With an increasingly unstable labor market and a quotient of job vulnerability, it makes sense to explore alternative sources of passive wealth. Making money from more than one job provides a safety net that protects you from sudden job loss and gives you much-needed breathing room when you’re done paying your bills.
Passive capital or income is money that you can earn despite not actively working at a job. What you really need to do is just do the prep work and the revenue will automatically start flowing.
Earning a comfortable income and increasing your passive wealth reduces financial vulnerability and can pave the way for a well-filled bank account in a short time.
Here’s the secret to building your passive wealth from your home:
Invest your money online in a high-interest savings account
A great way to make your money work better for you is to choose to invest it in a high-yield account. A high-yield account means that if you have, say, $2,000 to invest, you can increase the money to $2,400 in a high-yield account instead of @2,200 on a lower-interest account. To find out which bank offers you the best rates, you may need to meet with a customer service representative who will explain the bill to you.
The good news is that online banking now offers the opportunity to take advantage of excellent interest rates. Keep in mind that online banks don’t have all the extras that physical banks have to pay for (rent/mortgage) for buildings, electricity bills, etc.), making their operating costs lower than conventional banks. Online banks offer a whopping 5.4% interest per year on the amounts deposited with them.
This interest is significantly higher than the 2% that traditional banks usually offer. So, for example, if you invest $5,000 in your online bank, you can look forward to a balance of about $5,240 as opposed to $5,100 in a conventional bank. That’s not all; online bank accounts can be checked from your bank at any time of the day or night. Most reputable online banks have 24/7 customer support so you can always call if you have any questions.
The more you can invest in your savings account, the higher the level of your passive assets. If you leave the amount untouched for a few years, you can look forward to an extremely attractive build-up of passive capital in your account.
Housing your hard-earned money can lead to an impressive build-up of passive wealth while your money works hard for you.