Financial experts always say that to move towards financial freedom, it is necessary to increase passive income, but my salary is only NTD 25,000. What can I do to increase passive income? My income is so small, how long does it take to accumulate passive income that satisfies myself?
In fact, before accumulating passive income, you should work hard to find ways to increase your salary income, which is what we often call "active income". When your active income increases, you will have the capital to start saving, and then gradually deploy a passive income investment portfolio.
In addition to inheriting inheritance and winning the lottery, most people think that financial freedom actually depends on the accumulation of time.
How can financial freedom be achieved? To put some netizens in jokes, the fastest way is nothing more than: having rich fathers and mothers, accidentally inheriting a large amount of inheritance, winning the lottery, marrying or marrying a wealthy spouse... But these are very few cases in society. If the general public wants financial freedom, they can only do it bit by bit, step by step and steadily walk this path in order to achieve the goal of financial freedom.
How to proceed step by step? It is to find a way to increase your active income (the salary income of office workers). Take Amy as an example. Her current monthly salary is only NTD 25,000. If she works hard and invests herself first to improve her competitiveness in the workplace, relying on her excellent work performance, there is a great opportunity for her boss to be willing to help her. Salary; or by virtue of excellent work ability, jump to a better company and strive for higher salaries. Just like many mid- and high-level executives in the current workplace, they started from the company's low-level, low-paying jobs. Every day, bit by bit, they made progress, which created opportunities for promotion and raises in the future, and then turned into a monthly income of 8 or 9 Ten thousand NTD, or even a workplace person with an annual salary of more than one million.
Why is it so important to increase salary (active) income? Because if you only have a salary of NTD 20,000 or 30,000 a month, you want to increase your income. It is definitely easier to rely on a salary increase at work than to rely on passive income from investment
It’s easier to work hard to increase your salary by NTD 5,000 per month than from passive income.
For example, if you have an excellent performance at work, or rely on overtime, part-time jobs, etc., the opportunity to get a salary increase of 5,000 NTD per month will be relatively easy, and you can increase it by 6 a year. Active income of 10,000 NTD.
However, if you want to rely on passive income to increase by 60,000 NTD per year, based on the fixed deposit rate of 1%, you must prepare a principal of 6 million NTD; if you rely on a bond fund, if you calculate with a monthly dividend of 5%, the principal will need 1.2 million NTD.
In other words, whether it is relying on overtime, part-time job, performance bonus or year-end bonus, as long as you work hard, you have the opportunity to help yourself with a monthly salary increase of 5,000 NTD. But if you want to rely on passive income to increase NTD 5,000 per month, you must have a principal of 1.2 million or 6 million NTD to achieve it.
Therefore, if you are an office worker with a monthly salary of NTD 20, 30,000, please give priority to increasing your active income. When your active income increases, you can begin to accumulate passive income.
Increasing active income + accumulating passive income = dual engines create "financial freedom"
Many financial experts always tell us: to increase passive income in order to achieve financial freedom. But they forgot to tell young people: Before accumulating passive income, the dream of financial freedom cannot rely solely on the single engine of "investment", but the dual engines of "active income" + "passive income" should be activated at the same time, so that the speed will be faster.
Therefore, office workers must first pursue excellence in the field of work, so that you will not only like your work more and more, but also get higher and higher incomes, and then you have the opportunity to accumulate assets at the same time and make money work for yourself. Simply put, financial freedom depends on the two engines of workplace income + investment income in order to achieve the goal.
No matter how much active (salary) income you have, you have to find a way to start saving. Of course, if your salary is used up to cover living expenses, I must tell you cruelly: Please be sure to find a way, such as part-time work. It takes time and methods to increase your active income and let yourself have money to save. Please work hard within the scope of your talents!
When you successfully open source and increase active income, you have the opportunity to start saving and invest your money in investment tools that can accumulate passive income. Of course, when choosing investment tools, you should also choose tools that are suitable for you and can help you safely preserve the value of money, such as ETFs, funds, stocks with high-quality stocks, etc.
Saving at the beginning is very senseless. After 3 and 5 years, you will feel the power.
Saving or investing a small amount of money, because the amount is small, it will be really insensitive at first, but please be patient and stick to it. Wait 3 or 5 years, or even extend the time to 10 years, and you will gradually feel the The power of money to push forward. The money you save in ETFs, funds or blue-chip stocks will continue to pay dividends and will continue to grow in the long run. If you continue to reinvest the dividends, you will feel "compound interest." With the power of power, it will last a long time, and this investment savings can bring you a great sense of security!
Therefore, for office workers to move towards financial freedom, please start by increasing your own active income, and then accumulate passive income, so that you can reach your financial goals earlier than others.