Last week I spent some time traveling for work and realized I would like to be a bit more location independent. Sitting on a restaurant patio having lunch while reading a book, I realized that to live more like this I will need to adjust my investments and add some more capital to increase my cash flows. My base independent number will allow me to travel twice a year but if I wanted extended time in multiple locations it will only be in low cost areas. Once I move into mid priced region, my cash burn rate will be a bit higher than I would like so I am now working on a plan to increase my cash flows from base FI investments to make up the difference.
To increase my income stream, I am working on a number of investment options. The first one will be to add another income property to my portfolio. At present I have two units that are rented short term with pretty steady cash flows. If I am able to acquire a third unit using the same parameters as the other two units, the cash flows after cost will be able to increase my base FI income stream. I am doing some research now on this and hopefully I can have a new income property in my portfolio by the end of 2017 or early 2018.
I will also need to increase my dividend income. Presently I have my finances structured to earn 40% of my annual expenses from dividend income. To keep this proportionate with my increased income requirement, I will need to increase the amount of capital I have allocated to this section of the portfolio. This will mean either working a bit longer to save up more cash for investments or pursuing a business idea to generate additional investment capital. I am seriously thinking a combination of both strategies will be best for this.
My plan will always be a work in progress in my book and as things change I will adjust and tweak to take into account these changes. This is one of the reasons I always have to keep reminding myself FI is a journey not a destination. Take the time to enjoy all the things along the way and don’t put off too much for later as sometimes you never get that second chance. Life is dynamic and we as humans are built with the ability to adapt to changes as they come along so don’t be afraid to make changes when needed. They have a way of making life more interesting.
Have you made any changes to previous plans? How have they worked for you?