Now, with all those dog owners across the globe buying your new ebook on how to help their pit bulls lose weight with Açai cleanses (the keyword research your man in Mumbai did determined that dog training and antioxidant weight loss were hot niches)--you can just check in every once in a while to make sure your outsourced VA is facilitating the transfers from your ClickBank account over to your checking account, and while you're not working, you can hang out in whatever fine restaurant his Internet research has determined is happening this month on your particular island of Fiji.
But when so many turn down leasing one and one-half acre for one Wind Turbine for each 80 acres, that lease certainly does not materially affect the rest of the Farm or Ranch grazing pasture and the lease pays much more than the farm crow or grazing pasture lease, just because some lawyer said the lease was too long: 30 years plus 30 year option = 60 years, and the wind turbine company has selling production/electricity contracts for the next 150 years – which is needed to obtain financing!
At some point in every value chain, value has to be created by a real human. No argument there. However, who says that a human has to deliver that value? Some very smart humans put in the work to create Google, but for the most part, they don’t have to do any work to deliver value to you, whether it’s search results or GMail or Maps. Your landlord put in a lot of work to afford the apartment you live in, to remodel it, and even to find you as a tenant. But now, he doesn’t have to do any work to deliver value to you: you wake up every morning in the apartment whether or not he works.
I am an English major and a herbalist with so many ideas and no extra income to fulfill them. I recently started renting my extra apartment in the attic with Airbnb. It’s amazing how fast I accumulated some money for few hours of work between guests. Now I want to persue all my dreams of opening an online herbal store, publishing my ebook of treating Ulcerative Colitis with herbs, blogs, and videos, and pretty much all of the ideas mentioned here. I will save this article as its really helpful for whomever needs some ideas…
I’ve never invested in real estate (except to live in), but am always intrigued by communities like FS who seem to have such a passion for it. My intrigue stems back to my earlier comments that the long term trends in appreciation in real estate are simply not very competitive versus equities, despite what Robert Kiyosaki had to say in his book, Rich Dad, Poor Dad.
The time commitment for real estate investing isn’t as continuous as with blogging but it can be a part-time job if you have enough properties and the wrong tenants. Sacrifice a little return for quality tenants and repair problems right the first time. These two simple ideas will save you a ton of time and turn out to be the more profitable solution over the long-run.
Self-publishing has the potential to be a very lucrative source of income. However, it does involve both an investment of your time and finances. It’s very important that you get the right help from the beginning. There are many considerations that may be outside of your expertise. Rory Carruthers, a sought-after book development, book launch, and book marketing consultant, says that six-figure launches require careful orchestration and planning. “Bestsellers aren’t just born out of great talent. They are also a product of thought-out marketing and well-orchestrated book launch campaign. It’s no longer enough to just write a good text. You need to think one step ahead and warm up your audience to the book even before you finish the first draft,” he said.
I just can’t seem to get my head around creating my own online product. When you talk about it, you make it sound like its mostly just about putting in the time and plugging away at it. Problem is I can never seem to come up with any ideas for a site or product that seem remotely unique or compelling or that I have any special knowledge about. The stuff I do know about is pretty commodity type knowledge that can mostly be found on thousands of sites on the internet already. Any tips on discovering what your “unique angle” is? I mean, you have a pretty compelling and somewhat unique personal story of working on wall street and then walking away at a young age.
I invest about 5% of my pre tax income in 401k that my employer matches. Have close to 70k in cash in checking. Also,I liquidated around 40k in my 401k and not sure where to invest that in (bonds vs stocks) because of stocks trading at record high. Have a rental property that is paying itself now and I will pay off the mortgage completely in 5 years. My immediate concern is the cash in checking acct that’s not doing much. Thanks for your reply and appreciate your work. I am learning a lot
Roofstock – Investing in rental properties is one of those passive income ideas that can be extremely intimidating, especially when it comes to finding tenants. Roofstock lets you buy properties with as little as 20% down that already have tenants living in them. That means you start getting paid from the first day of your investment. You don’t even have to physically visit the properties!
Let’s say you just decided to sign up for the Chase Sapphire Preferred® card. Once you had the card in hand, you could begin using it for purchases and earning cash back for every swipe. For every dollar you spend on regular purchases, you’ll get 1 percent back in the form of rewards. For dining and travel purchases, on the other hand, you’ll score a smooth 2 percent back.
Being able to generate passive income largely depends on your audience, and if they detect that you care more about making money than serving them, you won’t succeed. “Whenever I’ve seen people do something just for the money, they’ve failed because their intentions aren’t driving them in the right direction. It should always be about helping people and about the passion of making others feel better. The byproduct of doing that is generating money,” says Flynn.
That strategy seems waaaayyyy less risky than actively picking stocks of supposedly “reliable” stocks that issue dividends, which could be cut at any time due to shifting industry trends and company performance. Dividend investing feels like an overly complex old-school way of investing that doesn’t have a very strong intellectual basis compared to index investing.
Purchase the rights to royalties. Royalties are payments made for the use or sale of intellectual property, like a song, book, or trademarked product. These royalties are paid from the seller of the property to its creator. You can earn royalty payments either by creating the intellectual property yourself or by buying royalty rights from someone else. In the latter case, you can buy the rights for a lump sum and then receive regular royalty payments that will eventually return you your initial investment.
One day I thought to myself ‘This is BS! SURELY there must be other people out there in CyberLand who also need this info. I’ve spent money on subscribing to email product, purchased e-books and also downloaded lots of information which is provided by suppliers for free. However, it takes a ludicrous amount of my precious time reading the content, deciding whether it is worth saving or not, creating folders on specific subject matters, storing the data in those subject folders and it’s all eating away at my productive time. I’m NOT productive because I spend around 70% of each supposed-to-be business day just going through all this freaking content! If I packaged it up to on-sell to other people in a super-user-friendly way, surely I could make money to support myself so I can actually get on with my REAL job of building the website-with-blog I WANT to create on a subject dear to my heart?” (This subject happens to be astrology, about which I know a great deal as I have practised it professionally since 1998.)
Personally, my experience with Amazon thus far has been good - a few of my short eBooks generate steady passive income on weekly basis with zero additional effort from my side. One thing to note though - Amazon pays 70% royalty on each eBook sold only if your eBook is priced between $2.99 to $9.99. Less than or higher than that pricing structure, the royalty decreases to 35%.of your book’s listed price.
Good plan Chloe though I would say include some equity REITs in your real estate investing strategy as well. Mortgage REITs only offer cash flow while equity REITs offer price returns as well, which may be taxed at a lower rate. Real estate crowdfunding is a great new way to invest in real estate and can really help diversify a portfolio. Good luck building to your passive income.
The terms on private money loans can also vary from very short (a couple of months or even weeks) to years. Once the money is loaned to an investor the passive income will come in as long as the investor can meet their obligations. The work with private money lending comes in the beginning when choosing a private money lender and if the loan ever goes into default.
Many people choose not to take this route because they get intimidated by complex applications and technology. The truth, however, is that you don’t need a fancy platform or special software to create a powerful online course. Your lessons can be sent out as emails, followed by action plans and/or video tutorials. This approach can be even more effective as most people check their email on daily basis. In fact, that’s the exact approach I took with some of my freedom eCourses.
I own 11 rental properties and they require a lot of work to buy, repair and rent. Once they are rented the rental properties become much more passive and my 11 rentals produce over $6,000 in monthly income. Real estate investments like REITs, turn-key rental properties and private money investing are much more passive investments, but they don’t produce as high of returns as I get. There is usually a trade-off on how much money you make on your investments versus how much work you are willing to do.
Self Publishing is mainstream today. When you purchase an eBook off of Amazon there’s a pretty good chance you’re buying a self-published book. Self-publishing is also ridiculously easy. I tried this a few years ago and couldn’t believe how simple the process was. To self-publish a book you’ll first need to write and edit it, create a cover, and then upload to a program such as Amazon’s Kindle Direct Publishing. Don’t expect instant success though. There will need to be a lot of upfront marketing before you can turn this into a passive income stream.
Once your audience has grown and you have validation that you’re offering them value, there are many ways to create passive income. You could sell digital products like ebooks or courses, take up affiliate marketing in which you promote other company’s products and earn a commission when you sell that item to your audience, build a community and charge people to be a part of it, create software and sell that, among other avenues. Ask your audience directly what would serve them best, or look at what they’re saying on Twitter, Facebook or other websites, to find out what problems they have and how you could help solve them.
“The biggest surprise is real estate being second to last on my Passive Income Ranking List because I’ve written that real estate is my favorite investment class to build wealth. Real estate doesn’t stack up well against the other passive income sources due to the lack of liquidity and constant maintenance of tenants and property. The returns can be huge due to rising rental income AND principal over time, much like dividend investing. If you are a “proactive passive income earner” like myself, then real estate is great.”
Rentals, just like stocks, throw off cash. With rentals we call that cash “rent”, and with stocks we call it dividends. A significant difference however is that the S&P 500 has appreciated at ~6% per year (above inflation) for the last 100 years…..Real Estate has had almost 0 growth above inflation. So are rents higher than dividends? Maybe, maybe not. But unless you got one heck of a deal, the delta in rent over dividends will have a very tough time making up for the 6% per year difference in appreciation.
Those who choose to focus on passive income will need either family money, funds from investors, or the nerve to borrow large sums by taking on debt to fund the purchase of assets. Consider someone who takes out substantial bank loans to build an apartment building or buy rental houses. Although this can turn a very small amount of equity into a large cash flow stream, it is not without risk. When using borrowed money, the margin of safety is much smaller because you can’t absorb the same degree of setback before defaulting and finding you balance sheet obliterated. https://i1.wp.com/www.nextnaijaentrepreneur.com/wp-content/uploads/passive-income.jpg?fit
Money from dividends, for example, are taxed at a lower rate than money from a job. A business owner who works in the company she or he founded would have to pay more self-employment payroll taxes compared to someone who merely had a passive interest in the same limited liability company who would pay only income taxes. In other words, the same income earned actively would be taxed at a higher rate than if it were earned passively.
What I’m doing: I view passive income as funny money to keep myself sane during this long journey. I estimate 2-10 years to get to my goal depending on how active I am. The dollars created are just points one can accumulate. I’ve made passive income goals for each passive income type and check in at least once a year like I am now to make sure I’m on track. Passive income is also carefully managed to minimize tax liability. When you can build a buffer for a buffer, you are then free to take more risks.
Hi, it’s probably been brought up before, but the statement “you can’t touch pre-tax retirement accounts without a penalty until 59.5” is incorrect. You can touch the traditional 401k accounts with a SEPP (substantially equal payment plan), and not pay the 10 percent penalty. You can also touch a Roth without the 10 penalty using the same strategy, although I understand you will pay taxes so you lose the Roth’s advantage. When I found this out, I stopped contributing to Roths because I wanted to retire early. Who knows if they will even live to age 59.5? So many people don’t!
You don’t have to invest individually to take advantage of dividend paying stocks (i.e. investing in an ETF like DVY, which currently has a 3.16% dividend yield – almost 4%). And while your math is indeed correct, there is more to dividend paying stocks that just the math. The reason the companies pay dividends is typically because of their underlying strength, steady growth, etc. These companies can be good investments for the long run. As such, it might not make sense to sell.
Udemy is an online platform that lets its user take video courses on a wide array of subjects. Instead of being a consumer on Udemy you can instead be a producer, create your own video course, and allow users to purchase it. This is a fantastic option if you are highly knowledgeable in a specific subject matter. This can also be a great way to turn traditional tutoring into a passive income stream!
Invest in dividend securities. Some stocks provide shareholders with regular payouts called dividends. For very large, old companies, these dividend payouts are made for consistent amounts and can amount to a substantial income if you own a large number of shares. Look for companies that are very established and have been paying dividends for a long period of time (more than 10 years). You should be able to find this information with a quick online search.
Hello from the UK! Fundrise and Wealthfront are only available to US residents it seems :(. Any other readers from the UK here? The only thing I have managed to do from Sam’s list is getting a fixed rate bond (CBS is having a 5-year fixed rate at 2.01% – not great but the best I could find ). Don’t know if the FIRE movement will ever take off here but would love to trade tips/ideas on how to reach FI and have the freedom to consider alternative rythms to living.
All ideas take some amount of time and money to come to fruition. Some people have a lot of one of these, but not much of the other. A lot of successful ideas have started when one person had the resources that another did not. And many businesses have been started using 0% loans from credit cards to fund their concept and keep the business going until it achieved success.
Pardon for being a bit of a newbie to true investing outside of a 401k. What about those of us who have 1) Just been laid off, and unable to find work due to lack of a degree (apparently 17 years in the industry with 5 certifications is just simply not enough – which is okay. It gave me the kick in the arse to get back to school finally) 2)Have three children to support (age 11 and under), and 3) Oh yeah – cannot find work. What do you recommend when the only source of positive revenue has ceased to come in and you now have less time than ever – due to responsibilities (i.e. doing well in university = academic scholarships means investment in time, plus spending 20 min breaks with kiddos) – to create positive sources of income ? I truly am wondering from an investor’s point of view how you would handle the pivot point of life if ever you had been faced with it. I realize this may be only imaginary, but at this point, I welcome your “what ifs” scenario on this one. You’ve truly done amazing work and I thank you for being so transparent.
He used "house-hacking" and "live-and-flips" to increase savings and maximize earnings, and by 2007 he and his business partner owned 50 rental properties. Save for a few setbacks during the financial crisis, Carson continued growing his portfolio over the past decade, and today he manages 90 rental properties, mostly in and around his hometown in Clemson, South Carolina.
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