Usually I would focus on my $1000 at a time. Investing it immediately from the moment my account hit the $1000 balance. However recently I felt like a challenge and chose to sit tight and see if I could wait a little bit longer and maybe invest more. I had about $3,000 owing to me from weekend projects, my birthday money from my parents, I had some AirBnb bookings and I was really in the routine of saving my lunch money. So knowing that new money was on it’s way, I decided to push back for a little bit.
I emailed all the people who owed me money. I reminded that how much they owed me and how many days the debt was out standing as well as politely reminding them that they originally promised it would be paid a while ago. Whilst I got a list of excuses or radio silence, after about 10 days, the money was starting to show up in my account. These deposits went for about 10 days as well, but eventually I was paid!
This gave me a total of $5,000 to invest, plus I still have just over $200 already in The $1000 Project account, ready to grow to $1000. The benefit of investing this larger amount of $5,000 rather than $1,000 was that it saved me approximately $72. Each trade costs me just over $18, so 5 brokerage fees was cut down to 1 brokerage fee.
This isn’t something I will do again, as I prefer the regular buzz of investing regularly and $1000 for me is reasonably achievable to save but it was a nice feeling seeing my portfolio increase in value and that estimated passive income grow. The $5,000 investment represents an estimated passive income of approximately $175 p.a. (growing slowly overtime as I purchased Vanguard ETF VEU). Which brings my total estimated passive income for The $1000 Project portfolio to approximately $4,060 p.a.! 58% of the way towards my $7,000 p.a. passive income goal.
Bring on my next $1000, I am feeling so motivated!
Canna Campbell is the founder and director of SASS Financial Services, a boutique financial planning firm. She is a Channel 9 Financial Commentator, founder of financial media platform SugarMamma.TV and best selling author of The $1000 Project and Mindful Money.