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. Allow me to list down a few reliable income-generating investments:
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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.
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.
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.
Tip #4 -Real Estate Investment Trust (REITs):
Considered a more liquid approach to real estate investing.
Tip #5 -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. Henceforth, it will start generating monthly income.
Tip #6 -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 utility. 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 Moreover, the amount which is swept can still be withdrawn using ATM.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
Tip #8 – 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.
