The Passive Income Blog is a money related blog run by me, Mr. P Income. Ok, that’s not my real name, but how uncanny would that be? Well in all honesty, I prefer to stay anonymous whilst running my blog due to numerous reasons but mostly, I wouldn’t feel comfortable letting people know what I earn and who I really am – there’s nothing more rude than someone showboating and advertising to the world who they are and what they earn.
My main goal for this blog is to share ideas with my readers about how passive income is achievable for the masses, and not just the rich. I’ll try and share ideas that covers a wide range of experience levels and investment levels.
How Did This All Start?
It all started whilst I was working in a 9-5 day job, I’ll be honest it wasn’t dead end and it was well paid. However, it was very mundane and not very challenging – it felt like torture every time I entered the office, I think other people must feel the same thing no matter how well their job pays. The commute of a 2 hour round trip added extra hours to the 9-5. A lot of people say they only work 40 hours a week, but in reality if you add the average commute in, it’s an extra 10 hours a week, not to mention that hour lunch you don’t get paid for – that’s a total of 55 hours a week for the average Joe, and you’re only getting paid for 40 of them hours.
I also had young children at the time, and felt that I was missing out on their childhood by spending 55 hours out of the house, coming home and feeling exhausted night after night – I just never had time to do stuff with the kids. I’m not saying I had it harder than anyone else, in fact everyone who steps out the door in the morning to do their 9-5 was in the same boat as I once was.
Whilst pondering life, and how to get out of this fishbowl office grind I would feel frustrated with life, but more so with how we’re taught this (School > College > University > Job > Mortgage > Save for Retirement), only to retire at 75 and find out your pension you’ve been paying into all your life is worth jack, and you live out the remaining years of your life wishing you had taken a different path in life. Why in school are we taught pythagorean theorem, but there is no lessons on how to start your own business, learning about investments – instead we’re asked what do you want to be when you’re older? Don’t get me wrong, we need office workers just as we need Doctors – but why are we not taught early on in life so we can make our own choice?
As you can probably tell, I wasted a lot of time in my 9-5 trying to figure out the world’s problems. However one day in work, I was asked to attend a very important meeting, my boss came over and asked if I could schedule the afternoon out for a meeting with some of the senior management… I grabbed my cup of tea and rushed urgently to the meeting. Low and behold we had a three hour meeting about the shade of green we were to use on our brand spanking new website, that didn’t sell any products I may add. Coming out of that meeting I could not comprehend that we had several senior managers, my boss and me a consultant sat there for several hours discussing colour shades… the whole meeting itself must of cost several thousands of pound just in hourly rates – on the other end of the spectrum we had warehouse workers who were losing their jobs!
Enough was enough for me – I needed to come up with an exit plan that was achievable and realistic, let’s not forget I had a partner and children who I needed to provide for. I worked my ass off for several months, saving as much as I could, and not telling my partner, family or colleagues I was thinking of leaving, I still did not know what my plan would be!
I spent more hours researching online for things that I could do, that could earn me passive income – in fact turning over big numbers never interested me at this point, just as long as I could come out of the 9-5 and pay my bills would be a bonus. I started to look into real estate, but my savings pot was around £40,000 and not enough to consider making a real go at this – or so I thought.
I got speaking to people who were involved in real estate and learnt some really useful information. Surprisingly, I found that there are properties you can buy for £40,000! – I shit you not! If you’re living in the South of England, I’m not sure that this maybe the case, but up here in the North there is quite a lot to choose from, in fact I was spoilt for choice. I’ll be honest though, you’re not going to find a 5 bedroom detached house for this price. But what I did get what a large 2 up 2 down, in an ideal location for people commuting to the city centre and close to schools and transport links
After several weeks searching I found an ideal property, valued at £45,000 – I put a cheeky offer in of £35,000 to which they declined, but of course we met halfway at £40,000. I then spent several weeks doing the property up and modernising it myself with the help of friends and family (only spending just shy of £5,000 in costs).
Eventually, I rented the property out for a staggering £525 a month – you’re not going to get that type of yield with you cash sitting in the bank. I felt self worth, I even felt I had accomplished something other than choosing my favourite colour for a website banner.
I shall go into the ins and outs of my property quest in more detail in one of my blogs posts.
I had no mortgage on the property and was bringing in £525 a month, it wasn’t enough for me to leave my job at this stage, but after several months of bringing in some income I decided to reduce my hours.
Damn, what a feeling, even doing a 4 day working week felt good at this point. However, once you realise it’s possible to bring in £525 of passive income a month, you start thinking *wait, hold on a minute, I could do this again or something similar and come out of work all together….* and that’s exactly what I did do. I started to learn about online affiliate marketing and how I could boost my income to pay the bills and a little more, and as soon as I achieved that I called my boss into a meeting room, and told him I was not going to renew my contract. Along with my children being born and meeting my partner, telling my boss to f*ck off was one of the best moments of my life as it was the start of me actually living my life rather than working for no end goal.
In my blog, I’ll try and share as much information with you as I possibly can. I honestly believe if I can do it, a 30 something year old, from a council estate in Liverpool with no GCSE’s, then anyone can. Just remember to step out of your comfort zone, diversity and be prepared to take calculated risk once in awhile.