This $1000 came from a freelancing job that I was able to work on over my weekend. Normally I wouldn’t be paid as much as $1000 so when the opportunity came up, I accepted it with open arms. Plus I was able to do this job from the convenience of my laptop, which I worked on whilst away for the weekend. It sounds a little silly, working whilst having a weekend away, but there was something about changing my working environment that made this job really enjoyable to work on. It even felt funny being paid for the job as I enjoyed doing it so much, which made me realise one of my own financial blocks, which is around my sense of worth and incorrect belief that work is supposed to feel painful and hard…something for me to work on and clear!
Anyway, these funds have since been invested, but this time into a new ETF. The Vanguard All World – ex USA ETF…this EFT is a well diversified one with investments into major companies around the world. The ongoing fees charged by Vanguard are extremely competitive, around 0.11% p.a. Also, I chose this ETF as I already own the Vanguard USA ETF in The $1000 Project portfolio, so this adds some valuable diversification and helps reduce the investment risk. However being internationally based, the dividends aren’t quite as strong as what Australian companies pay, with the estimated dividend around 3.5% p.a. Which means my estimated passive income is around $3,885 p.a. (so 55.5% of the way towards my goal). Nonetheless, there may be more long term growth benefits from this ETF, which means that my long term passive income may increase as the value of the ETF grows. This is where the yield trap can fool us if we aren’t careful!
I have already hit the ground running and am working on my next $1000, so if you haven’t already, make sure that you share with me how you are going on your own $1000 Project!
Canna Campbell is the founder and director of SASS Financial Services, a boutique financial planning firm. She is Channel 9’s exclusive ‘money expert’, founder of financial media platform SugarMamma.TV and best selling author of The $1000 Project and Mindful Money.