Strong financial foundation is elusive without financial planning. If you ever asked yourself why money disappears so fast or where to find more sources of online earning and offline side hustles, this article will be helpful. Even the most successful and wealthy people may lack the skill to plan finances. It is not only a matter of sparing and earning, it is about the whole philosophy keeping you confident in tomorrow. An example of passive income playing a great role in achieving financial stability are legit side hustles, such as the ByteLixir app allowing to make money sharing your internet anywhere and anytime. Today we will look at financial planning, its components, and the role passive income plays in it.
Active and passive income streams ideas
Financial planning is the process of determining how your money and other resources assist you to set and achieve life goals. The procedure involves searching for active and passive income streams’ ideas from finance-dedicated books, blogs, or dialogues with experts. Let's take a look at the steps involved in financial planning:
- Setting goals
- Prioritizing tasks
- Creating a budget
- Looking for income sources.
#1 Setting goals
The first step is defining your desires. Consider it carefully, and write the goals down. Everyone has his own dreams, and it is ok. Even if you want to make an internet connection to pay for itself, it is achievable. It’s profitable to determine in general terms how much time and money is required to achieve every objective. Simple to install and use, transparent, and accessible online earning is available to anyone right now. As long as paying off the mortgage submits to patient and motivated people. For someone a suitable goal is buying a new $100 thousand car by the end of the year, and for others it is about creating multiple passive income streams.
#2 Prioritizing tasks
The prioritization follows the decision-making. Once you’ll focus on hard-to-reach aims only, more important but easier tasks may be missed out.
One of the most convenient methods of prioritization is called the “Eisenhower matrix”. Take a blank sheet of paper, and draw a large square. Divide it with two lines into four quarters. Now there is a table with two columns and two rows. Name the columns "Urgent" and "Not urgent" with the rows entitled as "Important" and "Not important". Every intention suits one field. Here is the description for each piece:
- Urgent and important tasks require a prompt completion. It takes a few steps to make money sharing your internet, so we recommend doing it ASAP.
- Important, but not urgent goals can be postponed in time, but completed in detail and without haste.
- Urgent and not important targets require a quick solution. Perhaps you should shift them to someone.
- Not urgent and not important things are not even worth your attention.
#3 Creating a budget
A budget is a financial plan with records of all revenue sources and expenses. Leverage free web applications designed for banking and budget management. Consider all wealth-bringing streams, including wage and all types of passive income streams.
Reasonable spending is an art. Master it by planning expenses properly. E.g. proceed from the most prioritized goals to optional. A popular spending tactic is the “50/30/20 scheme”:
- 50% of expenses should be mandatory: food, clothing, taxes.
- 30% can be spent on entertainment and leisure.
- 20% of total revenue should be put into savings.
#4 Looking for income sources
Reasonable aims, clear priorities, and a perfectly planned budget mean nothing without reliable origins of wealth. The main one is regarded to be a full-time job or freelance activity. Usually the one willing to raise the revenue increases the amount of work and spends more hours on it. or changes occupation/company for a more promising career.
Creating multiple passive income streams is an additional approach. This is a kind of activity topping up the personal wallet with no need to work on it daily. These are:
- Interest on bank deposits
- Pension
- Legit side hustles, such as selling internet bandwidth.
Mostly even the simplest ones require various preliminary or periodic efforts, such as online earning on a blog. Assess your capabilities and decide what side hustles are already available. Think about the start-up expenses and possible profit.
The ByteLixir application helps to make money. Sharing your internet brings new users about $2–4 monthly without any effort. All you need is to install and run the app keeping it online. Only the untapped capability of the online channel is involved, and you are free to start and stop the online earning process anytime. We offer multiple types of passive income streams: through personal gadgets, proxy servers or the referral program. ByteLixir is a flexible and safe way to enhance your financial planning and stick to the plan. Sign up now to achieve your financial objectives.
