Over the past few months, I have changed my investment strategy significantly. As I mentioned a couple weeks ago, I am now investing in several dividend-producing assets to see which investment produces the highest return. I call it a challenge, but it is ultimately a tool for analysis. Essentially, I will track my progress so that both you and I can be better informed investors going forward. Why invest more money in something just because it is the traditional way to do it when you can be getting a better return elsewhere? I plan to update everyone on the status of this challenge every month (mid-month), so be looking for that update soon.
As promised, I am providing my first update on my attempt to find the best source of passive income. It was a month ago (almost to the day) that I set out on a goal to develop multiples passive income streams. While a lot of things have been set in motion, I am still far away from having a great view on which stream is best.
One of the things that I like to do on this site is to provide creative ways to build passive income. Part of that is in part due to the fact that I think it helps others think outside the box. The point is simple. You can build up passive income if you dedicate enough focus to doing it. Focus and energy to stay committed toward a goal. This isn’t an easy achievement by any means. It takes dedication and hard work. I may make it sound easy with all of the different streams that I am investing in now, but it’s not. One of the biggest ways that it is hard to continue working towards these goals (short-term progress and long-term goal of financial independence) is to avoid spending more money.
When building up your passive income streams, it is important to know what you are doing with your money. If you are diversifying your income, it is likely that you have multiple ways of generating income. Whether it is originating from dividends, peer to peer lending, rental properties, or another source of passive income, you need to know what you are doing with it once you receive the cash.
About a year ago, I set a goal for myself to seek early retirement as aggressively as I could. Part of it is knowing that I had at least two years left at my current job and living at the same place while my wife finished her graduate school. It is now a year later and I have a little over a year left before we need to make the next big decision in our lives. Most likely, it will result in us moving, but that leaves me with an even bigger decision.
Earlier this week I published my goal to earn $8,000 in passive income. I have come to realize that my projections are overly ambitious and to make things worse, didn’t account for my hopeful home purchase in the next couple of years. Find out how buying a home will affect my ability to develop passive income streams.
Recently, I have been looking at new and used cars. Part of what got me interested was looking at some of the new hybrid cars that available. I was looking at all brands of cars, including some of the honda cars for sale. I know that buying a new car is a dangerous game of lifestyle inflation…but there is a lot of marketing aimed at consumers, trying to convince them to buy a new car for all the emotional reasons. It’s hard to ignore sometimes, if we are honest with ourselves. You know what I am talking about. That sleek, new design. The smell of a new car. These are all pleasant things. It’s hard not to buy into these subliminal messages.
Investing in real estate is an exciting step towards financial independence. It’s something that I am working on doing without having the hassle of day to day management. While some people go through the process of making it more passive through a real estate manager, I am going an even more passive route. I am investing in a limited partnership. For those of you who don’t have the same opportunity as I do, you may be thinking about buying your own property in order to diversify your investments. If you ask me, this is a great idea. Yet, just because I am a huge supporter of real estate investing, doesn’t mean that you can do it without considering every minor detail. In fact, there are many things that you need to consider before making the leap.
The average Joe would probably tell you that any savings that he has accumulated over the years are simply kept in the bank. More often than not, he would keep them in a regular savings account. The word investment scares many people, and many people have some misconceptions when it comes investing their assets. For example, some people think that it can be difficult to do, that you need to constantly keep an eye on them, that you need a lot of money to begin investing, that you need to be smart to do it, etc. These misconceptions simply serve to intimidate you, but the truth is, with a little know-how and even a small capital layout, anybody can begin investing.
Everyone talks and dreams of passive income and it makes sense. Why wouldn’t someone want to earn money while they sleep or with some sort of business that requires no regular work? Many people aspire to own their own streams of passive income, but not everyone is able to actualize that dream. What makes some businesses successful and others not?
I bet everyone wants to come up with the next big business idea for their generation. They want to create the next “facebook,” or “pinterest” in order to strike it rich. In many ways, people look at running a business in the same way as the gold rush. If they can just finding something unique, they will earn lots of money. This often leads people to ignore the mediocre, slow-building business ideas. After all, who wants a mediocre business, right? Despite common sense, a mediocre business can help you in many ways. You may be scratching your head or wondering why anyone would want an average business idea – but it’s true. Here’s why.
As I covered last week, I don’t have a large pile of money sitting around, waiting to be used. The only advantage that I have right now is time. I am working hard to develop some passive income from my online properties. I know that I will probably invest in real estate eventually, but I need to save up a down payment and emergency fund before I buy my first rental property. With that in mind, my main goal right now is to develop a larger income from my websites. Many people have questioned my large time investment, but I think it’s worth spending a few extra hours in order to develop a more sustainable source of income.
Have you ever wondered if this internet popularity with passive income will die out or if it is limited to a certain group of people? The popularity around passive income is based on the idea that anyone can generate passive income. But is this really true? Can anyone generate passive income or is it for the rich or wealthy?
A few weeks ago I wrote about how I was starting to see a shift in my early retirement plan, when I said that online real estate is better than physical real estate. The truth is that owning and managing websites still has a lot of advantages to owning rental properties. Yet, my approach is coming full circle to include rental properties once more. You may think that I am wishy-washy in my thinking, but that’s what this blog is all about.
As I have been trying to narrow in on my specific strategy to making a living from my online efforts, I keep coming up with this notion that bigger is not always better. On Monday, I mentioned that I keep building and buying more blogs. It was an addict’s first confession. I have bought into the belief that if I start a lot of projects now and continue to build them up over time, eventually my online income will take off like never before – and that’s saying a lot considering my most recent income report. Yet, even as I build up my online portfolio of blogs or empire (as many call it), I have a strong conviction that many are over-doing it. Here’s what I mean…
Over the past few months, I have found myself making the plunge in starting and buying more blogs that I ever would have thought imaginable. My wife tells me it is an addiction (and that’s probably true), but in reality, it is all part of my master plan to retire early. I am currently working at a job that is a decent job for right now. I am finishing up my Master’s degree and due to my sudden fascination with earning a living from blogging, I have decided to switch paths on my career. In order to achieve my crazy goal, I know I have to build up passive income. This is where more blogs come into play. To be quite honest, I think there is something to say for focusing all of your efforts on one blog and building it’s traffic up before starting on a second blog. I often wonder if I am not spending enough time writing and building up my first site, but alas, this isn’t my approach.
I often talk about the ideal business model. This is mostly due to the fact that I plan to make my living from income that I can turn into passive income instead of working the 9-to-5 my whole life. I know it sounds crazy to many, but it seems like it would offer me a lot of benefits and will be hard to turn down. As a result of being motivated, I know that I have to keep my expenses low in order to maximize my return. As I have talked about, one of the benefits of blogging is the low overhead costs. This allows for a smaller risk and more net income.
It was about 8 months ago that my eyes were opened up to the possibilities of earning income online. I never thought people who blogged could make a profession out of it. I decided to venture out and start my own blog back in August of 2011. It wasn’t this blog (this one was my 2nd blog), but I realized that it was possible for me to earn some decent money with my blog. I started dreaming big and decided to shoot for the stars by declaring my goal to “retire” by the age of 27. I hope to have enough passive income in 2.5 years that I can not have to worry about getting another day job.
For all of those who are faithfully following my progress on this site, you know reporting my income is a tradition at Passive Income to Retire. My goal is to have enough income to more than replace my income from my day job. I want to make sure that I can sustain a steady income before I do something crazy like retire at the age of 27, so I am building up my income now to see if I can maintain it for a while before pulling the plug on the traditional job. My goal is to build up a stream of steady income that I can sustain by working less than my day job.
I have made my early retirement plan known throughout the web. My hope is that I can generate enough income from my blog that I can replace my day job and transition to managing my portfolio of blogs and investing in real estate. My hope is to sustain, if not increase, this income in order… Read More »
Passive income is beginning to be an internet craze. Sometimes people define it pretty loosely (like when I suggest that a blog can generate passive income). This often leads to some confusion about what is passive income. For example, I post a monthly update on my extra income (that isn’t from my day job). I… Read More »
As I am starting to generate more income from my blogs, I am able to translate that into passive income by hiring out many of the services that I find tedious and not worth my time. Passive income, or money generated from an initial project that doesn’t require additional hours of work, offers many benefits.… Read More »
Have you ever wondered about the best strategy to owning multiple blogs? Maybe you have create a successful blog, but have not been able to go beyond that one blog? While I have yet to prove that my strategy is going to pay off, I am really confident that it will show some results soon.… Read More »
Have you ever heard the term, ‘passive investment’ and wondered what it exactly meant? If you look around the internet, this is a popular subject. I tend to take a more liberal approach to defining passive investments (as I think that a blog CAN be a passive investment) than many of my personal finance blogger peers. So what is the definition of a passive investment and why do I think a blog can qualify?
If you are looking for extra money but are already stressed for time, you may be looking to generate passive income. Generating passive income allows provides you the benefit of bringing in money without forcing you to work extra. Passive income essentially means that you bring in the bucks while you sleep. It can can be quite appealing, but it’s not always easy to generate income that doesn’t require work. So how does one generate passive income?
I often talk about my attempt to build passive income streams. I think that part of what makes Passive Income to Retire so unique is that I share how I am working to build up these passive income streams. What exactly am I doing to build passive income? Building Passive Income with Blogging If you… Read More »
Are you living a life that people only dream about? If you have been following this blog for some time, you know that I want to retire in 2-3 years without having to sacrifice my income. I don’t want to have to cut back my style of life, but I don’t need to expand it… Read More »
As I have been refining my goal to retire by the age that I am 27 (meaning that I work less than 3 days a week to maintain passive income streams), I have received a lot of helpful feedback. One of the biggest critiques that I have heard is that I need more specifics. I… Read More »
When most people start earning a decent side income from their online ventures, they quit their day job and focus entirely on building their empire. I want to explore this idea, asking if is best to keep you day job or get rid of it. As I start to build up my side business (and businesses in the future), I have started to ask myself this very question. I want to suggest a radically new answer to this question.