Time is money, but should it be?

I am sure that we have all heard the phrase “time is money” and if you work as an employee, this is very true.

For every hour that you turn up and work, you are giving up 1 hour for £X.

The same is true if you are self-employed. If you don’t work tomorrow then you don’t get paid.

However, many people think that you have to run a huge business to become wealthy. As an accountant who sees lots of business owners working long days and weekends, this isn’t healthy.

In my opinion, we need to scrap this phrase.

The reason that I think this, is because people need to learn that they can have multiple sources of income, including a number which you don’t have to work for; passive income

The best example of passive income is bank interest. Almost all of you will earn this, albeit probably pennies every month.

You don’t give up any of your time to generate this income. Your savings do the work for you.

The stock market works in the same way and generally has returns of around 7% annually after inflation. That is some serious money coming in for very little work.

So how can we win?

To change this, you should open an investment account and start investing little and often.

You can do this whilst working (as I am) and then whilst you are at work you are earning £X per hour, but you are also earning money from your portfolio whether you do anything or not!

That is the power of passive income, and it is vital!

Check out our free guide on investing here.