If you don’t find a way to make money in your sleep, you’ll work until you die – Warren Bufffet

If you agree & aspire to reach the stage where your hard-earned money can serve your financial needs in the time you don’t actively earn it and wondering the best possible road map to get to that destination?

Welcome to this article.

First thing first, let’s talk reality. In today’s world, we have been made to believe that our purchasing power has increased exponentially, though it is right to an extent, the larger true picture is that only the ease of borrowing has increased multiple X.

Today, anything from an affordable mobile phone to a car to a house and even to household things, we have the luxury to avail it even without carrying the required money in our wallet.

For almost everything, we get loans, and then we run after repaying them.

Since there is the ease of availing a product, there are high chances we may end up buying or owning something which is not part of the wish-list.

A classic example, go for shopping on a weekend in a mall near you, you will end up buying more than what you planned. Or take a quick visit to the supermarket, the same applies here as well.

Obviously, I’m not saying that you should not visit a shopping mall or a supermarket.

The take-away point for you is that there are people and corporates waiting to make you a borrower, so where is the question of making your own money to work for you.

Hope you are getting the problem statement. If yes, continue to read. I will try to make it as much as practical and don’t bore you with lectures 😊

To attain a stage where your savings can work for you is nothing but creating a passive income that can serve you.

Now, what if I say that you are already doing a part of it.

That’s unbelievable?

Yes, if you are a salaried professional (so as most of the Indians are, so I’m taking it in the example), we work for 5 or 6 days in a week, so that leaves us to have 4 to 8 days in a month where we will be taking some time off, but the salary gets paid for those days as well.

We did an analysis on what if one had invested his/her Sunday salary (investing on every Monday) for the last 10 years, where 491 Mondays would have passed by.

Let’s take one day salary of an individual is 2000 (considering 60000 per month as the net salary), if the amount got invested on all the Mondays for the last 10 years, the investment value would have been Rs.9,82,000 and the current value of the investment would be around 34.4 lakhs*.

*Considered the money got invested in Mirae Asset Emerging Bluechip Fund. * as of 31st August 2021 data

I’m not suggesting you should invest in this fund now; the whole point is that 10 years Sunday’s salary would have yielded an annual return of around 22.6% in this case.

Interesting? Hang-on.

Now, if you are getting a salary hike of say 10% per annum throughout the 10-year period and increased your Sunday’s investment to the tune of the salary hike, you would have parked in close to 16 lakhs and the current value of the investment would be whopping 47.5 lakhs.

That’s the power of Sunday Salaries.

If Sunday salary can get you these amounts, think of the scenario where you park both the weekend incomes on the following business day and increase the SIP on a yearly basis. I will leave that calculation to you. 😊

Though saving towards all your financial goals need to be continued, no compromise on those investments.

My suggestion is if you want to make your money work for you, ensure an amount regularly gets aside in a proper investment tool and allow it to grow until it becomes the amount which you can feed for every month for the rest of your life.

Hope you have gained some confidence and direction.

Summary

  • Start allocating a portion of your monthly income towards this Passive Income Creation Goal
  • Keep aside your Sunday’s salary and invest in long term funds. Increase the investment amount to the tune of increase in your income.
  • Ensure your other financial goals are also funded or mapped to existing investments and keep track of the financial goals and know how far you are from achieving the goal.