Prior to the great recession of 2008, you may have benefited from regular cost of living increases to your wage. These were implemented primarily to cope with rising inflation, but they have become a thing of the past in an increasingly uncertain economic landscape.
Even though inflation in the UK recently fell to a one year-low of 2.5%, this is far above the Bank of England’s target (2%) and continues to compound wage stagnation throughout the UK.
As a result of this, developing multiple sources of income represents the best way of accumulating wealth in the current climate. But why is this, and what are the best methods of increasing your earning capacity?
The Benefits of Multiple and Passive Income Streams
While we have seen wages stagnate and inflation rise disproportionately in recent times, the relentless pace of technological advancement has created new and increasingly innovative methods of generating income.
With wage stagnation a prominent feature of both skilled and unskilled markets during the last decade, this means that you’re extremely unlikely to boost your earnings by pursuing a traditional pay-rise.
Even promotions may not be as lucrative as they once were, so leveraging technology to access viable earning opportunities only represents your best course of action.
The biggest impact of innovation and technological innovation is that it has made passive income streams accessible to regular citizens. Passive income refers to earning opportunities that do not require direct participation from an individual or group, enabling you to generate money without compromising on your existing working schedule or commitments.
So, by understanding this market and identifying which opportunities best suit your knowledge and outlook, you can add new income streams and your total earnings as a result.
One of the best examples in the digital age is online trading, which can be performed through virtual brokerage sites such as GXFX. This type of platform not only offers real-time access to numerous markets and analytical tools, but it even provides demo account through which aspiring traders can hone and develop their strategies.
For those in search of more traditional or monumental gains, real estate also embodies the principles of passive income. After all, it’s possible to purchase a property and rent this out to tenants, while outsourcing the management of this asset to an industry professional.