The Art of Passive Income: How to Supplement Your Earnings in the Year Ahead


The UK economy is growing, which means that there has never been a better opportunity to develop your income streams and build a source of personal wealth. This will not only boost your immediate prospects, but it may also help to safeguard your assets in the event of a financial crisis or economic decline. Developing one or a number of passive income streams is an excellent way to achieve this, as it enables you to accrue income while also earning a living through a primary source or job role. 

Embracing Passive Income: How it can Supplement Your Existing Earnings

While this is a sound financial theory, how can it be put into direct action or practice? 

Maximize your Earnings with a High Interest Savings Account: For those who earn a relatively small annual salary or are risk averse, a high interest savings account offers the most viable method of accruing passive income. There is a growing range of options and financial products now available on the market, however, so you will need to be diligent and research each one thoroughly before making a firm commitment. A savings bond is a particularly suitable option, as it offers a secure, fixed rate of interest and cannot be accessed until maturity. There are also numerous investment account options on the market, which have variable levels of risk and generate returns on your capital.

Consider the Financial Markets and Derivative Products: If you bring home a reasonable salary and are left with a relatively high sum of disposable income each month, then the financial markets may provide your best opportunity to accrue passive capital. While you should not attempt to enter the markets without having acquired a broad base of knowledge or understanding, it is an exercise that delivers a substantial return on your original investment. Derivative products such as currency, futures contracts and carbon emission credits can be accessed with a minimal amount of capital, while the fact that they are traded on margin also enables participants to earn more than they have initially invested.

Create a Property Portfolio: Should you have an extremely well paid job or access to substantial savings, then the world of property development is an extremely welcoming and inviting one. Real estate still represents the single largest asset class in 2014, despite various fluctuations in the market and signs that the market in the UK had stagnated during the second financial quarter of the year. While there is risk associated with this investment model, this can be easily negated as there are a number of potential service providers available who can provide assistance. Take the House Buyer Bureau, for example, which buys unwanted property for a reasonable price within a seven day period. This means that even if a deal goes wrong, you can quickly recoup the majority of your investment.

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