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Saturday, 25 June 2011

My Challenge To Create Time For Passive Income

The purpose of this blog is to generate passive income which I will use to pay my monthly mortgage payments. At the moment the interest rate in the UK is 0.5% and the rate on my mortgage is 3.29%. I pay approximately £430 per month. Making my monthly mortgage payments using passive income would be such an achievement for me. I am currently generating £100 per month so far which means than I have surpassed the 20% mark.

I am working hard towards my targets but I am also wasting a lot of time doing things that are not really contributing towards the passive income stream. When I do go online I am not as efficient as I like to be and these things are really holding me back and making me achieve my goals slower. I am now determined to organise and plan in advance so that I know exactly what I am doing. 

Generating More Time

If you look at how you spend each day in a week then you can really see what you are doing. Many people often say that they simply don't have the time however if they plan effectively then there is always time to do the things you really want.

How Long Do You Sleep

Most people need 7 to 8 hours sleep every day so that they can function properly. If you are able to get into a deep sleeping rhythm then you need less sleep. I have noticed that when I am relaxed I can have a more fulfilling nights sleep whereas when I am all stressed I sleep for nine hours and still feel tired. Ultimately I want to be able to function with 6 hours sleep and if I can really achieve this I will free up 2 extra hours each day that I can devote to generating passive income. During the morning the brain functions really effectively therefore you will be doing more work during this period. To try and achieve this target I will wake up half an hour early every day until I can wake up 2 hours earlier than usual. I can probably change this habit within a week and my greatest challenge will be to get a fulfilling nights sleep in 6 hours as opposed to 8. I will do the following to get a fulfilling nights sleep by trying the following methods.
  • Deep breathing to relax before I go to bed
  • Stretch the body to help the blood flow around the body
  • Have a balanced meal during the evening that will promote sleep 
  • Drink a glass of milk to relax the brain
If I am able to practice these methods before I go to sleep I should be able to have a fulfilling nights sleep in 6 hours rather than 8.

Watching Television and General Entertainment

I usually spend about an hour a day watching television or reading the paper. If I can use this time more effectively then I can generate an extra 30 hours every month. With 30 hours extra I could write about 300 answers on Webanswers which would probably make me an extra £30 per month in addition to the amount that I have already generated. It is all about quantifying your time and looking at the opportunity cost of using the time ineffectively. Rather than watching TV which contributes to absolutely nothing I could be earning more passive income. I have now proposed a total ban on myself when it comes to watching TV, I have probably spend 10% of my life watching TV when I could have used this time better. 

Pacing Myself At Work

I work full time at a retail hardware store and most of my time I am on my feet or doing some labour intensive task. I have seen that pacing myself at work will help me maintain my energy levels and prevent me from getting tired. If I can keep my energy levels high then when I return hope I will be able to do more in terms of generating passive income. On a tired day I am able to answer about 10 questions on Webanswers however on days where I have more energy I can answer 20 questions. I work 5 days per week and I am now determined not to over work myself and find efficient methods at work or delegate my tasks. If I can double my productivity then this will definitely help me achieve my goals faster.

Spending Time With My Family

I want to spend about and hour with my family, unfortunately I have been neglecting my family because I spend time towards my passive income plans. I want to change this because I only get one opportunity in life to spend as much time with my 18 month old son and partner. If I miss my son growing up or spend less time with my partner I am sure I will regret it in the future however much passive income I generate. I have now pledged to spend at least an hour a day with my family so passive income will have to take a back seat here.

Organising And Planning My Work

It is essential to have targets and from those targets I need to generate a strategy to help me achieve my goals. Planning is also important and helps you implement your strategy. At the moment my planning is very sporadic, I write posts when I feel like it and answer questions on Webanswers when I can build up enough motivation. I have read a book called The Seven Habits Of Highly Effective People written by Stephen Covey. The book suggests that highly effective people have targets, they formulate a plan to achieve the targets. The highly effective people plan a week in advance and every task that they do contribute to the achievement of the task. I am certain that if I am able to organise my week in advance I will be able to increase my productivity and waste less time. A typical entry in my weekly planner looks something like this.

Every task that I complete on this planner contributes to my goals. Some of my goals are passive income and other goals are spending time with my family. If you can have clearly defined goals for each part of your life you can make sure that you don't neglect anything important. Here is how I want to spend a typical day in a week.

8am - 2pm                Employment
3pm - 4pm                Spend time with family
4pm - 5pm                Answer 10 questions on Webanswers
5pm - 6pm                Post a blog entry on Covering The Mortgage
6pm - 7pm                Back link my Infobarrel articles
7pm - 8pm                Spend time with family
8pm - 9pm                Dinner
9pm - 12pm              Post articles on Niche Sites

If I can outline all my task for a whole week using the following format I am sure that I will be able to see results faster. I want to work as hard as possible however I want to make sure that I am using my time effectively. Using this method along with the time creating methods will definitely help me see my income grow faster. My ultimate target was to pay my monthly mortgage payments passively before December 2011 and hopefully I will be able to do this now that I am managing my time effectively and planning towards meeting my goals. As always I want to finish this entry by passing some sort of wisdom, knowledge or experience so here goes.

Even the longest journey begins with a single step. -Chinese Proverb

If you don't know where you are going, you will wind up somewhere else. -Yogi Bera


  1. Very well thought out and comprehensive article. I only wish mortgages were that low here in the US!