Benefits of Passive Income

Jessil Serna — Tue, 12 Feb 2019 22:05:32 +0000

Going into the details of why passive income is important without making clear the meaning can be pretty confusing for some people, so I am going to make it clear to you the meaning of passive income before talking about its benefits. What Is Passive Income? Passive income is that income that you receive without putting much effort, most times it requires very much lesser commitment, requirement and also maintenance. What are we saying here? The big factor hiding behind, commitment, maintenance and requirements is TIME. Unlike active income where if you don’t invest your time in what you are doing, you may end up running out of cash, passive income demands lesser time with high yield. An active income earner does not earn if he or she does not work, so for any reason you have an accident, or incapacitated in anyway, then your cash flow also stops. Sometimes too, you may end up not earning for life if it is a severe case. Let’s say an athlete, or a contractor or a builder, who depend on their limbs for work and then you lose them, how then can you continue to independently sustain your livelihood. Ok enough of the bad bad stories. Creating a passive income however is not as easy as you think, well that not the topic we are treating today, so let us dive into our points on why you need to have a passive income. It reduces your stress, anxiety and fear of the future Most anxiety and stress cases come from inability to fend for your basic needs or extra wants an upon that work in and out. There is always this feeling of hopelessness especially when you think about repeating the same process for a lifetime, there is a saying “the worst madness is repeating a process and still expect different results” you wake up every day and rush to your work place, do almost the same thing, sometimes you get promoted or a freeday, or a leave of vacation. Funny enough, our problems and responsibilities keep increasing and the old ones keep repeating. From student, to bachelor or spinster, then to family and children responsibilities, while the bills keep adding and the stomach keeps rumbling. Hence, we just have few moments to enjoy what we have because we are tied up with “if I go for vacation with my friends and skip work, I’ll stay hungry if I get home”. There is no doubt that having passive income takes you far away from such stress and fear of the future. Giving you time to make newer aspirations and also rekindle your hopes. More time to do what you love and not what pays the bills We have so many passionate things we want to do, like skating in all the parks in the whole world lol. Most of the things we are passionate about cannot provide us with the income we need to sustain our lives. Passive income however allows you to do all you love while still earning and being able to be free of debts. Passive income most of the times too outpaces your debts, which gives you a project on starting or involving yourself in projects that you love. Additional protection If you work in a conventional profession, you only receive salary if you work regularly. If you do not want to work for a few weeks beyond your agreed days off, your cash flow will dry up. So in the end, you sell a part of your lifetime for money and, as the saying goes, you are in the “hamster wheel”. You can make a lot of money this way, for example, as a manager in a large company, but the principle always works in the same way. You exchange your lifetime for money. So most of us drive a huge risk here. When investing you always value high diversification and security, why put everything on one card with only one income stream? Although I enjoy working in my job, I always look for ways to increase my residual income and boost my extra earnings, so that I get less hard on the case, or more money on the other hand. Optimally so much that, for example, the loss of my job financially does not hit me at all. About the use of the extra money from your extra money you need, of course, decide for yourself, but it is important that you build yourself a passive income. So the income, which continues to flow even when your active income runs dry, This flow of money goes on for 24 hours, even when you’re sleeping while lying on the beach on vacation, or in the evening in your armchair with a cozy book and a hot cup of tea. You can build a passive additional income on a part-time basis, the possibilities are manifold. My way is mainly the passive investment in the world economy through stocks and P2P personal loans. Basically, this kind of passive income only requires a high savings rate, good investments and a decent return. Once the passive income stream has been strong and set in motion for years, it usually runs by itself and it does not actually require any additional capital to take care of a continuation of the investment. Extra income to fulfill wishes You have big wishes that you want to fulfill? Would you like to see the Maldives, drive a car which is too big for your salary? Again, you can use the passive income. As mentioned above, you decide for yourself how to use your passive income. As long as you do not need it for hedging and it’s just extra money, you can of course fulfill your wishes with it. I also use part of my passive income for this. I’m a big travel fan, because I think there’s nothing in the world that’s more relevant to us personally than impressions from foreign countries. These will last a lifetime. Going out on vacations and grabbing that moment of your life that you can never forget So use your extra income to reward you and fulfill your wishes. Passive additional earnings as old-age provision I think you know by now that you have to build your own fortune in addition to your state pension, in order to have a decent standard of living in old age. As we grow older, our financial reserves must also last longer and longer. According to Statista.com, the monthly gross pension in 2015 is 1314 euros per month and has to be enough for deductions for the rest of your life So the question is, how do you meaningfully protect yourself in old age? Personally, I’m not a fan of pension plans over insurers and fund companies, which I do not have under my own control and for which I have to pay some horrendous fees. Although there are often only a few percent discount on management fees, etc., you will end up missing huge sums of money. Conclusion To supplement your monthly pension without having to work in a supermarket at the age of 70 or putting a lot of unnecessary money into private insurers, all you have to do is set up a passive income, which we would talk about subsequently.

The post Benefits of Passive Income appeared first on Jessil Serna.

Why You NEED Other Sources of Income

Jessil Serna — Tue, 06 Nov 2018 00:46:21 +0000

In our world today, one minimum wage job simply won’t be enough for most people. And so everybody needs to realize that there is always enough time to do everything. Here’s something that might help you decide why you need a second source on income and that you can. We All Have 24 hours in a day 24 hours a day is 168 hours a week. How are you spending your time? A regular full-time job takes about 35-40 hours a week. What do you do with the remaining 128 hours? Are you keeping up with the math? We will be talking about weekly timelines in hours. IF you spend 40 hours at your full-time job and 56 hours for sleep (8 hours a day times 7 days a week), that is only 96 hours in total. [40+56=96] 72 Hours Recall that you have 168 hours in total for the whole week. Subtracting the 96 hours you use for your full-time job and sleep, you have 72 hours left. 72 HOURS! What are you doing with that? I don’t just sleep and go to work I get it. People normally don’t survive with just sleeping and going to work. There’s still eating, showering, commuting to work, the gym, and so many other things that we need to keep a balanced life. Why don’t we take a closer look? GYM = 7 hours (1 hour a day) Eating = 10.5 (half an hour a meal, three meals a day; even if you already get a lunch break at work) Shower + dressing up = 7 hours (1 hour a day) Commute = 14 hours (a generous 4 hours a day) 7 + 10.5 + 7 + 14 = 38.5 hours in total for all of that. Remember we still had 72 hours left? 72-38.5 = 33.5 hours. You have 33.5 hours left to spend! That’s almost the same amount of time you spend at your full-time job. Yeah, that’s right. It’s that much time. How are you going to use that extra time? YOU have enough time How much time do you really need to spend with your friends or family? If you can’t spend at least 2 hours a week to improve your life, then please stop reading and close this. I do not wish to take you aways from everything else that you hold dear in your life. If you can spare 2-15 hours a week, then continue reading. Still here? Good. Congratulations on taking a step forward and investing in yourself. A second source of Income The average millionaire has 7 sources of income. How many do you have? We already talked about how you have enough time in your hands to do something about your life. You can use that time wisely and create other sources of income. Here are some Ideas: Get a second job. This is possibly the fastest one to get and the one that will surely pay you right away for each hour you spend working. Even Bill Gates once said that no job is below you; not even flipping burgers. Sell old stuff you don’t need You can dig through your pile of belongings and get some money while cleaning your closet. E-bay, LetGo, Facebook Marketplace, and some others are good places to start and sell them. START A BLOG Starting a blog won’t make you a millionaire overnight but the potential is endless. Imagine working 2 hours a week while earning thousands? Yes, it’s possible with blogging. A lot of people make a decent living out of blogging and I know people who earn between $100 a month to $500 a day. You can write about anything you love. You just need to be real and authentic. I personally recommend this and will talk about it more in detail next time so be sure to subscribe to my email list so you get notified the next time I post. You can find a subscribe button within this page. If you need some more help, I encourage you to reach out and message me on instagram @jessilserna or click here to follow me there. Or if you prefer facebook, click here Thank you for taking the time to read. Again, congratulations on getting on the journey to improving your life. Help a friend and share this to them via the share buttons on the side (desktop) or the bottom (mobile) See you next time

The post Why You NEED Other Sources of Income appeared first on Jessil Serna.

income Archives - Jessil Serna

Benefits of Passive Income

Why You NEED Other Sources of Income