"Never Depend On A Single Income; Make Investments To Create A Second Source”- Warren Buffet".
The global economy is in a tough phase. The 2008 financial crash and recession still has its impact on the worldwide economy and Brexit is fueling uncertainty. With astute financial planning, you can be in a better position regardless of the economy. Prepare yourself for the future and focus on bettering your present while targeting a more comfortable life.
An additional job is a viable option to create a secondary income, but you will have to think carefully as several studies and research have concluded that investment is a much better option than a secondary job, when it comes to developing a second source of income.
In order to build your wealth, you will need to invest. Investing in low risk and high yielding investments allows you to earn strong rates of return. If you don't invest however, you are missing out on opportunities to increase your financial worth. Of course, there is a potential to lose іn an investment, but if you invest wisely, the potential to gain is far higher.
Here are some reasons why investing is vital to secure a second source of income.
Investing gives unlimited potential
Unlike being tied to a job that makes you trade a finite resource of your time for a salary, investing gives you the ability to make unlimited passive income. The more you invest successfully, the more wealth and income you will accumulate. there is virtually no limit to how much you can earn through prudent investments. And because it is your capital that is working for you, your investments will generate passive income for you irrespective of your circumstances.
Earn higher returns
In order to grow your wealth, you need to invest where you can earn a high rate of return. The higher the rate of return, the more you will earn. Investment vehicles tend to offer the opportunity to earn higher rates of return, therefore if you want the opportunity to earn a higher return on your capital, you will need to explore this option.
You can reach financial goals with investments
Investing can help you reach your financial goals. If your investment is earning a higher rate of return than a savings account, you will be earning more both over the short term and within the long term. This return on your investment can be used toward major financial goals, such as buying a home, buying a car, starting your own business, or putting your children through university.
Inflation limits your ability to pay in the future. If you invest successfully, however you can earn about 15% annual returns or more. This type of return allows you to stay ahead of inflation by a considerable margin.
Having another source of income to rely upon is a good way to secure your finances. Should something ever happen and a primary source of income is impacted negatively, another source can be relied upon. Having that peace of mind is worth researching investment companies and their offering.
For more information, contact our team.