The Need for More Income
I read a recent survey on the price of things following a client telling me his hard saved for pension was insufficient to meet living costs.
In 1980 the average salary was £6,000 pa and the average house price £22,676. Last year £232,500 bought you an ‘average’ house though definitely not if your salary was the average £19,000.
I picked on house prices as for most of us we need to be able to afford mortgage or increasingly, rent payments. What can £19,000 pa before tax buy you - aside from staying with or moving back to parents? To put these numbers into context house prices have risen by 1,025% whereas wages only 317%.
Income - or rather more than one source of income - is now crucial. Many have gone into property but are finding this no longer works - unless they have no borrowings. Even so they are building a potential capital gain which will result in tax when eventually they sell up.
The ideal solution is to find a source of income you do not have to earn or put any effort into. An income which is provided regardless of where you are in the world, meaning you can be anywhere in the world you choose and still earn.
Financial advisers are berating us now about ISAs and the “if you don’t use it you lose it” technical argument. With interest rates of 1.5% a year this might seem tempting.
However imagine receiving 1% each day. Crazy right?
Actually no. Very real and actually happenning.