Over the last few days I’ve been exchanging emails with a reader about passive income (note to self – write a post about passive income soon) and I had calculated that last year I earned $2,919 from my house down payment CD’s and Emergency Fund Money Market.
It got me thinking about the amount of interest I’m going to be “loosing” this year because of the interest rate cuts. By the end of the year all of my laddered CD’s will have expired and I will need to renew at a lower interest rate. Last year my CD rates were around 5%, so far I’ve had to renew two of them for around 3% plus my money market has dropped from 4.5% to a measly 2.7%. Doing a few quick calculations I’ve discovered I’m going to make about $1,000 less this year from this passive income.
Ben – listen to Seb he speaks for all of us who were financially responsible. Please don’t punish us for other’s mistakes.