Has your broker built an income ladder for you?
In this challenge, it is about taking back your power from the banks and not waiting on a solution to multiplying your money. Here is a list of income-generating solutions that are available at financial institutions. The result is an income ladder that should pay out either monthly or at the minimum every four months.
http://https://www.youtube.com/watch?v=2_frkYKewp0
Awareness of income options and inspired action are the keys to taking the money you earn and multiplying it. In this 100 page journal, you will find worksheets to prompt your thinking and get the creative juices flowing in building the financial plan for the lifestyle you deserve!
- Start with your current situation in terms of money mind and goals.
- Then progress through your earning plan and journal how to expand your awareness of money.
- We next look at your career earnings. (Of course, your career is your biggest investment!)
- If you are a business owner, we got you covered as we look at journal prompts for your business income.
- We map out an investing plan for you.
- Your retirement plan is not left out.
- And don’t forget that side hustle!!!
- This workbook is packed with ideas plus a 30-day passive income challenge!
✔Tip #1 – Fixed Deposits (FD):
Banks can pay the interest in the form of monthly income. The interest income gets deposited to a linked savings account each month on a fixed date. This should be at the bottom of your income ladder because the interest rates here will be the lowest. However, the benefit of this rung of the income ladder is easy to access to the money for emergencies.
✔Tip #2 -Bonds:
Bonds that offer interest can generate regular income. Interest is paid to the investor at regular intervals. This interval can be monthly, quarterly, annually, and annually. This would be the next rung of your income ladder. Your broker would help you pick the bonds that would allow you to get the interest income that comes in to each month or quarterly. Note that you also have the option of mutual funds that are only invested in bonds that give you greater variety without having to pick the bonds yourself.
✔Tip #3 -Annuity:
An annuity is an investment option that is tailor-made to generate income. There are annuities that can begin the payout from as early as 30 years of age. But generally, people buy an annuity as an income generator post-retirement. This is another rung of your income ladder. An annuity is usually sold through your insurance company and so this is a great option to discuss with your agent to make sure you are generating income.
✔Tip #4 -Real Estate Investment Trust (REITs):
Considered a more liquid approach to real estate investing and is a fantastic option to add to a rung on your income ladder. There are over 23 ways to invest in real estate and if you want to get a check in the mail without actually investing in brick and mortar, the REITs are for you!
✔Tip #5 – Traditional Real Estate:
One of the orthodox ways of generating monthly income from investments is through physical properties. If one has large capital, it can be used to buy houses and apartments. Upon purchase, put the property on lease/rent. After that, the property will start generating monthly income. For many persons, this is the major rungs of their income ladder. And then the income from real estate can be used to add more rungs to your income ladder.
✔Tip #6 -Dividend Paying Mutual Funds:
A great addition to your income ladder are dividend-paying mutual funds. Here we are talking about traditional equity or hybrid mutual funds with dividend options. These mutual funds have an objective of capital appreciation, but under their divided plan, they book profits and share it with the unitholders.
✔Tip #7 -High-Interest Saving A/c: Though technically it is not an income generator, I still like it for its usefulness for your income ladder. Why? Suppose your bank account supports the SWEEP facility. What Sweep does is automatically lock certain funds in a Fixed Deposit. This amount in turn starts earning a higher interest rate. Moreover, the amount which is swept can still be withdrawn using ATM.
DECREASE YOUR DEBT
Now that you have built out your income ladder, it is time to focus on your debt.
✔So, tip #8 is on the debt side, have you reached out to do a BALANCE TRANSFER for the high-interest credit cards that you are carrying? Once you have proof of income, you can shop around and find out which bank will transfer your credit card balance to their new credit card with NO INTEREST charged.
In this 21 day challenge, we invite you to learn how we can help you to finance the lifestyle that you deserve while increasing your savings and decreasing your debt. Be sure to sign up for the entire 21-day challenge here!
