Passive Income Achieved for the month of September, 2008 - $125

Alright, so this is a low start. But it is a start nonetheless. The $125 all comes form a Fidelity International Income fund – FNMIX - Fidelity New Markets Income and, unhappily, this is the only one of our approximate 10 funds that has not taken a bath during the “meltdown.”

My initial goal is to create $1000 a month in passive income by January 1st, 2009. Yes, three months seems like a very short time to increase passive income by $875, but we have a large cache of capital (a swiftly, dwindling cache of capital) that can be reinvested to generate passive cash flow as it is currently invested for capital gains. Also, I will double check – there might be more dividends here that I have not reported on.

Here’s my plan:

• Generate $175 a month cash flow from 3 high, reliable dividend yielding stocks. I have a screen to id high yielders with a good fundamental analysis rating. I will then perform a Lynchese fundamental analysis on the top 5 and also run them through a dividends part 2 screening. Preferrably, these guys will be option able.
  
• I will generate an additional $175 in dividend income from three mutual fund income funds - $125 has already been accounted for.
  
• I will generate $200 a month by writing covered call options against the individual stocks. Although this is not 100% passive, it surely does not require 40 hrs per week.
  
• I will generate $100 a month from a piece of investment rental property.
  
• I will generate $200 a month from website affiliate ads and online revenues – Amazon, Adsense, Linkshare, and Barnes.
  
• The last $150 will come from either a dividend stock, rental property or increased online revenue – to be determined.
  

This will give me a monthly, passive cash flow figure of $1000. I will then go on to create $2000 a month in passive cash flow by July 4th, 2008 – thus exiting the rat race and go on to create $3000 a month by December 25th, 2008 thus solidifying the exit.