11 Ways to Spend $100 in Monthly Passive Income

Most of us dream of finding financial independence so that we no longer need to rely on our jobs for income. The thought of debt free living for many is enough to motivate us to create passive income that can one day replace any forms of active income that we may have. While creating additional income is a critical component of becoming financially independent, there is another side of equal importance, which is lowering your expenses.

So once you become successful at generating passive income, it is important to have a plan for your earnings. If you don’t have a plan, then all of your hard work spent building your multiple income streams could be wasted. A very important part of becoming financially independent is to use your extra monthly income to pay down your debt. That way, your expenses continually decrease while your income increases.

Here are a few ideas on how you can use your extra monthly income to help pay down your expenses.

11 Ways to Spend $100 in Passive Income

Here is a list of 11 ideas on how you can spend your monthly passive income earnings that can help you become financially independent.

1. Cell Phone – Depending on your cell phone plan, $100 per month in passive income earnings should be enough to cover this expense.
2. Car Payment – Use your extra monthly income generated to pay down any car debt you may have. An extra $100 a month on a car payment can help you pay off this expense much sooner.
3. Entertainment Budget – Make a plan to use your passive income as your entertainment budget each month. Stick to the budget and only spend the amount of extra income generated on entertainment related expenses.
4. Gas – Set aside your earnings each month to help pay to put gas in your vehicle. Having this budget available will make it easier to afford the rise in energy prices.
5. Cable, Phone, and Internet – $100 a month in passive income earnings should be more than enough to cover at least one of these expenses, if not all. If you have a bundled package for example through a provider, then you may pay a discounted rate that is close to this figure.
6. Pay Yourself – Use the extra money to pay yourself at the end of the month. Instead of setting this money aside for an expense, use it to invest in your future and put it into a high yield savings account.
7. Utilities – Depending on the climate or region you live in, $100 could probably cover at least one of your monthly energy bills. Look at past billing statements to plan out a budget on expected costs for electricity, natural gas, water, or any other utility expense.
8. Mortgage – $100 may not seem like a lot each month compared to your mortgage payment. However, every little bit you can use to pay down your mortgage debt will put you one step closer to becoming financially independent. Paying an extra $100 per month on your mortgage could knock 5 or more years off of a 30 year fixed loan.
9. Medical Expenses – Many families are struggling with the rising cost of health care. Why not use your passive income earnings to help offset any medical expenses you typically have during a month?
10. Vacation – Save up your $100 each month for about a year in a vacation fund. Take your $1,000+ and plan a family vacation to build lasting memories with your children!
11. Christmas Fund – Similar to the vacation fund, save up your monthly earnings into a Christmas fund or a general gift fund to help offset seasonal expenses. Many families run up a lot of debt around the holidays, so why not offset that debt by using your extra earnings?

Next Steps

So now that you have covered at least one of your monthly expenses with passive income earnings, what are you planning on tackling next? Try and see if you can create a new income stream that can pay for another one of your monthly expenses. Keep repeating this process until your passive income earnings can cover all existing expenses!

What do you use your passive income earnings for?

Related posts:

1. Monthly Budget – July (2008)
2. Passive Income Monthly Reports
3. Monthly Budget – August (2008)
4. Monthly Budget – September (2008)
5. New Ideas for Reducing Monthly Food Expenses

Related posts brought to you by Yet Another Related Posts Plugin.

Tagged as: Debt Free Living, Financial Freedom, high yield savings account