Creating a passive investment income stream
August 23, 2011 Income Streams
Everyone looks for the easy way to quick riches but that rarely happens. It does happen of course to a few people but rest of us may give it one shot and find we are not so fortunate.
You can though slowly accumulate income passively using a simple mechanism like the interest you receive on the money you hold in your bank or savings account. It does not have the wow factor of the quick deal and vast rewards but we are here to play a game with much high chance of a positive outcome. You could call the money you ear mark to this task as passive investment income or you nest egg. You are about to use method of income generation which is normally kept well off the page of the financial papers. It’s called compound interest.
Put simply, the interest you earn is added to the sum of money in the account and it builds up over time. Of course the bigger the pot to start with the bigger the interest paid on the sum on deposit. The other factor here is the rate of interest on the account, the higher the better.