Image source: Getty Images
I was looking forward to 2025 and thinking about how to increase my income. Here is my plan!
Real income
Most ideas for earning money without working for it seem to end up involving a little work.
On the contrary, my method is simple. I plan to invest in blue-chip stocks with proven business models. Then, hopefully, I’ll sit back and let the assignments roll in.
I will focus on stocks that I expect to pay (not all of them do). However, even a promising-looking share can disappoint, so I will keep my portfolio diversified among many different companies.
Getting into a regular savings habit
Investing takes money. But it doesn’t really need much.
I will try to practice regular investing in 2025. To do that, I will first choose a stock trading account or Stocks and Shares ISA that best suits my financial circumstances.
Then I deposit money regularly. Even just £3 a day could add up to around £1,100 by 2025 alone.
It aims to achieve great benefits, now and in the future
My next move will be to find stocks to buy that I hope can turn my income dreams into reality.
What will I be looking for? Let me start with the last goal.
I want dividends, which means I should invest in companies that I expect to generate enough cash to support themselves. That spare money should be made into a business with the ability to create value on a large scale.
So I would look for a business in an area with high customer demand that can rely on at least one competitive advantage meaning that potential (or current) customers are willing to pay more for you.
Hopefully, that could mean big gains not only in 2025, but beyond.
One income share to consider
As an example, one share I think income-oriented investors should consider is insurance Phoenix (LSE: PHNX).
It may not be a household name, though FTSE 100 The company operates using products known as Standard Life. With over 10 million customers, the UK business has a huge customer base which I think sets it up well for years to come.
The business model here is both simple and complex. That is, it seems simple on the surface – but can be complicated in practice.
For example, consider the Phoenix mortgage book. That seems to be a straightforward part of its business and could be very profitable if things go well. But if there is a crash in the property market, the price speculation involved may be short, resulting in losses for Phoenix.
Income from various companies
Still, I think Phoenix and its 10.3% dividend yield are worth a look. On an annual investment of £1,095 (£3 per day), that product equates to £142 in income.
The average yield of the FTSE 100 is more than one-third of Phoenix. But by diversifying into different shares, I invested £3 a day not only in 2025 but for years to come and I can reinvest my profits, hopefully setting up permanent income streams and hopefully growing passively!
Source link
