Building a Passive Income
Passive income is income from business activities or investments in which the participant does not actively work in. In effect you make money without having to do anything on a day to day basis. This provides a great way of preventing debt.
You can build passive income in four main ways:
- Buy to let investments. If you can afford to buy a property, buy to lets are a great way of bringing in extra money each month. You should aim to have the rental income cover the mortgage by around 135-140%.
- Interest. Interest from savings can bring in a steady cash flow. Always shop around to get the best account and deal to suit you.
- Dividends. You can buy shares in a company to receive dividends or you may own shares in your own business.
- Royalties. This is income from intellectual property. For example, writing a book or a popular song, or creating an original invention.
Debt Consolidation Explained contains general information only. We strongly advise you to seek qualified professional advice before taking any action.