Monthly Passive Income Reaches $11,074 as Household Goals Shift

Adjusted passive income reached $11,074 in September, the third month the household has crossed $11,000. Dog boarding had an unusually strong month, while rental property income and dividends continued to provide steadier support. The 12-month average slipped from its recent record, but remained the second highest since tracking began in 2017.

The monthly update also shows how the household’s financial picture fits alongside other priorities: income is below its annual target, a productivity app is taking much of the writer’s attention, and net worth has risen over the year despite a small monthly decline. The figures are estimates and reflect the writer’s own method for counting income from property and retirement savings.

September income: a strong month for dog boarding

The writer previously earned money from three activities with some passive element: dog boarding, a blog and managing a website for a nonprofit. Each took active work, though they could be managed alongside a full-time job. The blog now brings in little, and the nonprofit website retainer is small, so dog boarding accounts for nearly all of this category.

Because dog boarding requires work, the writer counts only half of its income as passive. September was the strongest month of the year, despite the expectation that bookings might ease once school resumed. The report lists August’s dog and website income twice, with two different figures: $4,107.93 and $5,167.40. Its September total uses $5,167.

Rental income is calculated with a different adjustment. The household owns two properties, both with mortgages, and receives about $1,100 a month in rent. One mortgage is expected to be paid off in 2027; the second is a smaller loan with about 15 years remaining. The writer estimates that owning both properties outright would produce around $32,000 a year.

To estimate the household’s share, the method multiplies rent after estimated expenses by the percentage of property equity owned. Expenses include insurance, property taxes, condo fees and estimated maintenance. Equity is calculated against property values shown by Zillow, which the writer considers accurate for these condos.

In September, Zillow estimates rose by $11,000 compared with the previous month, and the household paid down $1,000 in mortgage principal. The reported equity share increased from 85.52% to 85.90%. After estimated expenses, the properties generate $2,980 a month; applying the equity share gives estimated income of $2,560, up $12 from the month before. Since property management takes a few days of work each year, the writer counts 80% of this amount as passive.

Dividend income comes from a simplified estimate rather than a complete record of distributions across every account. The couple has nearly maxed out retirement accounts for about two decades, and the writer estimates what those savings could generate using a 2.5% dividend yield. The article gives HDV as an example of a high-dividend exchange-traded fund, with a stated yield of 3.34%. The writer also receives monthly profit-sharing payments from a small ownership stake in a private company; those payments function like dividends, though they are taxed differently.

Estimated dividend income fell from $6,504 in August to $6,443 in September as markets dipped slightly. The writer counts all of this category as passive, so no further adjustment is made.

What the $11,074 total includes

The monthly calculation applies a 50% adjustment to dog and related income, an 80% adjustment to rental income, and no reduction to dividends:

• Dog and related income: $5,167, counted as $2,583.
• Rental income: $2,560, counted as $2,048.
• Dividends: $6,443, counted in full.

Together, those figures produce adjusted passive income of $11,074. Dog boarding did much of the work this month, but the writer sees property and market-based income as the more passive parts of the mix.

A chart tracks monthly adjusted income from 2017 onward, alongside a 12-month average designed to smooth out seasonal swings in dog boarding. The writer focuses more on that average. September was one of only a few months this year without a new record: the average was still the second highest on record, above July’s level but below August’s.

The household’s net worth declined 0.83% during the month but was up 9.30% for the year. The writer’s spouse continues to work and is considering retirement again. Her 27 years of high-level military service have earned her a vested pension that the writer says would roughly double the household’s passive income. The writer also has other earnings, but leaves them out because they require active work.

Income goals and a new app project

The writer set an annual personal income goal of $80,000, but earnings have trended down over several years: from $98,000 to $88,000, then $81,000. Last year’s total was $80,593. At age 50, with substantial assets in place, the writer feels less pressure to maximize earnings and sees income as partly tied to self-worth.

August income was $7,167, bringing the year-to-date figure to $47,357. At that pace, the writer expects to finish near $63,000, short of the goal, while describing the progress as moving in the right direction.

One business goal is to improve the dog boarding operation and its website. New branded shirts and coats arrived in September, which the writer hopes may help attract local customers while out and about.

Another goal, “AI Everything,” has become a major focus. The writer is making progress on a productivity app first described the previous July. With help from AI tools, a browser-based version now runs from a local hard drive. The writer uses it to plan each day, although a few friends and family members have shown little interest, perhaps because their routines differ.

The next challenge is putting the app online. That means rebuilding parts of it to support hosting and database connections. The writer hopes the existing code and detailed specifications will help AI tools recreate the app once that underlying setup is ready.

Health tracking: strength gains, but the measure is falling

The writer turned 50 earlier in the year and is continuing health goals set out in a separate post. The main body composition target uses a personal formula: lean mass minus twice fat mass. It rewards adding lean mass and penalizes weight gain that comes largely from fat.

August’s average weight was 179 pounds, with average body fat at 25.3%, the highest reading of the year. The formula produced a score of 43.1, below the target of 60. The writer estimates that reaching the target would mean roughly 169 pounds and 21.5% body fat.

That result came despite joining Planet Fitness on the first of the month and attending 15 times. The writer followed the gym’s 30-minute express circuit and felt stronger by month’s end, but that improvement did not show up on the scale. For comparison, the formula averaged 55.9 in 2025 and began that year at 52.6. The writer reports another gym membership in September and four visits over eight days, a small early sample.

A separate goal assigned weekly points for diet and exercise, as well as brain games such as Duolingo, Wordle, Connections and Strands. The writer stopped tracking those scores because other commitments took priority, but expects the new app may automate them and make it easier to restart next year.

Blood pressure averaged 121/77 in the previous month, close to the writer’s personal target of 115/75. Tracking has moved from a spreadsheet with daily entries to a monitor that records readings in an app. There were no doctor appointments during the month, and the writer did no longevity research toward a 40-hour annual goal.

Home, travel and family plans

Several hobbies remain on hold while the app takes up time. The 3D printer gathered dust again, and the writer has not practiced a modern song on the ukulele.

At home, the garage became less organized during a basement renovation. Summer items, including hammocks and chairs, were also brought inside, and the writer expects the space may look cluttered for another five to six months.

The family has been planning a trip to Japan for March of the following year. As they considered booking flights, the writer’s spouse realized that March is her month to be on call for deployment in case of a hurricane or similar event. She is trying to trade months with someone else, but the writer is doubtful the plan will work out. Cherry blossom season makes accommodation competitive, and the family had already missed the chance to book for the same school break the previous year.

The children are back at school. After earning black belts, both became bored with karate because the anticipated advanced training did not materialize. Their instructor suggested Krav Maga, which is mostly attended by adults but includes a few other teenagers with black belts.

The older child, now 14, enjoys the sparring and studying opponents’ habits. The younger child, 12, likes it less and attends once a week because robotics takes place at the same time. Since it is the only sport he does besides skiing, the family plans to keep him involved.

Money management on autopilot

The writer’s attention is mostly on building the productivity app, leaving personal finance in the background. That feels manageable because much of the household’s money routine runs automatically. The monthly figures still offer a useful check: strong income from dog boarding lifted the total, while property equity, dividends and a rising year-to-date net worth show how several different sources contribute to the household’s financial picture.