We live in an exciting time. You can literally make money while you sleep. As an entrepreneur, you don’t get a steady paycheck. You can create financial stability when you create multiple streams of income and make some of them passive. Use these steps and tools. Don’t just run towards the online because these are still a lot of opportunities offline. Create systems and don’t try to do it all alone.
"I found out at about PJ because we happened to be in the same place at the same time ... some people call that a coincidence; I call pure and solid good luck. We quickly learned that we both were in business to help other people succeed, but little did I expect it would be PJ who helped me (instead of the other way around). I am now on target to have over 40,000 students take my online continuing education and training course. And all because of some simple tricks-of-the trade taught by PJ. I would recommend PJ to people who need to create an online business and also want to ramp that business up so that it can become a full time income. In Great Faith, Cathy He helped make it possible for me and when you put into practice what he teaches, it can possible for you, too. "
We’ve discussed how to get started building passive income for financial freedom in a previous post. Now I’d like to rank the various passive income streams based on risk, return, and feasibility. The rankings are somewhat subjective, but they are born from my own real life experiences attempting to generate multiple types of passive income sources over the past 16 years.
You can find dividend stocks using Google Finance Stock Screener which is free to use. Set the search criteria for the P/E Ratio, and Dividend yield (shown as a percentage) criteria. You can set minimum and maximum values; in the dividend yield box, set it between 2 and 100. This will search for stocks that pay dividends worth between 2-100% of the current stock price.
The abstraction ignores the linear throughput of matter and energy that must power the continuous motion of money, goods and services, and factors of production. Matter and energy enter the economy in the form of low entropy natural capital, such as solar energy, oil wells, fisheries, and mines. These materials and energy are used by households and firms a like to create products and wealth. After the material are used up the energy and matter leaves the economy in the form of high entropy waste that is no longer valuable to the economy. The natural materials that power the motion of the circular flow of the economy come from the environment, and the waste must be absorbed by the larger ecosystem in which the economy exists.
Truebill is an app that helps you save money by identifying recurring subscriptions and other bills and helping you cut costs by negotiating better rates and fees. One of their partnerships is with Acradia Power, which has the potential to save you up to 30% on your electric bill. It searches for better power rates in areas where competition is allowed, and it locks in the better prices for you.
That is a nice list of passive income sources. Actually, the most up-to-date list of dividend growth stocks is the list of dividend champions, maintained by Dave Fish. The list of dividend aristocrats is incomplete at best. For example, the dividend champions list has over 100 companies that have managed to increase dividends each year for at least 25 years in a row. The list of dividend aristocrats has no more than 50 – 60.
You can uses tools such as Wordpress for your website platform. MailChimp to collect email addresses. Clickfunnels to create funnels and landing pages that are completely automated. Stripe to process payments. These are just a few tools I use but there are many more options for each part of your business. Find the ones that work for you and help you create systems. (Disclaimer: I was not paid to mention any of these companies).
The coolest part for me is a little part called Taxbot. It’s a cloud on the site that tracks all of my business expenses and you can download that to your phone, take a picture of your receipt and toss it. It also will track your mileage via GPS for you, when you need to. This has saved me so much time, and I feel so much more organized. You wouldn’t believe what I deal with during the Tax Season. Boxes and boxes of receipts, trying to piece it all together.
This is an interesting take and good advice for those who probably do not need to ever worry about becoming destitute. I’m sorry but too many of your options including your own list of income require quite a bit of initial investment/capital and these suggestions are useless to those living paycheck to paycheck. I’d like to see the average low to middle income household purchase additional property for rental, invest in their portfolio (if they can even start one), or even afford to have a vehicle or room to rent. Far too first world of a solution for the general public.
I would throw in some caution here: if your spouse works at the same company, or in the same industry as you, you are not diversified, and should something happen, you could be in a world of hurt. Companies do go out of business, companies do lay employees off. There is nothing wrong with working together, but realize that you are not diversified and you should be trying to maximize other income streams as a result.
If you’ve landed here, then you likely already know that generating passive income online is a behemoth to those that have mastered the art of marketing on the internet. Yet, to most, it also feels very much like a pipe dream. With so many supposed experts championing the next best thing when it comes to earning “millions while you sleep,” where are we supposed to turn to come up with the best ideas for generating hefty amounts of passive income online?
Let’s say a company earns $1 a share and pays out 75 cents in the form of a dividend. That’s a 75% dividend payout ratio. Let’s say the next year the company earns $2 a share and pays out $1 in the form of dividends. Although the dividend payout ratio declines to 50%, due the company wanting to spend more CAPEX on expansion, at least the absolute dividend amount increases.
Unfortunately, it took a while for the real lessons to sink in. I was probably 20 or 21 when I read Rich Dad, Poor Dad the first time, which means I wasn’t exactly sure who I was yet. I knew I wanted to work hard and make money, but I wasn’t sure how. This made me a prime candidate for multi-level marketing pitches, and the dream of “getting rich quick.”
I’m selling a piece of land which costs me $7k in negative cash flow due to property taxes, I wrestle with the idea of using the 1031 exchange and put the proceeds into a rental. In this manner, I would save $70k in capital gains tax, and turn my negative $7k in cash flow into something positive. The idea of being a landlord though pains me. Just don’t know if it’s worth the hassle; clearly not if I make it back to the corporate world.
Active income is needed because you know you can always push away to bring in steady income. Passive income is needed to bring in a little extra on the side. You must ensure to never put all your eggs in one basket. When generating multiple streams of income, you must have different sources to rely on – because in the end, nothing is 100% reliable.
However, you should pick a niche and blog about that. If you're launching a money related blog, maybe it'll be about how to make money in real estate or simply how to make money online. Pick the niche and stick to it. If it's a diet and fitness related blog, maybe the niche is the Ketogenic diet, the Atkins diet or some other form of diet or fitness.
If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Having a roommate is the more passive of the two, as being an Airbnb host will require more work in the form of turning over the room between stays. This is a super painless way to earn $500 to $1,000 a month without much effort – you may even be able to cover your mortgage payment with this extra income!
You’re right Ed, it does require capital to get income from a rental property. However, I started hustling when I was a teen, baby-sitting, teaching younger kids the piano, doing homework with middle schoolers, being a French and Spanish tutor, none of which requires an initial investment. As do pet sitting, housekeeping, lawn mowing, house painting, and many gigs around.
How do you return $103,000 a year in dividends and interest on a total investment of about $ 1.2 million in stocks and bonds? Makes no sense to me. Am I the only one befuddled by this? You even state a high percentage of those pay no dividends. What am I missing? A reasonable return on income generatimg stocks and bonds is closer to 4%. Even grossing up for net tax effect of munis does not get to anywhere near these returns,
This is another way of ensuring regular income for a period of time. Let us say, you are uncomfortable with the idea of investing in high dividend yield stocks as they generally do not give price appreciation. Also, there is no assurance on dividend yields as dividends may fall if the profits of the company fall. Another way out is to invest the money into a debt fund and pay yourself through an SWP. Let us assume that you did the same SIP and ended up with Rs.1.41 crore at the age of 45. Now you want to pay yourself a regular income for a period of 15 years till your retirement. Here is how it will work.
The best resource for publishing your ebook would be through Amazon’s Kindle Direct Publishing (KDP) program. Clearly, Amazon is the leader when it comes to digital book sales. However, be sure that you do the proper research before trying to publish an ebook and ensure that your topic has a big audience, but that it’s not too big. You don’t want to get lost in the fray.
We pitched to an angel investor group. They were very excited about the idea but wanted to know who amongst us (doctor, accountant, salesman) was doing the coding. When they heard we were outsourcing it, the wind went out of their sails immediately. They did want to meet with us again once we brought a coder on board but that person proved elusive to find. Coders in our area are looking for the steady paycheck, not willing to gamble on a startup.
There are many people who get paid vast amounts of money to become the CEO of a company, play professional sports, or star in a movie. Earning a high active income is often a lot of hard work and requires a dedication beyond most of us. It’s also limited because no matter how much money you get paid you still need to show up to work to earn your money.