How to build a passive income stream from investing
With Covid-19, Brexit and the death of the high street, money is now in short supply for young people. With the help of this handy guide, you don’t need to be Warren Buffet to earn money from investing.
Economic calamity triggered by the pandemic has killed the high street and accelerated the automation of jobs, leading to greater job insecurity. Add in the economic effect of Brexit and the pandemic, and you can see that life has never been harder for young people searching for employment, looking to climb the property ladder or building a pension pot.
But what if I told you there was a way to earn money with minimal effort? People may tell you there is no such thing as a free lunch, but passive investing comes close. Passive investing is when you invest money into the market in a way that minimizes buying and selling. It is a long-term investing strategy and can be done by pretty much anyone. If you are interested in getting some free money, here are some simple steps you can take right now to launch your own passive investment portfolio.
Simple steps to building your passive investment portfolio:
1. Start saving
To invest enough money to generate passive income, you need a sizable amount of money. If you do not have any money to invest, do not borrow from lenders or your credit card as there is no guarantee you will make enough to repay the amount of money you borrowed plus interest.
The first step to start saving money is to figure out how much you spend. Keep track of all your expenses. Once you have your data, organize the numbers by categories, such as gas, groceries and mortgage, and total each amount. Use your credit card and bank statements to make sure you’re accurate. Aim to save 10 to 15 percent of your income. If your expenses are so high that you can’t save as much as you’d like, plan to cut back. Identify nonessentials that you can spend less on, such as entertainment.