Tuesday, July 10, 2018

Increasing Your Passive Income

19th Century Painting by Hugh Goldwin Riviere

Hello Ladies,

I had hoped to have another video by now but I am not able to make a decision about what subjects I should cover.  Today the subject on my mind is income: passive and active.

I once tried to explain this to someone who was desperately wanting to know how my husband could support me at home.  In order to give me a final shock, she said, "SOME of us have to work, because we don't believe a man is a financial plan."  I looked this up and found it was part of a (religious in fact) seminar for women to help them learn to save and invest).  I did respond that if the saying were true, she should refuse the inheritance left to her by her grandfather and father, and also anything she got from her husband during her divorce, and she told me she got quite a bit from his retirement and other things. The point I tried to make is that we ladies don't think any one source is a financial plan. There are many sources that people just do not see.

I read somewhere years ago that you have to maintain two kinds of finances: one is passive income, and one is active income.  The active income is obviously the money you get for labor each week or pay day, or anything you sell.  Most of our husbands bring home an income, which is used to run the home and provide for the family, and some ladies have other sources of income, whether it be a little shop online or at home, or something else.

  The passive income is a little harder to describe. It is that house you are living in, if you own it, or the little you have stashed away that is gaining any kind of interest, or the things in your home with value that you could liquidate  if you needed cash. Passive income is something quieter and less visible but is a great backup plan.

One definition of passive income is "money you are not exchanging your labor for," or income created in other ways.

(I am sorry I did not find the artist for this painting)

  Having a wholesome family life with members who learn not to be a burden and do not always need rescuing from bad decisions (bad decisions, inadvisable friendships and other things that cost you money out of pocket to correct.) IF you can explain in an understandable way how much more money you can gift to your children if they live close to home and develop a healthy respect for money earned, as well as so-called "passive" income, you may get more cooperation.  One example may be to point out something in the house and say that it has re-sale value if preserved. Or, explain why you do your own repairs, and show how it prevents money going out.

I am not claiming to have done all this, but I'm still learning and trying to see how to manage on a limited amount of money. and am sharing some ideas with you.

 We have all known of those who were extremely poor in cash, with little  in material comforts, who eventually prospered, because their cash was not going "out" all the time to correct all the problems caused by poor judgment, or other things. In a way I think this could also be called your "passive income" because it is a type of prosperity that works quietly over the years, keeping you from having to spend anything to correct something.

Still another source of income I have observed is the use of your mind and your hands to work in the home. If you can do it yourself, you will not have any cash going out. Painting and repairing things these days is relatively easy. There are now instructions online on video and elsewhere for replacing elements and pieces in the water heater, the washer, dryer, the stove and fridge. If I  had that information years earlier we would not have gone through so many appliances and had a lot larger savings.

Perhaps never stated in any financial advice, is the way we handle our emotions and how it can affect our active and passive income. Unhappy or troubled people spend more money to compensate themselves or relieve the pressures of life.

Someone told me they had watched a Hallmark series called "Aurora Teagarden Mysteries" and in it, the Mother of the young lady who had a mystery club, said, "We Teagarden ladies do not have 'melt-downs'. Instead, we figure out what the problem is, then roll up our sleeves and go to work to solve it."

Emotional meltdowns in the face of problems will cost us something, because as we spend hours in what I call a "state of stun" trying to focus on our responsibilities and purpose,  and while troubling thoughts whirl around in our minds, we lose a lot of time and do not know which end is up, are unable to focus on meal preparation (or whatever is needed) and have to go to the deli to fetch dinner, which as you know, is expensive. Emotional upheaval can also affect our ability to drive, and we may find ourselves somewhere else!  I'm not implying you cannot ever eat out, but I'm making a point about how your mind can be a source of income or loss of income if you are careful about your guarding your thoughts.
Now, as to what to do about the emotional attacks of other people when you are accused, criticised or demeaned for anything, of of the most successful tactics for ladies like me is to work it out of your head by organizing your button stash (if you are a sewist), cleaning the spice cabinet, sweeping the front porch, or washing your hair. The principle is, I suppose, is, when you feel you have been stabbed in the back or in the heart or had your mind messed with, use it as a signal to succeed at something, and rise far and away above anything you've ever done, even if it is just being happy.

If Mother was upset, she often went outside to a quite place, had a good cry (or scream) and then washed her hair.  And, this was quite a process. You had to go outside and pour the water over your hair, shampoo it with a bar of soap, then pour more water over it for a rinse, then use vinegar for a final rinse. If you will notice in some of the period dramas, sisters would help each other by pouring water over their hair.

After that, your wrapped your hair in a towel and walked around for awhile feeling like an important sultan with a head dress, and then when the dripping water was sufficiently soaked, you'd remove the towel and wrap strands of hair in strips of cotton fabric, used as rollers

By this time, those troubling thoughts and anxieties were transferred to the job at hand. When the hair was dry, there was the activity of untying those rags and brushing the curls so they would blend together, and then fastening up the hair in a style. In those days we also had a type of setting lotion made of boiled sugar or salt, and water.  It could also be made into a hair spray.

I do not think washing your hair in the shower has quite the same effect on the emotions as washing it outside using collected rainwater did. Note: we did not do this outside in the winter, but used the same procedure over a basin.

There have been many posts written by other ladies showing how getting your appearance in order, dressing, etc. can make you feel more fit for the problems ahead. 

Any thing could be used, such as mixing up a batch of bread, or something in the kitchen, starting a sewing project, or paper crafting, or whatever absorbs you the most, and it can also be a source of active income. The point is, meltdowns don't produce anything. At first you may cry but after that, you have to occupy yourself some way that has good results. Even if you are reading a book, it is better for your emotions (if you can actually concentrate on reading after any kind of emotional upheaval).

There is one other thing that can end up costing you something: listening to those who say: "That is a lovely dress you made. You could make these and sell them!"  I'm sure many ladies have exhausted themselves doing this, and then find they lose interest when it comes to making clothes for their own families. Time is very valuable and it doesn't last forever, so you have to guard it carefully.  I remember one time I made about hundred little craft items to sell and when they did not all sell, I had to donate some and use some as gifts. In the meantime I was neglecting things in the house and most of all I could have been making things for my own children and I should have kept the money spent on the project, for them.

In all things, remember to petition the Lord and ask for His stability in your life.

 do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be made known to God.  And the peace of God, which surpasses all understanding, will guard your hearts and your minds in Christ Jesus.  

Philippians 4:6-7

The point I wish to make (in case I clouded it with all the words ;-)) is that we have to make sure we don't let emotionally debilitating statements ruin us by getting us away from our short term and long term plans, dreams and goals. This in my opinion can be a source of passive income, in that it will work for you quietly and increase later in other ways. Emotions have to be under "good regulation" as the old saying goes.

I am interested in what you all think about this concept, so please leave comments.


Unknown said...

I think you are an amazing lady. I am very thankful that God led me to your blog and your videos. Lydia, I love your videos so very much. I watch them and it is as if the good Lord has sent an angel to give me advice. Ladylike advice.And by watching it is as if you are right here visiting. My mother passed away this year and even though I am a grown woman with a family of my own... I still miss her so deeply and somehow the calmness and lady like kindness of your videos calms me. I also love your blog... you are helping me grow as a Christian lady with class and grace. Thank you with all of my heart. I sure do appreciate you and I am thankful to God for you.

Unknown said...

Very good observations.

Your words encourage me to be careful of my own interests. But to keep sewing and enjoying it.

Laura Jeanne said...

I really enjoyed reading this post, Lydia. You've shared lots of good sensible advice, as usual. I especially like the idea of keeping your emotions in tune actually helping to bring about prosperity. And your suggestion of doing something you enjoy and are good at to soothe your emotions after some ill-mannered person has criticized you, is helpful - I think I will use that next time I find myself in that situation. :)

Lydia said...

Laura Jeanne, thank you very much for your comment. Sing or dig in the garden, paint a wall, clean a shelf, etc. The home improves and the critic can just keep pouting or learn from it. There was a quote Mr. S. used from the Bible, which means,"The more you persecute us, the more we thrive."

Unknown said...

This past year and a half there was a member of my family harassing me in order to get their way. At first it would derail me and I'd stew about the audacity of this person for several days.
After reading some scriptures from the bible pertaining to focusing on Christ and his love and care for us, I started to trust him more.
In the past I tried asking this person in a nice and loving way to be patient with me because I didn't have time to do what they wanted me to do. However with some people they only think of themselves and have no empathy for others. That is when boundaries must be placed and violations must be enforced. This is very empowering. Aftter watching a few YouTube videos on laying down boundaries, I began to be more confident and the last time I was harassed I actually relaxed. I think this person will not be bothering me anymore. If they do I will be ready for them.

Unknown said...

I also wanted to comment on the two types of income you spoke of.
Years ago my mother would often save gift monies for: a rainy day or "pin money". She and my mother in law would also tell me to stash a few dollars away for an emergency. A few years ago I took a Financial Peace class and they also suggested to save at least $1000 for emergencies and not touch it.
So following that sage advice when payday came I took tithes off the top, slipped a few dollars into the envelope for emergencies and the rest we lived off. I took note of some items in my home that I could sell in a financial pinch, I felt it would not be hard for me to make ends meet until I could be employed again.
Thank you for posting on this subject Lydia. Its very important.

Unknown said...

You are quite right about doing something one is good at in order to leave distressing thoughts behind. I found that doing my house portraits and reading my latest favorite novel would do that for me. Your article confirmed to me that what I felt about both is true....thank you Lydia for your insight.

Unknown said...

You always encourage us ladies. Thank you for your letter to us today.

Feminine Belle said...

Good day to all,

In my bible today it stated how wisdom and knowledge are *hidden* from us. Sealed away in which no one can read. Though we have the inter-web and such for information, still there are others hidden from us. It would seem older wisdom and insight is all but lost on the young now days, sadly.

Even have heard to be called *common* is good. Since when exactly? I remembering my father saying if someone cusses they are showing themselves to be common. (I have thought it meant not special, lacking in personality and/or honor, susceptible to lies) When did this word get a different meaning?

Mrs. Lydia, I shared with my husband part of your article this morning. He thought it well developed, well said, and how you place your emotions aside and think on others. He believes you have a very charming and warm character. (he does not give compliments lightly!)

Can appreciate what Janet shared with us today. It reminded me years back of a particular in-law phoning me, stating a lie as fact about someone I love in attempt to get us into a ruckus. I am thankful, however, God became involved as I was listening to this person and growing angrier. He called into my mind a conversation I had with this loved one earlier that day in which I shared with the caller. Their house of cards/lies came crashing down and they promptly hung up. I stood there with the receiver in one hand with the hang-up noise blaring, staring out the window concerned and shocked why anyone would do such an ugly, spiteful thing. When I shared this story with the loved one, he laughed and told me I had gotten the better of caller.

Years later, I know it was jealousy that called and showed itself unfit to stand before an all-knowing God in an attempt to tear asunder in which He had placed together.

Lydia said...

I dont hang up on people. If they are angry I let them "vomit" and then they do the hanging up. I dont want hang up on anyone because I cant afford to have anything spread around, like, "She hangs up on people"...so I let them do the hanging.

Lydia said...

Poka dot: Christ said, "You shall know the truth.." and it is no longer hidden from us , but revealed through His word. "hidden" can mean it is not recognizeable by someone who doesnt believe.

Feminine Belle said...

Mrs. Lydia,

Excellent points about angry callers and *hidden* truth. Sadly, there was one time in which I HAD to hang up. Found out later I had been hoodwinked and others avoided the family that lived nearby. Patterns, always patterns to a person's nature. Or their fruit one might say.

It was in Isiah talking about a seal being placed on reading material and asking someone to read it before it is broken. I should have been clearer with my meaning, but I think what you stated is another view in which to look at as well. Perhaps it could be *sealed* to an unbeliever? Interesting thought...

OH! Went back to some of your earlier blogs. Your one friend with the green velvet curtains sounds very classy. I have been doing my best to take her advice of *taking care of it* (cleaning) as it comes up. It has lighten my load and I don't feel there is such a set pattern to my week. Kinda mixes things up. I like that very much!

As always, a pleasure to talk directly to you!

Lydia said...

got the clean as you go and the pick-it-up-dont-pass-it-up from the original "slob sisters" who wrote the book and developed the course for homemakers called "Sidetracked Home Executives." This has worked for me the most, except for the dirty dishes, which I do not wash as they come..I usually wait til there is a sink full. Perhaps it is because growing up we had to heat our water and we didnt want to waste it on one thing. We often kept water in a sink to wash the dishes but we always had very hot boiling rinse water. We did not do a load of laundry every day because we waited until there was enough for a full load.Other than that, the pick it up and clean as you go works best for me.

Dianne said...

You spoke much of my own heart here!

Dianne said...

Another wonderful, practical, calming post for all of us women who are hungry for words that help us to be more lady-like, less 'common', more quietly productive in the home. Thank you, dear Lydia!