Passive Income: Earn More Money With Little Effort


Do you want to work 40, 50, or even 80 hours a week for the rest of your life?

Good, neither do I!!

Do you want to have income coming to you in a daily basis with as little effort as possible?

So do I!!

One way to achieve that goal is through passive income. Passive income is basically income that requires minimal work from you to obtain a steady flow of money.

So what is the secret to passive income? It is very simple and anyone can do it, whether you are in a business, a student or even a retired person, the secret is BUILDING ASSET. The key word is asset.

Asset is anything that is owned, the value of which can be expressed in monetary terms. Assets is not something you can get overnight, it takes time and effort to build. However, in the long term the financial rewards can be outstanding. Instead of you working hard for your money, the assets could be working hard for you.

Overtime, you can leverage your assets and use it to obtain other assets. This way you will not be relying just on one asset but many others. The total return from all of your assets can be even more fantastic. For this to happen, you need to start building your first asset.

What kind of asset should you build? Build ones that you are familiar with so that you can reduce the amount of time needed to do your research and have a quick start. Preferably, it is something that will generate revenue and income. One important factor to keep in mind is that no matter what you decide to do, there are additional expenses to maintain it.

For example, a blog could be an asset. You could start a blog and write about topics that you are familiar with and are of interest to you. However, a blog takes time to build and requires effort on your part to market, write, and maintain.

One particular type of assets that is associated with passive income is real estate. Your real estate could provide you with a flow of income by renting it out. When the housing market is a sellers market, you could then sell your real estate at a much higher price compare to the price you brought it for.

These are just two of many types of assets that you can own that can provide you with a nice monthly income. Other types of assets are stocks (hopefully with dividends), mutual funds, bonds, published books, be a silent partner in a business, advertisement commissions, or even your reputation (which you can use to give paid speeches or lectures).

There are two basic types of passive incomes that I have not talked about in this article. I will talk about it in the near future and they are: Residual Income and Leverage Income.

Don’t miss it and I will see you again.

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April 16, 2008 | Filed Under Investment, Money Saving Ideas | 4 Comments 

Are You Ready to Retire?

A few nights ago, I was talking to Dave about the Social Security Program. Actually, it was more like ranting. If you notice in your paycheck, a portion of your earning goes to Social Security Tax but do you know that the program is running out of money. I’m not complaining about paying taxes but why should I pay a tax that is not going to compensate me when I retire. There are many things that I can do with “my” money.

The real question is why we are still contributing to Social Security when we (the one who is ACTUALLY contributing) will not benefit from it. Those that will benefit from the program are those who are retired and those fortunate individuals who will be retiring very soon. If you are like me that needs to work thirty or more years, you’re on your own because by the time we retire Social Security will be broke. There will be nothing left for us to enjoy. See why I’m a little upset, okay I lied, make that pissed off?

This lead to the next important question, “How many of us have retirement investment plans?” Notice I wrote “plans” instead of plan because just having one will not bring the full enjoyment to our later years. Many of us have 401K plan and relying just on your company is not enough. So, do you have another backup? I hope you do.

The reality is that things right now just plain sucks. If you wait till your golden years to invest, then I have two words for you, good luck. I’ve seen so many older generations working at places such as CVS and McDonald just to have enough money to live on. Don’t get me wrong, I’m not bashing at their situation. I feel a bit sad because one of them could be my grandparent or worse it could be me in the future.

Besides my company 401K plan, I also opened a Roth IRA. I’m not suggesting you follow my plan because I’m not a financial professional. You need to do what is right for you.

Why did I decide on a Roth IRA? Because when it is time for me to withdraw, I don’t have to pay taxes on the withdrawal since my contribution is already taxed. Who knows what my tax bracket will be in the future? I would rather pay the tax now and enjoy it later. However, if you need a tax break now, you can opt for the Traditional IRA and down the road you can convert to a Roth IRA.

No matter what you do, it is always good to be prepared and enjoy your retirement years with comfort and luxury.

Like what Dave always says, “Go get fat money.”

Written by Leah.

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April 10, 2008 | Filed Under Investment, Ramblings, Tax | 3 Comments 

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