I am looking to build on our passive income, currently this brings into our home around £45 per month.
So as part of our 10 step investment plan, read about it here, we are concentrating putting more money into income streams that achieve passive income such as share dividends, property investments (rent), and peer to peer lending (returns a monthly interest).
So what is Passive Income?
Passive income is an income from a source that once bought, as in shares; you do not need to do any further work, the dividends are paid regardless.
So how do you start building passive income?
Start by looking at what funds you has available in your budget. Cut out all unnecessary bills i.e. gym membership you don’t use or magazine subscriptions you are no longer interested in. Reduce your outgoings further by using comparison sites for cheaper insurance and fuel costs.
Use these funds and any more you can make from side hustles like surveys, click & casual sites to invest into passive income such as
The Stock market where you can buy stocks and shares for dividends and also, hopefully, longterm growth on the stock value. One book I would recommend that you read before putting money in shares would be The Naked Trader by Robbie Burns
A Business could be through crowd funding site like Funding Circle, I recently made my first deposit into this site so will update on my thoughts later.
Property, again if you do not have the funds or income for buy-to-let then you could invest in property by crowd funding companies I have used are Property Moose (invest from £10) and Property Partner.
To reduce you risk it is always worth investing in more than one area.
Keep track of your net worth here is our report 1st September 2017
When your passive income equals or exceeds your outgoings then you can be classed as independently wealthy. I have a way to go before I can class myself as this but each day I work on my PEP (Personal Earning Plan) and on Pay, Save and Invest brings being Independently wealthy closer.
What methods are you using to bring in Passive Income? Please comment below.