How to make your bonus work for you

Take out an extra for your pocket. Who doesn't sign up for that plan? Whether it's for lean cows, arriving with some fresh air to take a vacation, give the house a facelift or do that delayed repair that the car needs. Or, looking more in the longer term, let that “plus” be the one that closes the gap between the money that is actually needed to live comfortably and retirement.

How to maximize the first bonus payment or extra pay in 2024

In these times, the word bonus shines if you are from Latin America, or perhaps, the extra pay if you are a reader from Spain, basically it consists of an annual bonus that is received as an extra at this time in addition to our salary, it is an excellent opportunity to start or strengthen your investments. Instead of spending this money on immediate consumption, investing it can provide long-term benefits. To maximize your first payment, we leave you with the 3 fundamental points you should ask yourself

• Establish a Plan: Define your short and long-term financial goals.
• Research Investment Options: Learn about the different alternatives available and their associated risks.
• Get advice: Consult with financial experts to make informed decisions.

Once we understand our context, the first step is action, if we decide to invest our savings and that they generate a return on which we can live for in the future, the ideal is to do so in an instrument that generates passive income and then we must add the time factor.

By investing you won't get rich overnight, it consists of patience and perseverance, generating that capital that gives us the objective we set does not take six months or a year, but 10 to 20 years, or more.

What is passive income and why you should consider it

Passive income is a key concept for those looking to generate additional income without investing large amounts of time or continuous effort. It is a financial strategy that allows obtaining regular economic benefits, usually through investments, with a minimum of direct intervention.

Opting for passive income has several significant benefits:

• Financial Independence: It allows you to earn income without being tied to a daily job.
• Economic Security: It provides long-term financial stability, especially useful for supplementing retirement.
• Free Time: It frees up time that can be dedicated to other activities or personal projects.
• Capital Growth: With appropriate strategies, it is possible to increase initial capital considerably.

Here are some examples in which you may feel more than identified. Suppose a hypothetical case where you are in a “situation A” you have already been able to save about US $10,000 but we did not invest it, in 20 years we will continue with US $10,000. However, that money invested at an annual rate of 8% is transformed into US $46,600 in the same period. If this situation is not your situation because you don't have this money and you say “good luck to the one who was able to collect that savings” we answer you with the following “situation B” a savings of $100 per month, no matter how little it seems, is $1200 per year, which invested at 8% per year, after 20 years will become $60,500. That capital will already generate $4840 in annual interest or $403 per month.

With these cases, we want to explain how important it is to be able to invest and that the money works for you and not leave it “under the mattress” without generating passive income.

The Magic of Compound Interest

The results shown above are obtained from the ”The magic of compound interest” as it appears in financial books, which, to tell the truth, has more effort, habit and perseverance than magic.

Compound interest is a powerful tool for increasing your capital. It consists of reinvesting the profits obtained, so that interest generates more interest. Over time, this can result in an exponential growth of invested capital, as we saw in the examples.

Investment Strategies to Generate Passive Income

Traditional investments, such as fixed-term deposits or government bonds, offer security but with relatively low returns. In contrast, modern investments, such as cryptocurrencies or tokenized real estate investments, present greater opportunities for return with the same risks as the real estate sector.

Tokenized real estate investments: the alternative to your financial plan

Tokenized real estate investments represent an evolution in the financial market. They use blockchain technology to divide an asset such as properties into small digital parts called tokens, allowing investors to buy and sell shares in real estate in an efficient and secure manner.

At Reental we offer you to take a first step with just $100 and you can enter and participate, obtaining passive income based on the income generated by the property, such as rents, which are distributed proportionately among the holders of the tokens month by month.

Advantages of Tokenized Real Estate Investments

• Accessibility: They allow small investors to access real estate markets with low capital.
• Liquidity: They facilitate the purchase and sale of tokens, offering greater liquidity compared to traditional real estate investment.
• Transparency: Blockchain technology ensures secure and transparent transactions.

Take advantage of your extra pay to build a stable financial future

Strategically investing your bonus or extra pay can be the first step toward financial independence. Opting for stable and profitable investments, such as Reental projects, will allow you to generate passive income that will complement your income and provide you with long-term economic stability.

In addition, Reental offers you the possibility to diversify your investment portfolio to minimize risks and maximize profits. We invite you to invest in different assets (stocks, bonds, real estate, etc.) that protect your capital against market fluctuations and add up to a diversified portfolio that includes traditional and modern investments such as tokenized investments, balancing security and profitability. Don't miss the opportunity to grow your capital and secure a solid financial future.