Here’s how I’d start making powerful passive income from scratch
by Charlie Keough
Having multiple streams of passive income is the dream for millions of investors. There are plenty of ways to achieve this. I could start a business or buy property. But I think the easiest way to start out is by buying dividend shares.
Famous investor Warren Buffett once said: “If you don’t find a way to make money while you sleep, you will work until you die.” That’s a mantra that’s driven most of my investment decisions.
During my time investing, I’ve slowly been building up my nest egg. In the years to come, I’m confident that it’ll provide me with a solid source of passive income.
If I were starting from scratch today, here’s what I’d do.
Consistency is key
There is one tip that I deem to be imperative. That’s to invest on a regular basis.
This can be difficult, and life can get in the way. Unexpected outgoings crop up all the time. And it’s smart to have an emergency fund for times like this. However, by choosing a select amount, say £200 a month, and ensuring that I invest that every month, I know I’ll be able to achieve my goals more quickly.
Investing regularly provides so many benefits. For example, by doing so, I’m pound-cost averaging. This means by drip-feeding my money into the stock market, I’m not trying to time the market. As they say, time in the market beats timing the market.
With that in mind, by investing regularly I can also benefit from compounding. This means I’ll be earning interest on my investments as well as the extra money I make.
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