You've probably heard that the best way to make money is passively.
Where do you start?
How do you make passive income?
How much capital do I need to start this?
If you want to know the answers to these questions...keep reading.
You’ll soon learn how to put your money to work for you, instead of working for your money like society has programmed us to do.
1. Speak With Someone Who Is Financially Successful
Finding someone who is already successful is the smartest shortcut.
Before you have this conversation, make some notes on what you want to learn.
Think of your:
-Short-term financial goals
-Long-term financial goals
-How you plan to accomplish your goals
-Easiest way to save your money
-Easiest way to invest your money
-How to manage your money
-How to plan for retirement
-How to insure yourself & your loved ones
As you reach out, offer to buy them lunch and let them know you respect their accomplishments and would like to learn more.
People can be jealous of successful people, so it’s always nice to talk to someone who acknowledges and respects their success.
If you have negative beliefs about money or being rich, that is one way to guarantee you will never sustain wealth.
2. Start Budgeting Your Money
Keeping track of your spending is a great habit. Budgeting can allow a person to relax and feel comfortable knowing they are on the path to where they want to go.
Some categories of expenses are…
Rent or mortgage
Electricity, gas or phone
Food and groceries
Transport, car or public
Family costs, schooling, sports, etc
Car / Student / Personal Loans
For your convenience, the following apps are great! Mint, Zeta and YNAB.
3. Invest In A 401 K Or An IRA Account
Both of these accounts can contribute to tax deductions.
The difference is a 401 K is between you and your employer, where a portion of your income will be set aside and invested into a mutual fund.
An IRA account is an individual retirement account. These are great if you don’t have an employer or you don’t want to participate in an employer sponsored program.
These accounts can have some limitations, however, such as how much you are allowed to add into it each year, and the control you have over how your money gets managed.
Invest In The Stock Market
You can start investing in the stock market, with as little as $1000. It is best to add to this account every time you earn money, even if it doesn't seem like much. Creating the habit is the most important thing.
There are literally passive investment options strategies that allow you to “set it and forget it” so you are basically making money while you sleep.
4. Some Alternative Passive Income Streams
Passive Income streams are great because they really don’t take much effort once they are set up, and typically run even when you sleep.
Here are a few examples:
Despite the chaos of housing prices going up and down, Real Estate is a good option for people interested in long-term returns from their money. Unlike the stock market, the capital is usually much higher to get started, and the process of closing a deal can take months.
Ideally the goal is to have the rent from your property, exceeding its monthly expenses, loan repayments, damages, etc.
Real Estate Investment Trusts (REITs)
REITs are good for people who are not willing to take the risk of buying property or those who can’t afford it. REITs own and operate real estate that can produce income.
The one downside besides the risk is that REITs are taxed as ordinary income, so it could push you into a higher tax bracket.
5. The Easiest Passive Income Stream Available Today
Seven years ago Jessica Hernandez dreamt of replacing trading time for money with a passive income stream. After spending hundreds of hours and tens of thousands of dollars she eventually settled in her "Switch Method" of investing in the stock market. She then began teaching her friends and grew a community of clients, who all wanted to learn how to build a passive income stream to one day replace their jobs, or retire much sooner.
To date, she has helped dozens and dozens of students finally feel confident in the stock market, even despite most of them starting with zero experience, thanks to the strategies she uses.
If you’d like to be able to start making money from anywhere you can take your phone, the easiest thing you can do is build a passive income stream by learning how to invest in the stock market with a strategy that takes less than an hour per month.