I learned some new words this past holiday season. Passive income and active income.
Passive income is our investments working for us, earning income without effort. People often include owning rental property in this category but I can’t imagine anything more labour intensive than leaking toilets or chasing rent cheques.
I am late to the investment game so my passive income is slim. I believe in the earth moving, life changing power of compound interest but I wonder if I have waited to long to take advantage of the magical mathematical power.
Active income is the money we earn from actively working just like I did for 8 long frustrating hours today. My brain hurts. My feet hurt. I love my job, I love my clients but some days I would like to cut my hours and still be able to buy dog food and stay home on the days when the car is covered in ice.
I need to build passive income so that I can abandon the act of tiring myself making active income.
I also learned another new word this week – URL. That stands for Uniform Resource Locator. I knew that the URL was the http: followed by lots of letter in the upper left hand corner of the monitor but I did not know what it meant. Each webpage has it’s own individual address. You need to notify search engines of the URL for your blog so people can find you. I could Google the blog and I thought that was enough. I have added the URL for The Money Puzzle to Bing and Yahoo. I thought the entire web was run by Google but some people use other search engines. Now they will be able to search for this blog.
ps. Spoke to my car insurance providers and there is no benfit -none- to paying the full amount yearly versus the monthly withdrawls. Go figure?
The nice young woman did tell me that she pays her car insurance monthly with a direct charge to her credit card for the points. I have a cash back Visa and will be making that change in January.
pss
No spend update. As long as I work long hours I am too tired to shop to fill the fridge. Did I mention that I hate shopping. It is a chore that I do everything to avoid. Even the fun type of shopping for shoes and clothes is a chore so those things are easy to skip but I love take out suppers and would have easily have made a stop at a fast food drive through on my way home but then I would run out of money before the end of the month. I still have $114.00 in my wallet.
Is there anything you have lying around your house that you could sell online? I made $60 by selling some random things. It might not be much but it’s something. I like having less clutter lying around.
I have less stuff than most people I know. My friends joke about my minimalist decor. I get rid of everything. As soon as my sons move out the closets and cupboards and the big space under the stairs will be nearly empty. Selling stuff is a good idea but I don’t have much of anything and I like it that way.
I’m glad to see that you pointed out the difference between passive and active income because most people understand this. Good to see to see that you added your blog to other search engines. Keep on posting!
Luckily for my budget there is a lot of good and free information online. I read an article that mentioned active and passive income and that was the first time I had ever heard these terms. Lots to learn.
Have you thought about putting ads up on this blog? It might bring in a few extra bucks.
I would have to have several thousand more than my current 15 readers to get accepted as an ad host on WordPress. Maybe in a year or so, if I can build readership, I will be able to post ads.
Hi Jane, I have become an additional reader for you as of today. I saw one of your posts on the Financial Highway–the article where you read about Active and Passive Income.
Welcome Laura. My comments on Financial Highway were not popular. I thought blogs were the place for opinion and exchange of ideas but some people don’t like that. I am not one for happy chat if I disagree with an opinion. No personal slams or jabs – just the facts.
Keep the ideas coming. I appreciate the fact that someone is actually reading what I wrote and you have good ideas.
I know your comments might not have been popular, but they were interesting enough to make me check out your blog. I’m hoping to stick around and see how you accomplish your goals. Your life is very real and comparable to many other people. My personal goal is to generate passive income by submittting photographs to stock picture websites. I love photography anyway and this seems like something ideal for me. I got a beautiful DSLR camera and am learning how to use it–so different from a point and shoot camera.
You are going to be sadly disapointed with me Laura. I just post free images and use them here. I have a tiny idiot proof camera that I struggle with. I am hoping to get a picture of my extemely expensive dogs up but one does not like to look at the camera and the other has a black face and I have no good pictures of her. Always red eye and black face that appears to have no definition.
You can correct a lot of photo issues with editing software like Adobe Lightroom,but then software is another expense!
I struggle with my camera and my computer and the thought of software and editing makes me break out in a nervous sweat.
Gotta love putting insurance on a cash-back card
For mine, there’s a $2.50 per payment charge to split it up into more than 2 payments per year, so I can’t fully annuitize it, sadly.