I think the best place to start is by improving my passive income. I’m going to go about this in a couple ways to start.
First, I’m going to increase my investing activities to produce more passive income.
- Peer to peer lending. I’ve actually been doing this for a while but in the past, I was way too aggressive. I was purchasing
high risknotes; lending to people with poor credit scores. I expected some to default but not as many as I was seeing, I think this really killed my enthusiasm for P2P lending even though I was still getting a pretty decent return. These days I keep to the lower risk notes (usually with 6 to 8% annual interest); I have yet to have a note with an A or B credit rating default on me.
But where do you go for P2P lending?
Here’s a link to a list. The one I use lets me buy portions of loans for as little as $25 each and the loans are generally either three or five years in length.
- Generate some Intellectual Property (IP). What you’re reading now is actually my intellectual property; it comes out of my head and everything I’m writing here belongs to me. As a reader of this
blogyou’re taking advantage of my IP for free. However, someday in the futureI may have enough writing to compile it into a book and ask that people pay me money for it. This blog is part of my overall strategy for improving my passive income
- Ad revenue. Assuming that people start reading this blog I’ll be generating traffic. Traffic brings people and where there are people, there are companies willing to spend money to be seen there. So, part of this blog is also about having potential future ad revenue. More on this as it gains momentum.
- Investing. I also plan to purchase stocks that pay dividends. If you don’t know what dividends are, I’ll explain. Dividends are what the company pays to the investors out of the profit made during a financial quarter. When you buy stock, you become a partial owner in a company, and dividends are the tiny amount of profit that you see for being a tiny owner of the company. It may not be a sexy way to make money but the more money you make from dividends (which is passive income), the more money you can invest in other ways to make money. I keep a trading account separate from my 401k investing account where I buy and sell individual stocks. It’s not a lot (the vast majority is in my pretax retirement account) but I do have 13 shares of Proctor & Gamble (PG). Since I purchased them the value has increased about 20% and
dividendyield is 2.91% which has been paying about $37 a year, not much but it comes out to be about $3.10 per month.
I figure my passive income unrelated to my company-based retirement is about $3.71. I’ve been doing some analysis and over the next
How does all this fit in? I’ll let you know as I do it and if it actually helps in improving my passive income.
Want to follow along? How about an assignment? Go find a P2P lending site and create an account. You don’t have to invest or even link a bank account but just get one created so you can check it out and see if it’ll be right for you.
My actions today:
- I scheduled a $50 deposit to my P2P lending account. I divested substantially when I relocated for work but now, I think I’m ready to get back in. My current notes portfolio is bringing in about 6.19% and my passive income (minus the returned principle) is about $0.61 which I’ll be bringing up slowly.
- Add additional content to this site to help drive traffic. Stop for the nice story, stay if you have an interest in exactly how someone is attempting to escape corporate life.
Join me on the journey to improve my passive income and catch up on yesterday’s post.