Not since the crash of the 1920s led to the “Great Depression”, has the state of the global economy been so…well, messed up.
So what can you do to protect your family in these uncertain and largely uncharted times?
Smart money is saying two words: Passive income.
WHAT IS PASSIVE INCOME?
Passive income is earnings derived from an enterprise or undertaking where you’re not directly involved with it. For example, earnings derived from rent or being a “silent partner” in a company.
CAN’T I USE MY REGULAR INCOME TO SAVE?
Well, yes you can. But considering that most American families were not nearly saving enough before the outbreak of Covid and less are doing so now, it’s a good idea to take some time to conduct a thorough audit of your families financial circumstances now versus what your goals are in the future.
Investopedia has loads of useful information and tons of technical data to help you along.
5 GREAT WAYS TO GENERATE A PASSIVE INCOME
#1 – Property. The tried and tested no-brainer. But don’t make the mistake that many of us made in the past by over-investing in properties with “too good be true” balloon/residual payments. Rather focus on starting small with properties in sought after areas that you can afford and if they have existing tenants, bonus. Read more, here.
#2 – Investing in stocks or foreign exchange. Ok, so this may seem like it’s not for you and that’s probably due to never-ending jargon and finance-speak. But as technology has changed, so has access to financial markets and with some online tutoring and coaching, you’ll be amazed at how easy it is to buy and sell stocks or try your hand at forex trading.
#3 – Join the “AirBnB” club or start an “instant hotel”. Now, this is probably more suited to those who already have an existing second property. But don’t be put off by the prospect. As with most goal-driven plans, some careful planning, research and upskilling can have you enter this market – and if it’s done right you could be sitting very pretty.
#4 – Be your community’s “referral Tzar”. Ever been sitting around BBQ fires listening to your friends ask questions like: “Hey, does anyone know a good realtor”? Or “I’m thinking of changing my life policy – know a good broker”? Just about all business and solutions providers today will pay referral fees for new business and in the case of property or business brokers, that could be quite lucrative.
#5 – Turn your existing property into a holiday home. Here’s an idea that works best when you’re starting to save towards a business or endeavour that will ultimately lead to a regular passive income and is great for when you’re starting from “zero”. With minimum investment and some creative kickstarts, you can turn your existing home into a short-term holiday home so that when your family goes on vacation – someone else rents your home while you’re gone.
The easiest ways to earn extra money are to rely on skills and passions that you already have, so sitting down with your family or other half and conducting an “audit” on all of your likes, hobbies, skills and passions could yield some great results.