Are you living paycheck to paycheck, barely able to afford the things you need to survive? This is the place many people find themselves in, and it’s quite unsettling that so many do not even have enough spare money to pay for emergencies. This problem is a combination of both society, since it often doesn’t value hard work, as well as paying practically nothing for tedious and bad jobs that don’t require any skills, in addition to poor money management on the user’s end.
I did a video about managing your money, so be sure to check that out. It covers the groundwork of having some passive forms of income. We’re going to be diving more in depth with passive versus active income, and why it’s important to have multiple sources of income. Active income is the money you make by doing work. It is people’s primary source of income. If one loses their job, so goes their active income. Passive income is money that works for you, all day every day, and often does not require your intervention to make it. Passive income also tends to be less than active income.
How can you have more passive income that works in the background? Well, it comes down to identifying ways of having the money you make through your active income work for you in the background as you slowly build it up through passive income. Some forms of passive income can give you quite a bit of money. An example of active income would be your typical job of working at a restaurant or a store. Not favorable jobs, and they don’t pay much. The money you make from them can be put into a long-term interest bearing savings account, a retirement account, the stock market, cryptocurrency, and other assets that grow in value over time. This is passive income, since you’re making money here and there with your investment. Your $100 investment could be $110 tomorrow if you start today. And that money can grow even more in time.
Another form of passive income is active income that turns passive. For example, you have a website where you review various products and earn commission for each referral. Your main audience will sign up and buy the products when you put out a new review, but since your previous reviews and work are still online, people years later can find the reviews you’ve written and you’ll earn commission when they purchase something. This means you’ll make money even when you’re sleeping, at any point in the day, without you doing anything.
You want to think long-term. So find a way to put your money away and have it work for you without spending it. The problem with inflationary currency like the US Dollar is that trillions can be printed out of thin air, depreciating its value, since it has no real value. While the face value of a one dollar bill will always be one, the goods and services it can buy becomes less and less. Think about when your grandmother told you that a loaf of bread and a candy bar used to cost just a few cents. Now think about the price of it. Then think what your grandchildren will be paying. If you’re holding cash, your money is depreciating in value since it is an inflationary currency.
I used to recommend bank accounts with high interest, but can no longer recommend them since the vast majority of them now pay abysmal interest compared to other methods of saving money. One method is the stock market. If you have a retirement plan with your employer, then your money is in the stock market. The wealthiest people also have many of their money in assets that appreciate in value. Picking the right high value stocks, such as Apple, Microsoft, Nvidia, Broadcom, and Qualcomm, pay not only a dividend, but also grow over time. These companies are stable and the price of their stock increases over time, meaning that a $100 investment in one of these companies today could be worth double in a year or two.
There are multiple sites you can use to buy and purchase stocks. One of my favorites is M1 Finance. If you use my link and fund your account, you can get up to $50 for free. Another great one is Webull and Robinhood, which will give you free stocks if you sign up using my link.
The stock market is great for long-term growth, but there is another way, which is cryptocurrency. It is much like the stock market, but far more volatile, which can be unsettling for some. If you cannot handle risk, it may not be best for you. Coinbase is one of the most well known gateways to purchase cryptocurrency. You can get free Bitcoin if you use my link.
With crypto, there are what’s called ‘stablecoins’ that are, as the name implies, stable and pegged to the US Dollar. One stablecoin equals one US dollar, and deviations from this price are miniscule. You may be wondering what the purpose of holding a stablecoin is if it won’t increase in value. Well, there are a few platforms that will pay high interest on various cryptocurrencies, including stablecoins. Some rates are even over 10% APY. Meaning, $1,000 invested today would be $1,100 in a year just in interest. This is far higher than any bank account will give you. The platforms I recommend are Celsius (use code: 1797652392) and BlockFi. If you use my link, you can get free Bitcoin.
To have multiple sources of income is to use your active income and invest it for long-term growth, as well as find shorter term ways to put your money to good use that’ll earn you more money while you sleep. Money, while it is for spending on goods and services, should first be looked at strategically to find ways of maximizing what you have and multiplying it. Would you rather be paid $100 and spend it on $100 worth of items? Or would you rather turn that $100 into $1,000 in time and then use that? Think long-term and find ways of maximizing your profits and you’ll be in good standing.
Let me know how this works for you. Have a great day!
I would consider practically all my money to be passive. While I do actively work to make the money, most of the payment is not directly tied to the work, and is paid indirectly as a result of the work. Also, the majority of my money is in assets that increase in value, both stocks and cryptocurrency. I’ve doubled, tripled, and even quadrupled my money in these assets, plus making dividends and interest. I have always managed my money well, and even during times I don’t make much in the month, I have plenty to sustain me as it rapidly grows. Also, inflation is a big cause for concern, so we must save up as much as possible!