What is meaning of passive income?
Warren Buffet used to say one famous quote: ” If you don’t find way to make money while you sleep, you will work until you die.” I think that it is best definition of passive income. Except your active income, you need find different ways to create passive income.
For my understanding, you need as early as possible to put some percentage of money in ETF, Real estate, share, business to create source of passive income. Or you need continue to study new skills to build something which you can give people value or good content.
Passive income exchange your effort and spare time.
I will begin to build different source of income in my spare time. When a lot of people talked about passive income, It is hot topic of how to build multi-source of passive income. But a lot of passive income is based on huge effort to build on in your spare time. Why no people talk about how long take them to create that passive income? I read one successful blogger said that it cost him 0.16 per hours at beginning for his blog. Now, he become super successful and no people talked about at beginning. All people showed his google ad sense, youtuber ad salary.
4 years to build $500 per month passive income blog
For example, I read one blogger guru blog, she said that it took her 4 years to create $500 per month. This was based on she writes down blogs most of weeks for years.
Another example is you tuber to create income
It involved record your contents years and years. All this time was not charge for passive income in future. So, I think that it is trade time for future passive income. One of famous financial you tuber Nate, it took him 5 years to build, he also said that he read 400 books per year to find contents to talk about. It will be 33 books per day. It is not including the time he created his video and made it for five years, I didn’t like how simple and easy they made it. It is hard work to create passive income.
Opportunities cost for passive income
Time is most important and limited things in the world. It is like opportunities cost. When you invest in real estate, you really do not have much extra money and invested in ETF. You only can build one source of income at one time. For example, the people is low and middle income, when they use real estate as passive income creator, they will run out of money to build second source of income, such as ETF, dividend share, business….
My two sources of passive income
Wealth is the ability that create passive stream of income. Wealthy is not belongs to any privilege people. It belongs to all of us. All the ordinary people who wish to change, to learn, to develop their own knowledge. It is my most important life philosophy too.
1, Real estate and rental income
Currently, there is my main passive income due to I paid off mortgage largely. The rental income is more than mortgage. Now, it changes a lot with before. Interest rate and the bank credit depends on the amount of borrowing. During 10 years and it was easy to borrow a lot of money to leverage. Now it is different.
2, Index fund and ETF
I began to invest in index fund this year. I will use dollar average strategies to invest each month. I am really like the Jack Bogles rules. “Keep simple and invest and not trade.”
Some ideas about passive income
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Digital products
I guess that it is about create your brand and write E-book and created course. I saw some blog sell E-book and course. Firstly, I believe that they need prove they had that skills and they can sell to people. The people can benefit from the course. However, digital products are easy to copy and need update regularly. It is really good passive income if you can find large number people to sell.
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Copyrights
It is interesting and I believe that it is copyrights writer.
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Audience and Social media brands. Such as create a you tuber channel and google Adsense
You tuber take time to build and the most important part is building personal brand and create value. The more value you created and the more people will trust and follow you.
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Affiliate marketing
So many people talked about affiliate marketing and forget to mention the hard work. If you had no audience and there is useless for affiliate marketing. I believe that it will take long time to build brand, build trust and audience. Why no people talk about their effort to attract affiliate marketing and how hard need to work? They make it as easy as everyone can do it.
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provide a service online and develop high income skills.
It will be future trend and Covid19 change the education. I believe that online course will become more popular in future. If you want to learn anything, you can find specialist to learn it.
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