Planning your investments around generating an income
If you’re looking for a way to supplement your existing income
or to provide you with an income in later years, there are ways to do this through investing.
If you’re an income seeker, you want to see your investment capital working hard for you over the longer term. And you don’t want to take on too much risk to achieve this.
There are a number of ways that you can generate an income with your investments…
How to generate an income from your investments
If you’re a conservative investor, the investments more suited to you will be in the form of bonds and deposit accounts. The returns may not be mind-blowing, but if you take time to pick your investments wisely, you should beat the rate of inflation.
You could look to invest in government retail bonds
. With these, there’s also an option to invest in inflation-linked bonds. If you’re worried inflation is going to rise over the term of the bond, these are worth considering.
If you’re prepared to take on more risk and put some money to work in shares, you could look to solid dividend paying companies. Look to the more established, large companies on the JSE.
Investing in these dividend paying companies means you could receive a dividend cheque twice a year.
If you opt to invest in government retail bonds and dividend paying shares, reinvest your income if you don’t need it now. This will help to grow your income further in the future. The same goes for your deposit account, leave the interest be and let it help grow your nest egg.
So there you have it. How to go about supplementing your income by investing.
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Achieve financial independence one income stream at a time
I’m a big believer in financial independence. I don’t want to be dependent on anyone or any institution to take care of my family or me in the future. Having one source of income is very scary to me. If that stream of cash dries up – for whatever reason – I want to know that I have other cash streams I can tap into.
When most people think of extra income they think of athletes and actors who get endorsement and advertising deals.
But the truth is that anyone can create extra income streams.
You don’t need well-placed connections. You don’t even need to be especially smart.
All you need is the willingness to invest a little extra time in learning about your options – and then invest a little more time and some money pursuing them.
That’s why I started this publication – Because I want to show you how to create multiple income streams for yourself.