1) First of all, a good financial education is the key in all of this.
I spent over a year just reading on this topic before I leaped into action on ideas that I had no idea were going to work or not. If you've been in an employment situation for most of your life, this concept takes awhile to get your mind around. It's not "get-rich-quick" but at the same time it's worth it because you'll get both more time and money if you're successful.
I spent over a year just reading on this topic before I leaped into action on ideas that I had no idea were going to work or not. If you've been in an employment situation for most of your life, this concept takes awhile to get your mind around. It's not "get-rich-quick" but at the same time it's worth it because you'll get both more time and money if you're successful.
I've found it's better to start a small project (keeps you from going into debt) and grow it to the point it's stable. This way your time is free to start a second, third, fourth, and so on while the previous projects continue to bring in an income. You do this enough times and your income is "stacked" to the point you can transition into what most people call retirement.
If you're an expert in your field or have a specialized hobby, you can write advice articles and books. On-line businesses are good options as well, again if you start them small and keep them debt-free. Traditional small businesses are more expensive to start, but if you do the research there's still many fields where you can make a good income (the passive element is from repeat customers or eventually hiring employees who handle the work). Through the real estate market goes up and down, I've known people who have done well after putting a lot of research into it. Just in general, brainstorm what you would enjoy doing and make sure you have a plan ahead of time.
I think that's where most people get frustrated and give up too quickly. Passive income is made over time not overnight.
Additional tips:
- Great books on this topic include Rich Dad, Poor Dad and Cashflow Quadrant by Robert Kiyosaki and 48 Days To The Work You Love by Dan Miller.
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