and in the end, i have spent more hours managing the job than actually doing the job.
If i calculate my final hour rate, i earned less than average McDonalds worker.
I knew that and it didn’t matter. It was my first gig and i needed an experience. Moreover i was interested in the topic of venture debt financing myself.
After a week of researching i was half way done with 13 pages of material.
Buyer urged me to send draft as soon as possible, so i sent him my unfinished work.
Unfortunately the draft was probably enough for the buyer to call the quits and i was asked to end this gig for less money.
It was a fair request and i agreed on charging only 75 GBP for 13 pages of debt finance research.
I am happy, that this gig ended sooner.
I realised, that with my limited free time, i can’t force myself to do gigs i am not even remotely interested in.
Next time, i will aim for jobs, that are interesting from the knowledge perspective, or are very well defined from the start so i won’t have to spend hours negotiating the scope.
Below are the jobs, that you should avoid if you want to earn more than average McDonalds worker:
- Data entry jobs that make you type thousand pages per hour for $10 an hour
- Programming jobs, where buyer wants complex automation script for $20
- Programming jobs, where buyers wants complete business website in WordPress for less than $300
- Machine learning tasks doing complex analytics with user interface for $150
- Blockchain application for less than $4000
✅ What can be improved next month?
In February, i will keep hustling on Peopleperhour and ditch other freelancing sites. It’s just not worth it to follow other sites if each proposal is ignored.
It takes 1 minute to read the job description, 5 minutes to analyse the scope and 5 min to write the proposal.
In 1 hour i am able to send only 5 proposals.
I would rather spend that one hour each day on my project, than on chasing low paid gigs, but it is a good way to practice english and who knows.
The ultimate goal is to close long-term client, who is willing to pay reasonable hour rates.
And if my earnings from freelancing exceeds $1000 a month, i might be able to go fully remote.
On the finance side, i will explore the ways to trade US stocks and ETFs.
It has been on my bucket-list for years, but i never had courage, or money to start trading.
💻 Project development
In January i struggled to progress with my secret project. I faced a tough roadblock when dealing with Django REST Framework serialisers.
I spent 1 week trying every possible answer found on Stackoverflow, but with no luck. Eventually i found out it’s actually not possible to nest serialisers, which gets data from raw SQL queries.
I would like to thank my friend Jan Klapuch for support. He is such an expert on Python and Django. Without him, i would still be stuck with WordPress forever.
In February i will focus on finishing basic social network functionality. After that, the app is done and i can start working on mundane things mentioned last month.
- Migrate from SQLite to Postgres SQL
- Learn Django templating syntax and create a static landing page
- Buy cloud hosting and set up a production-grade environment
- Somehow integrate user authentication and registration process into React frontend and Django backend
Besides my secret Django React project, i started a new project with a goal to build Flask React minimum viable product.
Recently, one of my parked domains expired and i made a rule, that i will never renew any parked domains again. Unless i build an app or website for that.
So i have to create something and if it fails, i will sell the domain or let it expire.
Moreover, i always wanted to learn Flask. It is a lightweight web framework based on Python.
With only one method, you can deploy an app live.
No more dealing with models, views, routes, templates and serialisers as you would with Django.
Let’s see if i finish this project or give up midway as usual.
That would be all for this month. See ya in next income report!