Everyone should learn how to manage their finances. Money is the fruit of hard work, and you want to make sure that it is not wasted. You can do this yourself or hire people who can provide accountancy services in London. Knowing how healthy you are on the financial front is crucial in achieving financial freedom. It will be a catalyst for you to change your spending and saving habits.
A big part of your financial statistics is your income. How much you earn is not the sole indicator of how rich or how poor you are. But having more than one source of income is highly recommended. As the saying goes, do not put all of your eggs in one basket. This is a contingency plan so that you will still have money entering your accounts in case one of your moneymakers or jobs got shut down. For many, their work salary is their main and only source of income. If you are one of these people, here are some suggested additional sources of income:
Property Rental Business
Renting out property such as a house or apartment has a high barrier to entry, but it can provide a steady stream of income. You can solely rely on the money you generate here to cover most of your living expenses. But you also have to allot a budget for maintenance and repairs. Hopefully, you won’t do this very often. Making your tenants sign contracts is guaranteed income for their durations.
Investing in stocks is basically you purchasing a share in a publicly traded company. It’s best if you invest in a company that is active in an industry you are familiar with, as being updated in news trends is a big part of it. The general advice is for you to buy when the value is low and sell when it is high. Just remember that the money you have invested here will have what you call paper value. This means that should the value of your stocks go high, you will be richer only on paper. You can only make it liquid when you sell your shares. This presents a risk versus reward dynamic. Do you sell now and risk the chance of the value going higher? Or do you want to wait, knowing that you might sell at a lower value later on?
If you like to get stocks that have the lowest risk, go for the blue chips. These are well-known and established companies. They are the ones you know will stay in their field for the next few decades.
Like stocks, investing in precious metals will have you purchase non-liquid assets. The good news is that these are rare and limited commodities. This means that the value is not likely to go down, and this will present little risk to you. The three that are traded the most are silver, gold, and platinum.
You should consider these other sources of income. You need to invest your own money in them, but it’s something that you are going to earn back. Working alone is hard enough, so it will be nice if you earn more without having to spread yourself too thin.