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.
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.