Money Talks Weekly # 8
This is my weekly learnings to our email subscribers, same will be shared in our website and linked in. Please do share if you think it benefits your dear ones.
Depending on single income has its own risk, Same time looking for multiple income is not everyone’s option. I know, most of our high salaried individual are focused and committed on one income and they are holding senior position in their organization. They are almost like married to their job. They enjoy what they do. When we discuss about their retirement, they are financially good, but what do they do post retirement after retiring from heavy responsible post. It’s a different topic.
But having second income doesn’t mean that – you need another job or side business. Rent from building is an option, royalty from a book is an option, Income from passive investment is another option. When I say, Income from investment. People get confused. I mean, Passive investment. You can have active investment like trading. But it involve time. If you do, then it is a side business. It’s good, if you have time and knowledge to do trading by own. Else, look for passive investments. You may have a question, why should I need a second source of Income ? Simply, to reduce the risk of single income !
Passive investment, Fixed Deposit and Insurance Investment product are commonly known. There are other options where we can earn best income + wealth too. It is good to explore more on this and look for your possible options to secure second source of income; here is few options:
– Bonds and NCD – Same as FD, but earn better returns from Government and Corporates
– Stocks and Dividend – When you own equity, you can enjoy a portion of profit. You can explore, good dividend paying stocks and accumulate shares there
– REITs – Real Estate investment Trust – Here you can earn rent without owning commercial building. You can invest with a small money, just like Mutual Funds
– Mutual Funds, SWP – Systematic Withdrawal Plan ( Opposite of SIP) from Mutual Fund is a good income plan
– Rent from Residential and Commercial building
– FDs / Government Small Savings plan – you can earn, interest from FDs from Banks and Government Schemes
– Peer to Peer Lending – This is a new option to lend over money to a set borrowers and earn better return than FD.
List can go on, these are passive investments, can earn regular income. IF we study well and planned well, we can build a small second income source without much involvement.
Before do any money decision, it’s good to do a planning or consult a 3rd person who is genuinely give an opinion after considering your current financial state.
Hope, it is a good read to inspire your second source of income !
Happy earning !!