An update to my wealth Management post. Things I have done and incorprated into my life.

I followed up on the informtaion and insights I gain through reading "Rich dad, Poor Dad".
I have tried to gain myself a financial education. So I read about taxes. Most of it didn't apply as I work for a large employer and everything is PAYE. But I do have some shares that I had to pay extra tax on the dividend. Through my studies I discovered I could have a self select ISA in to which I could put my own shares. I always assumed a shares ISA had to be the products offered and I had no choice. Now I have transfered over my shares into this ISA I don't have to pay out the extra dividend. Money saved and books paid for themselves already in one move.

Made sure I got all my work expenses in, logged and tracked. Cashback through the credit card on those purchases.

Cashback credit cards now on both joint and personal accounts. Nectar card being used, even online to boost points up for the Christmas spend. Work wants us to do more home working, excellent less fuel to pay.

Bought some ishares bonds and recieve a some money every month.

Buying shares through the company scheme pre-tax. So theoretically making money on each purchase, but they are in trust for 3 in order to keep the pre-tax benefit. This is along term strategy, but hopefully will be worth it in a 3 years time.

Sell on ebay of old stuff in the house we didn't need anymore and raised £250.

Started lending money through a crowd sourcing website zopa. Put in the £250 made on ebay plus a dd of £20 per month. Loans are 2-5years, so again a long term strategy, but intend to keep adding in extra cash. Money made is re-invested.

Cut back on spend in the house. Got a membership for costco and have been able to buy some stuff in bulk and store in garage in order to save money.

Finally I have written a book. Its advertised at the side of the page. This is very long term project. I tend to keep writing a couple a year and build up list. Its hard work to write and even harder work to market. I have done this through self publishing on amazon. Self publishing and the book market is extremely competitive. However, I do enjoy writing so will carry on with it in the hope I get good enough and build a fan base. If I can do that these books can earn me money in the background, the perfect passive income. If after a few years I have a good enough reputation I may offer editing and proofreading services that I can do in the evenings or weekends.

The list grows of things I am looking into. However, time is the biggest factor at the end of the day. There is only so much of it so need to use it wisely.

Wealth management

Saw a program on the tv last night about wealth creation and wealth management. very interesting I think I will definitely be reading "rich dad, poor dad", have know asked for it for Christmas. Basically the premise being you re-invest your money into assets that then generate you additional income. You save in the early years re-investing again and again for the pay back to come later on with passive incoming. The examples they showed were mostly people who have done this through the property market through rentals. Pre -recession this was probably easier, get a mortgage buy a small property rent it out and use the rental to pay off the mortgage. Creating a property that becomes more owned by you as time goes on, plus hope for market value increase as well in order to sell off at some point and re-invest again. Harder in today's market to get buy-to-let mortgages, however rental rates have increased and more people need to rent due to increasing housing market, which is probably inflated due to people investing in property. May still be a way forward if you can afford it to start off with.

I suppose passive income doesn't have to be just property. Shares create dividends, interest on savings accounts, isa &  google adsense. Some effort involved in setting up google ads and something for them to appear like youtube or your own websites. They can generate income after the event. Isa and savings the same less risk, but also less incoming coming back. Shares more risky again, but better return in terms of dividends and possible share price increases. If an author or musician your previous works out on the market may continue to earn you income in the years to come as well. They could be seen as an asset in this sense. Has made me think about my income and what I do with it.

I have have been dabbling in other areas of passive income as well. Zopa a crowd sourcing money lending site. You can lend your money out and get a high rate of interest than savings with a bank etc. There is a risk involved and fees to pay hence why I am testing it out.

Also crowd cube a crowd source dragons den/investment angel web site. You get give funding to start up companies and get shares. Obviously a longer term investment and much risker again, but interesting to read the pitches and a chance to get in at the ground level of a new company. Again I am testing it out with to get an understanding.

Also little things you can do like cash back credit cards is a form of passive income. Reward points another way of earning a very small but passive income for very little effort.

Years ago I worked out if I never went out, no holidays, saved all my money and stayed in the same property, I could slowly amass a large amount of money that I generate interest from in savings accounts or re-invest. Instead I choose to have holidays, bought a motorbike, moved house twice (have made money on these, but it only on paper as won't downgrade) had two children (very costly). I haven't put aside lots of money to re-invest. However I could start now as have some world experience and knowledge and ideas on how this could be done. Building up a fund for Uni education I suppose long term, for my children or preparing for retirement as I don't trust pension funds.(in my mine they are encouraged so greedy bankers can use your money to gamble on the stock market). I am going to write out a financial strategy and stick to it for the next few years to see what I can generate.