When people talk about saving money, they often segment the discussion into only focusing on the act of not spending their funds and practicing frugality. However, there’s a fine line between saving your current funds and earning more money, as both have a positive effect on your bank account. The problem is, the money you earn at a standard job is never considered a means of saving money because in most cases it’s already factored into the budget, so we’re always aiming to stay under certain limits based on our projected income. To go beyond the confines of the predefined budget you’re restricted to now, it’s best to build a residual income portfolio. Doing this can really assist and accelerate your current savings plan, and it can even be done without throwing too big of a wrench into your current schedule.
Creating Wealth Boosting Revenue Streams
The idea is to create online businesses (i.e. – blogs, brands, retail stores, marketing, selling digital products and services) that are monetised in a variety of ways, primarily including ad revenue, subscribers, customers. Profit can come in many ways with online income and eventually it can add up to a nice chunk each month. Once you’ve found a method that works, even just a little bit, you can rejoice because all that’s left to do from there is scale up and optimise. The best part is, you don’t need to have any experience or knowledge about eCommerce or any of that stuff to get started, as it’s extremely easy to find a quick guide to making money online nowadays.
The Luxury of Not Needing the New Money
The whole idea of using this method as a savings booster relies on the assumption that you already have a main form of income to live off. Obviously, if you’re spending all your online money as it comes in, you won’t be saving much at all, and in all honestly it will most likely take a while before you would be in a position to completely quit your job anyway. Thus, the best way to ensure you’re using these new revenue streams to increase your wealth is to schedule automatic transfers to your savings account and pretend as though the money doesn’t exist. Theoretically, if you’ve been surviving thus far without it, you should have no problem keeping the “don’t touch it” mindset going forward.
Re-investing a Portion of the Proceeds
Saving all of the profits initially is the best game plan, but when your online business really starts to pick up steam and exceed your savings plan, then it’s time to start re-investing. You may even want to take the initiative to invest a decent amount up front to give yourself a better head start. While this would be going against the act of saving in the beginning, in the long run it can help to give you an optimal starting point as an entrepreneur.
Anything is Better than Nothing
In closing, you’re probably wondering how much money this method can add to your bank account. Although results will definitely vary, even in a worst-case scenario you’ll be generating and saving more than you were before you started, as it’s nearly impossible to earn nothing online if you’re actually devoting 30 minutes to an hour of effort into it each day.