one of the most passive incomes you can have
Probably because I grew up poor, I’ve long tried to create additional revenue streams besides my full time job. This was true when I was still working in Investment Banking, although I didn’t have as much time as I’ve got now, as an academic. Presently I have six revenue streams, some, such as Medium, requiring regular work, while others — dividends and income from rental properties requiring far less work. In fact, the way I have my property business set up and running the income is largely passive. The story of
may be of interest, before we briefly look at how I run my business. Before the Global Financial Crisis I routinely kept a large amount of cash in the bank. Far more, in fact, than the Financial Savers Compensation Scheme, FSCS, limit. FSCS in The UK is mostly the same as FDIC protection in The US, with a few of the details changed. In other words, if the bank had gone into insolvency I would have lost much of my savings, but until The Global Financial Crisis most people, myself included, didn’t worry about such things. But the Global Financial Crisis, during which banks were in widespread danger of collapse,
First of all, this crisis was only stopped by bail outs in many Western nations. In other words, taxpayer funds were used to stabilise troubled financial institutions. Their losses, in other words, were socialised. But the sum were involved were troubling, so banking regulators looked for an alternative. And they found it. Fast forward about ten years, and quietly, very quietly,
passed laws requiring future bank crisis’ to be handled by a process known as “bail in”. In other words, banks would not be bailed out going forward, until depositors funds were used, as much as available, to stabilise the bank.