Online Business Passive Income Passive Income Australia/NZ Plan Review

Passive Income: End of the Quarter Review!

Well a little late but so long as I get this out before the end of April! In fact the last time I did one of these was 6 month’s ago! Anyway its the end of the tax year here so I had to do some tax stuff first. First off a huge tip for any of you who aspire to wander around the world logging in occasionally to make a little more passive income online! Sort out your tax status and try to be tax resident in only one country! After several years of doing tax returns in two countries I am significantly over it!

Well a little late but so long as I get this out before the end of April! In fact the last time I did one of these was 6 month’s ago!  Anyway its the end of the tax year here so I had to do some tax stuff first.  First off a huge  tip for any of you who aspire to wander around the world logging in occasionally to make a little more passive income online!  Sort out your tax status and try to be tax resident in only one country! After several years of doing tax returns in two countries I am significantly over it!

Dancing Rumba on my 48th Birthday April 2010, Nelson, New Zealand

Now I did indeed write down my Passive Income Goals for 2010 so perhaps I should see whether I am quarter of the way there yet!

After all I only had three goals:

  • US$5000/month – $3000 of which would be passive (e.g. affiliates) income;
  • develop a website trading business;
  • develop my own products.

OK – so what have I actually achieved in the first 3 months of 2010?

  • Total income of around US$3000/month – of which about 1/3 is passive;;
  • lost the enthusiasm for the website  trading business – frankly it would be just as easy to sell niche sites on The Keyword Academy forums where there  seems to be a constant demand;
  • the whole own product thing hasn’t inspired me yet either – though I am thinking about doing some Frugal Theme skins – possibly just to give away for people who sign up with my affiliate!

So I’m not too unhappy with the way my actual gross revenue is going – though I am now starting to track my expenses as well to make sure they don’t start creeping up.

Tracking my Business Growth and New Zealand Taxes

I am still using the simple spreadsheet I described in my October post – for the end of the tax year I added up the income over the last year , converted to NZ dollars, and came up with a figure which strongly suggested I should start worrying about provisional tax!  For the record I have no understanding of people who whinge about paying tax – I am bloody delighted to be paying  tax – it means I am making some money!

Mind you my next step was to register for GST to minimize the tax I was paying by being able to claim 12.5%   (soon to be 15%), discount on anything I  buy in New Zealand. Then I bought a rather nice 21″ monitor!

I don’t know how they do it in your country, but in New Zealand (if your business is small enough) you get to choose whether to pay provisional (estimated) tax on what you have earned or what you have been paid. Given that most affiliate programs pay sometimes  months in arrears I chose a payments basis – which means I now have to run my accounting on a cash (payments) basis for my accountant – though I still will use the actual earning figures for my planning and personal gratification!

The irony of course is that people who skip paying taxes are also skipping the ability to legitimately deduct their expenses – even expenses they have anyways like rent and power and Internet!

What I am Planning for the Next Quarter

I am trying to get my passive income up a LOT for the second half of this year. My partner is not very happy with his current contract – I’d like to replace his contract income  and give him the option of not working. That would be the equivalent of an extra US$7500 /month that’s a lot for such a short time frame.

More realistic might be to make sure I can cover our total household expenses – I’ve been paying 50% since the beginning of the year – so to pay the lot would be around another US$2500/month – bringing my total monthly income to US$5500 – that’s a bit more realistic I think. So long as the US / NZ dollar exchange rate stays in my favour.

A Note About the Photos

I like taking photos – and I particularly like my new fancy camera,  but I don’t really want a separate photo blog like  Sire’s Scenic Adelaide or Todd’s Picture a Day blog about Iraq, weather and kids.

So I decided my long-suffering readers needed to see them, after all proper professional type blogs always have very sophisticated and shiny photos  which mainly look like they came from the same stock photo source. Mine are at least unique!   After all don’t you get tired of all the perfect  I think some of my photos should be forced upon my loyal readers – so – I started adding them in – around the time I moved back to New Zealand.

Sometimes the photos are a play on words, sometimes they’re allegorical, sometimes they’re random – you get to figure it out!  If I actually have real screen shots to illustrate a point I’ll use those. But most of the time waffling on about passive income online isn’t  that much of visual topic – so hence – the completely irrelevant photos!

Having just added all the thumbnails back in after swapping themes – it stuck me that not a lot of passive income blogs feature photos of Wellington and Australia – so you might have been wondering!

What About You ?

Its not just slackness that has meant I haven’t talked much about my income recently – when I was making  under $200/month from Adsense and Affiliates I wasn’t too worried about sharing that fact. Now I was a little worried that I sound a little arrogant talking about it – but I know the frustration of many beginners who wonder if they will ever see any believable income figures – which are over sabout $10/day – the level at which many bloggers quit at.

39 replies on “Passive Income: End of the Quarter Review!”

Thanks for the update, Lissie. And I love your photos. The ones of the costumed characters at the soccer festival in NZ while the Third Tribe people were going bonkers on you were delightfully ironic. And your shoes in the latest dance shot are To Die For.

If you give away theme skins, you get free backlinks everytime someone uses one. Sounds like a great idea to me.

Like you, I don’t mind paying taxes in the least. I only wish that business taxes less complex here in the US (and NZ sounds even worse). I never dread tax time for my personal taxes, but business taxes are an annual trauma. I just found a good accountant, which has helped immensely–if you’re a US corporation or LLC, a CPA or EA to do your taxes is a must.

LOL Lorecee -woops – not soccer – Rugby 7’s (you could get banned at the border for that mistake)! But yeah I’ve always disliked the tribal aspects of organised sport …

The shoes are dirt cheap Chinese knock offs’ – quite comfortable as well!

Nah NZ business tax was listed as the 2nd easiest to comply with in the world. Pretty much its the same whether you are a sole trader or a company – you just report the income and make the actual deductions for what you actually spent producing it. There are very few deducstions for things like laundry and low earning spouses (as in Australia) – so its way easier.

Hi Lissie, congratulations to your success! As for paying taxes, I have to work extra hard this year in order to be able to pay my tax accountant, as there is no way that I could find my way around the Czech tax system, even if I would speak Czech -which I don’t. So, additionally to your tip of being only “tax resident” in one country, I would add “and make sure you speak the language of that country” 😉 SY

Good point SY – I so couldn’t deal with doing taxes in a different language!

Nor could I, that was the reason I hired a tax accountant for the first time in my life 😉 SY

Bit behind on my goals but I think by watching the TKA videos and asking questions, I finally “get it”. As such, I won;t have any goals for 2010, just to build my niche site foundations and wait til 2011 to really set some goals.

Thats a good idea “make money with Adsense” – I don’t think you should do goals until you have really learned what you are doing so about a year in makes sense

Lis: Well I have some short term goals, but totally agree with you. TKA has helped me tremendously in getting up and running.

Hospitalera: It makes me smile every time I see it 😉

Sounds like you are making fantastic progress towards your goals Lis!You are definitely going to hit your 2010 goals long before the year ends 😀

Thanks Tom – your comment was hiding in the Askimet sin bin hence the delay in approving it

You have just inspired me to work harder! LOL I have goals set for this year and have to say that I am not doing so hot on them. In fact I even cut my mid-year monetary goal in half and still may not reach it. My biggest factor is finding time to work. I usually only work after when my two little ones are sleeping, which means that I don’t get much sleep if I work too much.

I do love hearing what other people do make though because it really does motivate to spend more time more wisely… that’s probably my cue to start working on my sites huh?
Good luck on your goals!

Hi Tiffany – yeah judging kids with this stuff must be hard – I can’t imagine the distraction – I’ve been baby sitting a 6month-old Terrier for the last few days and he was distracting enough!

Hi Lissie,

Thanks for the update, it’s always inspiring to hear from someone who is doing well with this whole internet marketing game. You deserve all the success that comes your way.

As for the pictures … I like em … lol, but then again, I don’t think I’d be able to even write anything these days if I didn’t have a picture to inspire me 😉

LOL be interesting to see how you go now you are back home – photos are really easy to take and talk about when you are somewhere exotic!

Hey Lissie,

I did my taxes and after dealing with both federal and state (for the US – I don’t file in the Philippines since I have no income generated here) — I got a refund of about $1000. I was surprised.

Interesting update – you’re doing well. My own are increasing steadily, although I’m not at your level yet. I hope to have replaced my current freelance income with passive earnings by the end of the year.

I don’t mind doing/paying taxes either, although I’m far from being in the top tax bracket yet. I’m also only registered as self-employed, rather than as a limited company, so they’re very simple to do. Guess I’ll have to get an accountant one day though!

I like the photos too – they add a nice personal touch.

BTW – the last paragraph of your post seems to be cut off half way through?

Well our budget is due next month and they are talking about dropping the top tax bracket which will be good for my man but not effect me!

I like the photos too. Even nicked the idea for a bit of color myself. Too many making money blogs have nothing but big affiliate banners (yawn).

Congrats on the earnings Lis, the only way is up. I bet hubby will be a happy man when his work is totally optional.

Lis, the passive earnings you mention. Do this mean money from affiliates that have signed up to the Academy and the like? i.e no further work at all on your part, i.e no backlinks or blog posts etc? I assume it does and that kind of money is definitely something I need to begin earning myself.

Hi Dave – I thought guys were supposed to have a problem with women keeping them – not in mine’s case! That’s right I make money when people sign up with The Keyword Academy, Frugal, Hostgator, and some other MMO products – also I keep on selling stuff on Amazon and eBay from hubs I did years ago and have never touched again. The trick is that you have to do the work originally and then (hopefully) the money will keep flowing! Of course stuff that pays ongoing commissions like TKA are awesome because you end up with a consistent income – why do you thin membership sites are so very popular with the A-listers?

Yep, I never mind paying taxes at all. I’ve had too many lean years where I owed none. In the US, especially, although you would never know it to hear the whinging, we are truly blessed. Only one other country, poor bankrupt little Iceland has a lower personal tax rate, and business taxes are way easier than almost any country on earth as well.

And since I picked a good country to retire to, my country of residence ads no complications to the mix .. all income from “outside” the Philippines is not taxable, I don’t even have to file a return.

I’m not (yet) equaling your online income, but I intend to improve on it this year. One thing I find useful is, forget and the ‘thousands per month’, it’s to being as goal and too easy to give up on. break the monthly bills down to segments of a few dollars each … cell phone bill, electric bill, etc., and concentrate on a niche site or two that pays each one .. hands off. Sometime you’ll get to paying all the monthly pieces, but in the meantime, you’ll have successes more frequently and you’ll be automatically diversified so that no one mistake will crumble the entire house of cards.

Keep on keeping on, you are doing good work and I enjoy reading about it.

That’s a good point of view Dave – I rather suspect your monthly bills are significantly less than mine! Thanks for the complement re the blog – wasted 1/2 of Sunday playing with the front page layout – tragic!

Hey Liz, thanks for the link to my Scenic Adelaide blog, I must say that was a pleasant surprise. 🙂

Hitting $3000 a month, although a tad short of your projected goal, is still a tidy amount. Knowing you it won’t be long before you actually pass your goals.

My pleasure Srie – yeah no worries about the income – its going one way – up (ish)!


You may not be where you feel you should be with your goals, but if you are making progress in the right direction, I wouldn’t be extremely disappointed. Personally, I think you are probably about right where you should be if you want to be at $5000/$3000 at the end of the year.

Keep the pictures coming. I dislike the fact that everyone says you have to keep your pictures and posts relevant on your blog. It’s your blog, you can do what you want.


LOL B yup I was just being polite explaining – do you think I was actually gonna change if you guys had said you hated it !

Hi Lis,
I just found your site/blog. I just want to say it is very nice and thank you for posting lots of helpful information!

I still have a lot to read though! 😉

Hi Kelly and welcome – yeah there’s a few words around here sorry about that :–)

Great to hear the update, Lissie! I’m finding I’m not nearly where I want to be, but I’m hitting my stride when I’m seeing consistent monthly jumps in income. $50-80 more a month doesn’t seem like much, but after a few months in a row when it sticks, it definitely starts adding up. Cheers!

Hi Shane – good to here its working for you! Yup it does take a while but it works if you stay the course

Hi Lis,
great to hear about such a solid set of results. I’ve got a long way to go myself, but it is really encouraging to see other people succeeding online.

All the best,

It sounds like this system is working out well for you. I’m glad you have a husband who doesn’t mind you keeping you guys afloat. It’s fun to see you two dancing the Rumba, too. Do you do that competatively?

Well if we didn’t dance competitively we would probably about 1/2 our weekly expenses! On the other hand our alcohol bill may go up to match!

These are some very good figures. Hopefully I will earn this month what you earn in a day ($100) although with a bit of work I can potentially see my earnings pushing $200. Not a large amount but then again not to be sniffed at!

Also love the idea of inserting random photos in – I reckon I could do that now I have a flashy new phone with built in camera!

Hello – always good to see others in my ‘niche’ doing well – it provides me motivation. Do you mind me asking where your passive income comes from? Article writing? I am at a measly $100 a month – trying to get up to $1000 and then $2000. I know it can be done, but it seems I will never get there! Thanks for the motivation and honesty!

If you mean article writing as in being paid to write articles for someone else – no I don’t count that as passive income – I call that bloody hard work! By passive I mean income I get from Adsense, eBay, Amazon and other affiliates on sites and hubpages – the longer version of how is here

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