- PASSIVE INCOME: 5 Ways To $1,000 Per Month
In this article, we are going to be looking at there are two fundamentals about passive income we need to cover first as then everything else will make sense.
I’m excited about this one as it’s a topic I am truly passionate about, and that is passive income. Passive income is the true path to financial freedom.
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However, even to this day, I still find a lot of misleading information out there. İ typically find that people are not willing, to tell the truth when it comes to passive income. The good and the bad. So I have a dilemma.
Should I copy other youtube channels and hype up just how amazing passive income is? All you have to do is buy this special software, and with a few clicks of the mouse, you too can be making oodles of money passively all while you sleep. Or do I tell you the truth? Which isn’t as appealing, but it’s actually good for you. İt’s a little bit like selling sweets and candy or vegetables. One sells a lot better, but the other one is actually good for you.
Okay, I’m gonna go with vegetables, and this is what I would tell my close family and friends about passive income.
And then we’ll go through five great ways to make a thousand dollars a month in passive income. As always, if you do find anything useful in the article, be sure to drop alike, and that’s always very much appreciated.
Okay, so fundamental one.
And this has to do with the two main ways in which we make money earned income and passive.
Income earned income is money that you make in a job, and passive income is money that you make from a business or investment. Now the narrative that I hear these days is that earned income is some terrible thing and that all you’re doing is making someone else rich. And that passive income is an amazing thing that has no faults and can do no wrong. So here’s the first truth. I am going to flip the narrative and say passive income sucks. What? Let me explain! So first up, we have earned income.
And the thing is about earned income in the short term. It is excellent. And this is not something to resent but something to really appreciate. Think about it. İn the vast majority of jobs, you can earn a thousand dollars a month in your very first month. And also, this money then pays for your rent, your mortgage, your food, your lifestyle your recreation, but then yes, in the long term, this is not a great option. As you’re basically selling time for money, it means you can never stop working without getting paid. So in the short term, earned income is awesome. And it pays you straight away. İt pays for your house, your travel, your food, your clothes, your recreation, and you will likely hear a thousand dollars in your very first month. So we should be very grateful and not resentful of earned income. But yes, in the long term, it doesn’t create financial freedom as you’re stuck selling time for money. So if you stop working, you stop getting paid.
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And in the short term, passive income sucks. And why is this? It’s because to generate a substantial amount, you’re either going to need hundreds of thousands of dollars, or it’s going to take 10 to 20 years. And this is what most people won’t tell you. But on the flip side, passive income in the long term is the one to go for as the income is not tied to your hours. So this is what creates true financial freedom. So as you will soon see in the short term, passive income sucks.
To generate a substantial amount, you either have to invest a couple of hundred thousand dollars, or it’s something that you’re going to have to build up over 10 to 20 years. Having said that, you can generate a small amount of passive income virtually instantly, which brings us nicely on to fundamental too. When it comes to life and certainly with investing, nothing comes for free. There will always be two ways in which you have to pay.
You will be playing with your money, or you’re going to be paying with your time. Unfortunately, there is no free option. So with any passive income strategy, you’re going to have to pay with either time or money. And as we go through these five ways to make the passive income, you will have the option to get it instantly if you can pay with money, or you’ll have the opportunity to pay with time. And trust me, I would love to show you a simple system where you could just click a few buttons, and it would rain down passive income, but unfortunately, it doesn’t exist. Think about it if it did, word would get around, and we would all be doing it. Okay, so with those two important concepts out of the way, five ways to generate a thousand dollars a month in passive income, let’s do this.
This was one of the first ways I began to generate passive income. If you have a love for writing, you can turn that into a business and start generating passive income. And the great thing these days is that it’s never been easier to become a published author. You can self-publish your books with amazon, apple, or google. İ tried this out a few years ago, and even to this day, I’m still making book sales every single month. And although I’ve been able to generate a few thousand dollars in sales from countries all around the world. I personally didn’t have the passion for writing, so I didn’t continue this to a thousand dollars per month. And nothing to say just because I didn’t do it that it can’t be done. There are many people doing this where it is their primary income source. This one, you will be paying your time. It is hard work. You think you only have to write the book once, right. But no, you’ll probably have to go through your book several times. You’ve then got all the editing, all the formatting, the design work, and then having to go through the publishing process. I’ll put a link in the description for anyone curious about the books that I have published, and this one is really going to suit someone who enjoys the writing process. And then the idea is that you keep writing books, and over time you’ve got a large catalog of assets all generating you passive income. And the phrase is you do the work once and get paid over and over again.
Okay, on to number two.
Many of the more established businesses out there will pay out money in the form of dividends to all shareholders. So just by owning a company’s stock, you can receive a payment. And this is normally quarterly or every six months or once a year. For example, just by owning stocks in these companies at & t t and twill pay you a 6.94 percent dividend. Exxon Mobil will pay you a six-point one-four percent dividend. And the main man himself, Warren Buffett he recently invested with Verizon. And they pay a 4.31 percent dividend for all money invested.
So let’s do the math to make one thousand dollars per month in passive income, and let’s take the higher option of at&t to make a thousand dollars instantly you would need to invest 180 000 dollars. And obviously, most people don’t have a hundred and eighty thousand dollars just sitting around. So this is likely something that you would build up over time over 10 to 20 years. See what I mean about passive income sucking in the short term, and the main risk you have with dividend stocks is that these companies can go down in value. So it’s smart to diversify across a few different companies. But having said that, with just a hundred dollars, you can make your first seven dollars in passive income, and it’s quite fun to see the amount building up every single month.
Okay, on to number three,
Living in a world of zero interest rates, unfortunately, traditional banks are also giving low-interest record rates on their savings accounts. The good news, however, is that we have these new and upcoming companies in the crypto space. And they are able to offer their customers up to 9.3 percent just by keeping your crypto on their platform. And how are these companies able to do this. Well, basically, they will be lending out that money at an even higher interest rate. Similar to what banks do. One of the best companies out there which I am using myself is called block fi. And if you buy and hold stable Coins like USDC and USDT, then you can earn a current annual interest rate of up to 9.3 percent. And because these are stable coins, they’re not going to crash in value like bitcoin as they are pegged to the us dollar and are designed to be tough. Just note that these rates are correct at the time of this writing but are subject to change at any time. And also, now this isn’t as safe as money in the bank. As currently, your money isn’t insured. But again, this could change at any time, so make sure you check.
So let’s do the math. So to make a thousand dollars a month instantly, you would need to invest a hundred and thirty thousand dollars. This is still pretty good, or again this is something that you would likely build up over time as your money is compounding.
Okay, on to number four!
Owning a rental property is one of the best ways to generate passive income and have an asset that will appreciate over time. House hacking is where you live in one of the rooms, and you generate passive income by renting out the other rooms. And when done correctly, not only can you own your own property, you can have other people paying your mortgage. You get to live in it for free, and you can make some passive income on the side. Here is an example. So this here is our three-bedroom house and let’s say the value of the home is worth two hundred and fifty thousand dollars. The deposit that you’ll put down will be fifty thousand dollars. Let’s say ten thousand in fees and taxes, so you’re gonna borrow money from the bank, get a mortgage, and your deal will be two point five percent for thirty years. This means your mortgage payment is going to be seven hundred and ninety dollars. Now you live in one of the bedrooms, and you rent out the other two for 500 dollars each. So this is where you get your 1 000 dollars per month in passive income. So it’s the passive income that pays for your mortgage and also gives you a little extra to help cover the bills. And this is how you can have your own house. You get to live in it for free other people pay the mortgage, and you have a little bit leftover. So these numbers will change depending on where you live, but this is the concept of house hacking.
A great benefit we have right now is that you can become your very own tv channel. You can partner with youtube, where you create the videos and youtube provides the advertising, and you both share the revenue. Currently, you would get 55 percent, and youtube gets 45 percent. Now my best advice would be to create a channel that you have a passion or strong interest in. And the aim of the game is to make the most valuable, most useful videos you can for other people. And the more practical and useful that it is, the more people watch your videos and the more money you make.
It truly is a perfect win-win scenario where everybody wins. Now with the youtube business, you won’t have the option to pay with money. You’re going to be spending with your time. And the truth is is that you’re going to have to work harder than you ever have before. For me, it took about six months of full-time work, including evenings and weekends, to get it to one thousand dollars per month. But then the great thing is is that it quickly compounds. And from just the next month for me, it jumped up to over six thousand dollars. And it hasn’t come down since. And this is my personal favorite method as to where you can get the equivalent cash flow of owning a 10 unit apartment building for virtually zero money, a couple of hundred dollars. And in only seven months, not 10 to 20 years.
And for anyone screaming at the computer saying your youtube business is not passive income because you’re working over 40 hours a week. And yes, creating a video is active, but then it’s like writing a book or building up rental properties. As soon as you hit publish, it becomes a passive income asset that begins generating income over months, if not years, and you move on to your next video. And the idea is is that over time, you’re building up a large portfolio of assets, all generating you passive income over time.
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- Date of publication:
- Thu, 10/14/2021 - 10:16
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