I woke up yesterday to find some emails containing passive income in my Gmail inbox. I received $97 from Fundrise, $22 from Direct2Digital (books), and $60 in dividends.
There is nothing like receiving money you don’t need. To earn passive income, you do the work once (invest or write) and continually reap the rewards.
Why do you need passive income today? The workforce is “going to hell in a handbasket.” Your employer is simply not going to pay you what you are worth.
Your education will not lead you to the promotions that will change your life. In fact, there are no promotions that can change your life.
Home Maintenance Budget vs. Emergency Fund
If they pay you a lot of money, they want a lot of work. This may mean working extended hours or being available 24 hours a day—there is no free lunch.
The only way to get ahead is to make money while you sleep. You must create, buy, or build assets that continue to pay you, even as you sleep, play, or enjoy your family.
Getting started with passive income. The goal of building a passive income stream is to retire with it eventually. However, these income streams take time to grow.
To understand passive income, you must understand the principle of compounding. Greatness compounds over time, but so does laziness.
Home Interest Loans vs. Interest Rates
I received six cents in my first month of passive income investing (July 2019). However, it was the best six cents I have ever earned.
As you can see above, I received over $200 yesterday. I cannot emphasize how amazing it is to wake up to having more money.
Passive income isn’t about money; it’s about freedom. People misunderstand the intent behind passive income.
They believe they need passive income to buy more things or nicer items. However, once you begin to build your income streams, you’ll determine it’s about time, not money.
Are You Ready to Become a Landlord?
You see, your assets will begin to do all the heavy lifting in your life so that you don’t need to over-extend yourself.
For example, how long will it take you to save $50,000? What if you could use home equity from your house to gain that same $50,000?
How many hours will it take you to earn $2,000? With $300,000 in an income-investing portfolio, you can make that same $2,000 per month.
Time is our most valuable resource, and we cannot continue to spend it all in the workforce. When we learn to buy our freedom, we can pass this information on to our children.
How We Plan to Retire on Dividends 4
Building a stronger generation. I recently met with my 18-year-old cousin. I gave him $1,000 to invest in his Dividend Debit Card (Cash app).
I will double the amount every time his monthly dividend stock (AGNC) pays him. This gives him the incentive to stay invested in the stock market.
I want him to understand the feeling of receiving money from thin air—the power of passive income and valuing time over money.
What money habits are you passing on to your children? If you do not understand passive income and how to create it, you make your children indentured servants.
Self-Storage vs. A Recession
We can do better for our children, but we have to try. Nothing in this world is free, and passive income comes at the price of self-education.
So where should you start? The best place to start is by getting some books. I know I know; reading is a four-letter word in this day and age.
However, you’ll need to understand the principle of adding value and exponential growth to invest and build over an extended time.
Bond Growth Investing: Bonds to the Rescue
Some good books to start with are, “Rich Dad, Poor Dad,” “Rich Dad’s Cashflow Quadrant” and “Rich Dad’s Guide to Investing.” These books are all from Robert Kiyosaki, my favorite author.
Dividends for the win. The most accessible form of passive income is dividend investing. However, it will also require the most money to be effective.
You can start dividend investing with $5 per week if you stay consistent and keep learning. Dividends are the key to escaping the rat race.
Rental income is available. Most people want to avoid owning an investment property. That’s okay, but you still need to build rental income.
You can do this by renting a room or letting someone use your garage. You can also add storage space to your yard or build a dog park.
Trade School vs. College vs. The Military
I love royalties. To create is a fantastic feat that most people will never experience. It is even better to create for an audience and have them purchase your works.
I have been building royalties for over two years, and the process improves daily. I can open accounts on new platforms and recycle my words.
Once I do the work, I can spread my creations over unlimited platforms to continue growing my audience.
Business is the way to grow. You also want to start an automated business that can run itself. At first, it will need you to run it; but the final intent is to automate it via management, automation, or outsourcing.
5 Takeaways from “The Independent Homeschool”
You can start a vending machine, arcade, or rental car business. How about becoming a property manager (there is always a need for good ones)?
Putting it all together. The key to passive income is to leverage all of these types together. You do not need to be great at all of them.
Let’s say you have $100,000 in home equity. You can pull that and buy a car to rent ($30,000), a vending machine ($6,000), and put the rest ($64,000) in an income-investing portfolio that earns $430/month.
Your mortgage will go up by, say, $400/month. However, you can get a roommate who pays you $1,000 monthly.
Saving for a House Down Payment #4: Couple, Big City
By leveraging this $100,000, you created four income streams that could total $1,000 in cash flow. You can reinvest this extra cash into more dividends or purchase more cars or vending machines.
Conclusion. Passive income is a mindset. It’s not about quitting your job haphazardly. It is about using your best resource (your brain) to buy the best resource (time).
Don’t let the internet headlines of earning $11,000/month of passive income over three months fool you. People can have great months and maybe years, but you want to build long-term revenue.
High-Yield Savings vs. CD Ladders vs. Series “I” Bonds
If they can build an income fast, anyone can do the same. You want to create something that most people cannot follow or copy.
Most people will never earn $100/month in dividends, let alone $1,000. You can do this relatively quickly if you put in the work.
I have never felt more special than receiving my various types of passive income. This money is a tool I used to buy my freedom for the workforce.
As I pass this information on to the next generation, I see how it can change their lives dramatically. They go into the workforce knowing there’s a way out, and it’s not a 401K or social security. Good Luck!
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Disclosure: I am not a financial advisor or money manager, and any knowledge is given as guidance and not direct actionable investment advice. I am an Amazon Affiliate. Please research any investment vehicles that are being considered. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article. All Right Reserved Military Family Investing
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