Whether you take a “distribution” (aka free-cash-flow) in the form of a dividend, interest payment, capital gain, maturing ladder of a CD, etc, you are still taking the same amount of cash out of your portfolio. Don’t fall for the trap of sub optimizing your overall portfolio’s performance because your chasing some unimportant trait called “income”.
They also launched an incredible Retirement Planning Calculator that pulls in real data from your linked accounts to run a Monte Carlo simulation model to output the most likely results of your financial future. I strongly suggest you run your own numbers, play around with the income and expense variables, and see how you stack up. It’s all free and easy to use.
No one should turn down wind farming’s ultimate passive income for the next 30 or more years … even 60 years when there is a positive cash flow on the sum total of all base payments when computing inflation for the next 60 years based on the previous 60 years, as long as the next era’s energy resource is not perfected (at which time they would not renew the option for the second 30 years).

One of the most important assets you have is your credit score. By taking care of it and pursuing the steps to improve your credit score, a world of opportunity can open up for you. If you need a loan to buy that rental property or some quick funding through a business credit card, a good credit score will help you get approved so you can build passive income.


No argument here. It’s not for everybody. Just like you can’t imagine taking risks or finding the energy to be creative after you get home from work, I can’t imagine trading 40% of my waking life for money, leaving me with no time to actually spend the money I made. Even when building startups, I believe that I’m trading time for asset creation (which is why I still receive checks every month from my last startup). Nothing against you if 9–5 is how you choose to live, and in fact, I’m very happy for you if it makes you happy. Just know that you have a choice!

I personally haven’t tried any of the below methods so I can't speak from experience to how they work. In my mind, the most lucrative way is through building a REAL business online and providing your visitors with great value. However, after some thought, I decided to include these here because, quite often, the biggest roadblock for many is a mental one: believing that making money online is possible. From my experience, once you have made your first dollar, or even your first cent online, the world is suddenly a different color.

Like I mentioned earlier, coming in late in the game can be an advantage if you listen, learn and provide solutions for what seems to be missing. Even coming into a market with a minimal viable product, you’ll have the advantage of being able to get deep into the customer experience to shape your product or service to what it should be, again, all based on what you’re able to measure and learn.
Once you start to see some success, don’t be led astray by the money. While Flynn does use affiliate marketing to make money, he only ever recommends products that he has personally used and likes. He is inundated by offers to earn $50 per sale through commission on products he has never even tried. “I’m like, ‘I don’t even know you, I don’t know what this product can do, and I don’t know if this product will help my audience.’ I only use products I’ve used before, because that trust you have with your audience is the most important thing in the world.” He says if you do recommend a product for the incredible commission but your audience has a bad experience with it, your credibility will be shot.

When money is lent to a partnership or S-corporation acting as a pass-through entity (essentially a business that is designed to reduce the effects of double taxation) by that entity’s owner, the interest income on that loan to the portfolio income can qualify as passive income. As the IRS language reads: "Certain self-charged interest income or deductions may be treated as passive activity gross income or passive activity deductions if the loan proceeds are used in a passive activity."


​If you pay your bills with a credit card make sure it offers cash back rewards. You can let your rewards accrue for a while and possibly put the easy money you earned toward another passive income venture! (Be sure that the card you select doesn’t have an annual fee or you might be cancelling out your rewards). Check out this list of the best Cashback Rewards Cards.

That strategy seems waaaayyyy less risky than actively picking stocks of supposedly “reliable” stocks that issue dividends, which could be cut at any time due to shifting industry trends and company performance. Dividend investing feels like an overly complex old-school way of investing that doesn’t have a very strong intellectual basis compared to index investing.
We’ve discussed how to get started building passive income for financial freedom in a previous post. Now I’d like to rank the various passive income streams based on risk, return, and feasibility. The rankings are somewhat subjective, but they are born from my own real life experiences attempting to generate multiple types of passive income sources over the past 16 years.
Affiliate programs are the current hot thing in monetising websites. The basics are that retailers like Amazon will pay you a percentage if you send someone to their website to buy something. The percentage ranges from around 3% with sites like Amazon all the way up to 60% or even higher for information products sold by other people looking to make passive income. 
Starting a blog is one of the most popular side hustles to earn online income. This is because whether you have 10 people or 10 million reading your content, the amount of your effort to write an article is the same. Websites have low start-up costs and you can literally buy your domain, launch your site and have a few pages created in less than an hour. You won’t start making money right away, but you will be building towards that first $1 of income.
What are your thoughts on an Immediate Annuity as a passive income vehicle? I suppose it’s not a great investment since you never get your principal back, but the risk is zero and the cash flow is fairly good, approaching 6% currently. And, since you are guaranteed payments for life, you may not care that you never see your principal again anyway since you’ll be dead!
Remember, a successful business solves people’s problems. At first, you’re going to have to do the legwork and put in the time. But it’s about building something now so you can reap the benefits later, with the help of software, tools, automation, and people you hire. In this way, you can then turn this business that solves people’s problems into something that generates passive income for you!
​Affiliate marketing is the practice of partnering with a company (becoming their affiliate) to receive a commission on a product. This method of generating income works the best for those with blogs and websites. Even then, it takes a long time to build up before it becomes passive. If you want to get started with affiliate marketing check out this great list of affiliate marketing programs.
This is the basic mistake they've made: they've fallen prey to the belief that money and meaning are two totally separate things. They've chosen to make their money from something that feels completely meaningless to them (some business they care so little about, they just can't wait to get away from it and minimize their involvement as much as possible), which they hope will buy them the freedom to do something they actually care about.
Do you want to earn $100, $1000 — or even more — on the side? You can start earning extra income today with the help of this list of ideas I’ve put together. Spend an hour or two each day working on items that are practical for you, and you can build alternative income sources to help you improve your financial situation  While many of the items on this list are passive income ideas, not all of them are. Some items require you to actively work for success.

Awesome article…if this does not give somebody a clear roadmap, they probably were never going to get there in the first place! I’m kind of like you trying to figure out where to place “new” money and maturing CD’s in this low interest environment. Rates have to go up eventually…I dream of the days again where you can build a laddered bond portfolio paying 8%. I plan for a 5.5% blended rate of return, with big downside protection.
Book sales ($36,000 a year): Sales of How to Engineer Your Layoff" continue to be steady. I expect book sales to rise once the economy starts to soften and people get more nervous about their jobs. It's always best to be ahead of the curve when it comes to a layoff by negotiating first. Further, if you are planning to quit your job, then there is no downside in trying to engineer your layoff so you can get WARN Act pay for several months, a severance check, deferred compensation, and healthcare.
1) If your property is not under rent control, you have the ability to raise rent to market prices with proper warning. In SF, I have to give tenants a one month warning for up to a 10% increase and a two month warning for up to 60%. Rent control limits to an inflation index, usually around 2% a year, which is why initial pricing and tenant turnover is important for better profitability.

Obviously, these are much higher than you’re going to get with most other investments. What’s more is that you can choose a plan that matches your investment strategy, whether your goal is Supplemental Income, Balanced Investing, or Long-term Growth. You can also look at different real estate projects and choose for yourself which ones to invest in.
Let’s say a company earns $1 a share and pays out 75 cents in the form of a dividend. That’s a 75% dividend payout ratio. Let’s say the next year the company earns $2 a share and pays out $1 in the form of dividends. Although the dividend payout ratio declines to 50%, due the company wanting to spend more CAPEX on expansion, at least the absolute dividend amount increases.
However, when you lack the money, you need time. You'll need to invest the upfront time now in order to reap the benefits of automatic income later. It just doesn't happen overnight. So don't expect it to. However, you can do this without quitting your day job. All it takes is some sincere effort over a consistent period, and voila! But, to get there, you'll need to consistently burn the midnight oil or get up at the crack of dawn. Your choice.
When I purchase an existing online business, I look for cash flow over the past year and where the money comes from. I want the sources to be more passive so that it does not take a lot of my time. Also, typically I will make an offer that is 18 – 24 months of profit so that I know that I will get my money back within the next two years. I hope that helps!
Thanks for the info…I kind of figured it is really not that expensive to live if you are not an extravagant person. I could definitely figure out how to funnel expenses through a part time business…I think I keep thinking along the lines that I’m going to be paying the same tax rate after retirement, but reality is you could get pretty lean and mean if one focused on it. On a scale of 1-10 with 10 being utter panic mode, how worried are you about your “pile” lasting through a 50 year retirement now that you are a couple years into it? https://www.biznews.com/wp-content/uploads/2016/10/passive_income.jpg
Selling T-shirts and other apparel is a pretty saturated market but the tools to do it are easy to use, which makes it very quick and cheap to get going. If you’re creative enough, or tap into the zeitgeist properly, you can also have a runaway hit. Even if your first 19 T-shirts don’t sell more than a few copies, your 20th might make up for everything.

As todays business world becomes more and more web focused, creating passive income streams online should be one of your main focuses when building a business in the new economy – whether you’re doing this on your own, or with the help of virtual assistants that manage your blog, or even handle the marketing of your site – you’ve got to love making money while you sleep!
In Eric Reis’s The Lean Startup, a fantastic book about how today’s entrepreneurs and startup companies are approaching the way they create and innovate, Eric talks about how vital it is to use validated learning and scientific experimentation to be able to steer a company in the right direction. In other words, to use customer feedback and quantified data analysis (of real, non-vanity metrics) from a minimal viable product to make decisions and pivot a business one way or another. https://cdn5.vectorstock.com/i/1000x1000/46/29/passive-income-concept-cartoon-vector-6694629.jpg
All ideas take some amount of time and money to come to fruition. Some people have a lot of one of these, but not much of the other. A lot of successful ideas have started when one person had the resources that another did not. And many businesses have been started using 0% loans from credit cards to fund their concept and keep the business going until it achieved success.
"People will pay to learn what you know about programming or designing, how to be a better public speaker, and or how to increase sales. How you design, develop and create your e-course will depend on what you teach, how you teach, and the best way for your readers to learn" Zelenko says. Sure, you'll spend some time and money developing your course on platforms such as Udemy.com or Teachable.com, but once you've created it, there's minimal upkeep.
My rental properties are typically purchased from $80,000 to $135,000 and produce $1,200 to $1,500 in rent every month. Some properties need repairs and some are almost ready to rent when I buy them. I also buy my properties below market value, which has greatly increased my net worth over the last four years. The great thing about investing in real estate is my rents and income go up with inflation. The biggest challenge for most people who want to buy rentals is figuring out what is a good deal, what rents are and if they are making a good investment. I help people figure all of that out and save a lot of time with my Complete Blueprint to Successful Real Estate Investing.

Passive income is an incredible tool that everyone should include in their retirement plans. With traditional investing you have to rely on the stock market to increase your investments over time. The longer you have your money invested, the more your money will grow. The stock market does not produce passive income, except in the form of dividends. Most dividends are extremely small and produce small returns on investment. The bulk of stock market returns come from an increase in stock market prices. The only way to realize those increase in value is to sell stock. Retirement calculators that use the stock market as an investment plan on you running out of money when you die because you have to sell all your investments to keep bringing money in.

Real-estate crowdfunding ($9,600 a year): Once I sold my SF rental, it was natural to reinvest some of the proceeds into real-estate crowdfunding to keep sector exposure. I didn't invest a lot in some of my favorite real-estate investment trusts because I felt a rising interest-rate environment would be a stronger headwind for REITs. But if I could be more surgical with my real-estate investments by identifying specific investments in stronger employment-growth markets, I thought I could do better.
I had to get out. I actually had this random Facebook ad come up in my news feed (go figure) and it eventually led me to a webinar that taught on how to start an email marketing business (which is, by the way, the most profitable form of affiliate marketing – or ANY marketing for that matter). I listened through the whole 2 hours, completely mesmerized. By the end of it, I knew what I was going to be focusing on to help my family out of the pit of debt we were in and into a world free of financial stress. I didn’t know if it would actually work, but eventually it lead to EXCESS income!
But when so many turn down leasing one and one-half acre for one Wind Turbine for each 80 acres, that lease certainly does not materially affect the rest of the Farm or Ranch grazing pasture and the lease pays much more than the farm crow or grazing pasture lease, just because some lawyer said the lease was too long: 30 years plus 30 year option = 60 years, and the wind turbine company has selling production/electricity contracts for the next 150 years – which is needed to obtain financing!
Who cares? I don’t care one bit about building a “successful company” with most of my passive projects. That’s for my active projects — and I’ve done that when I converted them into active projects. For passive income, I can build products and automated services that are useful enough that people want to buy and use them. My Magento modules and Udemy course had 5 star ratings despite being passive. I knew back then that I could probably sell 2x as many copies of each if I made it my full time job — but I chose note to. I realized that if I could have more fun, get more fulfillment, and make more money out of other passive activities, and that’s why I don’t care that my passive businesses are small and nichey. Again, though, converting one of them into an active business has made it much more successful — so I would just remind you that they aren’t mutually exclusive, and if anything, having a Passive Income side business or 2 let’s you try out a few different waters before you dive in to any one.
Blogging is still going to take work starting out. That path to $5,000 a month didn’t happen overnight but just like real estate development, it build up an asset that now creates constant cash flow whether I work or not. I get over 30,000 visitors a month from Google search rankings, rankings that will continue to send traffic even if I take a little time off.

That’s why I sometimes hesitate to even say I participate in affiliate marketing. But that’s not how I, or you, should approach it. I’m here to lead the change and show people there is so much opportunity out there in affiliate marketing the right way (and the smart way). It’s insane to me that more people aren’t really realizing their full potential with this.
Invest in a business as a silent partner. A silent partner is an inactive investor in a business. That is, they contribute capital to start the business, but don't actually make any business decisions and leave the management of the business up to the active partners. In turn, they receive a portion of the business's profits. In this way, you have the potential to earn regular, sizable payouts from simply making an initial investment.

And while real estate is an excellent option, it does require a significant initial investment, so whether or not this passive income stream is right for you depends on your current financial situation. You might be better off starting with an investment strategy where you can build funds until you have a big enough sum to get involved in real estate.


So many readers have asked me “How do you invest your money?”.  And so I’ve shared my thoughts on building a smartly diversified portfolio for long term returns.  Of course, this is great when you have a large capital base and 30-40 year time horizon.  For example if you are compounding at just 5-10% but doing it over 40 years and from a large starting base, plus you are topping it up monthly with new funds, you can enjoy ridiculous returns.
Mike, I don’t consider the income from FS to be passive, as I’m spending time commenting to you right now. But since 75% of my traffic comes from search, the most traffic I would probably lose is 25% for probably a year. And then my search word rankings would probably slowly fade given frequency of posting new content is one of the search algo variables.
The craziest part of this was I’d wake up in the morning and there would be more money in my bank account, from people who had bought my book overnight. When you think about it, an online store that sells something that’s digital is something that’s open 24 hours a day, 7 days a week, 365 days a year. Using tools, software and systems, you can automate the delivery process so you literally don’t have to do anything to serve that audience. That’s super powerful.
A month later, the direct deposit hit my account. The next month brought another. I found myself greatly motivated to keep learning real estate, to understand what some of the terminology meant and the different ways to invest. Now that there was some money on the line, I became more interested than ever. Next thing you know, I had invested nearly $100,000 in total in various crowdfunding ventures.

For me, this has worked out brilliantly. Because I had passive income streams set up, I didn’t have to worry about generating sales immediately, raising funds from investors so that I can eat, etc. I could take my time, try out 100 different opportunities, and ultimately settle on a business that suited my needs (the one that I’m running now), which allows me to live and work wherever I want and whenever I want, and is, for the most part, fully autonomous. But I didn’t always have passive income — in fact, it took a lot of trial and error and a lot of learning (do yourself a favor and read Rich Dad Poor Dad — iBooks Link Here) before I had anything worth mentioning.
Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.

Creating passive income is one of the most important steps towards retirement. Passive income is money that comes in without any work from you. Stock dividends, rental property income, interest on notes are all forms of passive income. Truly passive income is almost impossible to achieve, because every investment involves some sort of work. Stocks are fairly easy to buy, but still require research, while real estate is more difficult to buy, but can produce much higher returns.

In the real estate market, the one of best ways to generate passive income is by investing in turnkey rental properties that are ready to rent with and are managed by property management companies. In theory, the process is relatively simple. You either research properties or have people you trust do it, find ones that are in good condition and preferably in good areas, pay a reputable contractor to perform any repairs and ensure the property is in its best possible condition, and then hire a trusted property management company to handle the administrative tasks, including collecting rent, documenting and paying for maintenance and repairs, and sending money to you.
Sell information in the form of e-books. E-books are electronic files that can be downloaded and read on the computer much like paper-bound books. If you're an expert at something, you can create an e-book and offer it for sale on your website. You can also have your own affiliate program, allowing others to offer your e-book on their websites, and earning a small commission for each sale.[8]

I’ve been a lurker for these past few weeks and here comes an excellent post summarizing all the things I want to know about ways to generate passive income. I’ve had this idea in my mind (and somewhere in my notebooks) about a niche site but am torn between making it an excellent means of passive income and keeping it a professional space. Should I make two sites, one for the professional side and another for the passive income? I am also considering “personal branding” but I’m too young to be a consultant on the niche/subject matter (okay, it’s education).
​Network marketing, or multi-level marketing, seems to be on the rise. Companies such as Young Living Oils, Avon, Pampered Chef, and AdvoCare are all multi-level marketing companies. You can earn passive income through network marketing by building a team underneath you (often referred to as a down line.) Once you have a large team you can earn commissions off of their sales without having to do much.
Let’s say a company earns $1 a share and pays out 75 cents in the form of a dividend. That’s a 75% dividend payout ratio. Let’s say the next year the company earns $2 a share and pays out $1 in the form of dividends. Although the dividend payout ratio declines to 50%, due the company wanting to spend more CAPEX on expansion, at least the absolute dividend amount increases.
A good portion of my stock allocation is in growth stocks and structured notes that pay no dividends. The dividend income that comes from stocks is primarily from S&P 500 index exchange-traded funds. Although this is a passive-income report, as I'm still relatively young I'm more interested in building a large financial nut through principal appreciation rather than through dividend investing. As an entrepreneur, I can't help but have a growth mindset.
You are also free to choose a fund that is based on any index that you want. For example, there are index funds set up for just about every market sector there is — energy, precious metals, banking, emerging markets — you name it. All you have to do is decide that you want to participate, then contribute money and sit back and relax. Your stock portfolio will then be on automatic pilot.
Hi there. I am new here, I live in Norway, and I am working my way to FI. I am 43 years now and started way to late….. It just came to my mind for real 2,5years ago after having read Mr Moneymoustache`s blog. Fortunately I have been good with money before also so my starting point has been good. I was smart enough to buy a rental apartment 18years ago, with only 12000$ in my pocket to invest which was 1/10 of the price of the property. I actually just sold it as the ROI (I think its the right word for it) was coming down to nothing really. If I took the rent, subtracted the monthly costs and also subtracted what a loan would cost me, and after that subtracted tax the following numbers appeared: The sales value of the apartment after tax was around 300000$ and the sum I would have left every year on the rent was 3750$……..Ok it was payed down so the real numbers were higher, but that is incredibly low returns. It was located in Oslo the capital of Norway, so the price rise have been tremendous the late 18 years. I am all for stocks now. I know they also are priced high at the moment which my 53% return since December 2016 also shows……..The only reason this apartment was the right decision 18 years ago, was the big leverage and the tremendous price growth. It was right then, but it does not have to be right now to do the same. For the stocks I run a very easy in / out of the marked rule, which would give you better sleep, and also historically better rates of return, but more important lower volatility on you portfolio. Try out for yourself the following: Sell the S&P 500 when it is performing under its 365days average, and buy when it crosses over. I do not use the s&P 500 but the obx index in Norway. Even if you calculate in the cost of selling and buying including the spread of the product I am using the results are amazing. I have run through all the data thoroughly since 1983, and the result was that the index gave 44x the investment and the investment in the index gives 77x the investment in this timeframe. The most important findings though is what it means to you when you start withdrawing principal, as you will not experience all the big dips and therefore do not destroy your principal withdrawing through those dips. I hav all the graphs and statistics for it and it really works. The “drawbacks” is that during good times like from 2009 til today you will fall a little short of the index because of some “false” out indications, but who cares when your portfolio return in 2008 was 0% instead of -55%…….To give a little during good times costs so little in comparison to the return you get in the bad times. All is of course done from an account where you do not get taxed for selling and buying as long as you dont withdraw anything. 

So, I sat down, wrote a few posts, and posted them on a simple website under the name Passive Income MD. I honestly didn’t expect anyone to read it. Well, that was two years ago and so much has happened since. Most notably, I’m now in a position where I am financially independent from medicine. In fact, I’ve started to cut back at work in order to find that happy work-family life balance. I don’t have any desire to quit medicine completely, but I do intend to retire gradually.
One thing I’ve realized is this: It’s FAR easier to work for an employer than it is to develop durable passive income streams for the average person. Why? Because working for an employer in a place that “needs” you means that it’s possible to show up and give a 50% effort. You can show up, put in your time, go home, have a beer, watch TV, and rinse and repeat all without REALLY having to put in the effort.
I use a property manager to handle my rental properties. Most months, my only involvement is checking my bank account to verify I received my checks, then making a payment to the mortgage company. If you don’t have enough money to buy a rental property, you can get started investing in real estate by buying a REIT stock or investing through platforms that let you buy a partial interest in a building.

Dividend stocks tend to be more mature companies that are past their high growth stage. Utilities, telecoms, and financial sectors tend to make up the majority of dividend paying companies. Tech, Internet, and biotech, on the other hand, tend not to pay any dividends because they are reinvesting most of their retained earnings back into their company for growth.
Ever find yourself humming a tune, or laying down tracks for yourself or friends? Your next catchy phrase might fetch you a solid passive income stream. On sites like ProductionTrax and Audio Network, musicians can license their compositions for background music in apps, commercials, and websites to earn more money. Read more about this strategy at The Guardian.
We’ve discussed how to get started building passive income for financial freedom in a previous post. Now I’d like to rank the various passive income streams based on risk, return, and feasibility. The rankings are somewhat subjective, but they are born from my own real life experiences attempting to generate multiple types of passive income sources over the past 16 years.
Who doesn’t like some down and dirty affiliate fees?!  Especially if you realize it can be even easier to make money this way than with an ebook.  After all, you simply need to concentrate on pumping out some content for your own site and getting the traffic in, often via Google or social media.  Unsurprisingly, most people can enjoy their first affiliate sale within 30 days of starting a blog.  Continue reading >
With $200,000 a year in passive income, I would have enough income to provide for a family of up to four in San Francisco, given we bought a modest home in 2014. Now that we have a son, I'm happy to say that $200,000 indeed does seem like enough, especially if we can win the public-school lottery to avoid paying $20,000 to $50,000 a year in private-school tuition.
Occupational therapist Sarah Stromsdorfer founded occupational therapy site MyOTSpot.com three years ago as an online educational resources for occupational therapy students and professionals. She worked on it every weekend, and her site now makes enough income for her to work as an occupational therapist part-time. She believes it will be another year before her site makes enough money for a full-time living of about $4,000 per month. In addition to the digital products she also makes money from ads and online book sales.
A passive income stream is one that, once put in place, earns income for the owner without needing much more additional effort. Passive income streams are a good way to supplement your income because they are inexpensive to create, low risk, easy to duplicate and make money any time of day. You can earn passive income on money you invest or property you rent out, but many people earn it over the Internet.

What are your thoughts on an Immediate Annuity as a passive income vehicle? I suppose it’s not a great investment since you never get your principal back, but the risk is zero and the cash flow is fairly good, approaching 6% currently. And, since you are guaranteed payments for life, you may not care that you never see your principal again anyway since you’ll be dead!


Focus on your primary passive income stream first. It's difficult to grow your passive income into multiple streams if you don't already have one, solid stream. Focus all of your efforts on that one project first and help it grow as productive as possible. Then, you can take the money you've made and lessons you've learned from this passive income stream and put them into others.
Flynn, who blogs at Smart Passive Income and discusses his secrets at the Smart Passive Income podcast, defines passive income as “building online businesses that take advantage of systems of automations that allow transactions, cash flow and growth without requiring a real-time presence. We don’t have to trade our time for money one to one. Instead, we invest our time upfront, creating valuable products and experiences for people, and we reap the benefits of that time invested later,” he says, adding, “It’s not easy. I just want to make sure that’s clear.”
I just can’t seem to get my head around creating my own online product. When you talk about it, you make it sound like its mostly just about putting in the time and plugging away at it. Problem is I can never seem to come up with any ideas for a site or product that seem remotely unique or compelling or that I have any special knowledge about. The stuff I do know about is pretty commodity type knowledge that can mostly be found on thousands of sites on the internet already. Any tips on discovering what your “unique angle” is? I mean, you have a pretty compelling and somewhat unique personal story of working on wall street and then walking away at a young age.
Ever find yourself humming a tune, or laying down tracks for yourself or friends? Your next catchy phrase might fetch you a solid passive income stream. On sites like ProductionTrax and Audio Network, musicians can license their compositions for background music in apps, commercials, and websites to earn more money. Read more about this strategy at The Guardian.

If your research really does determine that there is some amazing market niche that until now has miraculously gone unnoticed and unserved---dog owners who wish to help their dogs lose weight naturally, for example---sooner or later, word is going to get out that there's money to be made there, and someone is going to create a better ebook or info course or product that serves that market's needs better than yours does, and who markets it better to them than you do. You can't manage this competition while sipping margaritas all day from your paradise restaurant on Fiji. You'll soon see your market share go down the drain---just like all those Açai cleanses. . .


Renting value is exactly what you do when you go to work every day. This is a great way to adhere to our rule against one-time consumption, although you can only rent something to one person at a time (drawback). By renting something, I can generally avoid degradation of the value, or at least lessen it. By renting you a house, I’m charging you for the value of the shelter and comfort, and in fact incur pretty minimal decrease in value as your usage of the house causes wear and tear. When you’re done renting the house, there’s still plenty of value left to rent out, and the fact that you’ve enjoyed a year or two of value doesn’t much matter to the next willing consumer.
At age 55, I own high-end rental properties (near the beach) and commercial buildings servicing the medical industry. I was widely criticized during my career for not living up to my income; that is, buying big homes with many fancy cars. I married a great woman who understood that saving and investing today meant a better lifestyle and more freedom tomorrow. Our passive income is half of my active income from sales, but my net worth has increased substantially. We are both happier and healthier than we were in the high-stress pressure cooker of franchise sales. The naysayers have become converts to the concept of passive income, but they have locked themselves into a “big hat, no cattle” lifestyle. It has been a great ride!

That strategy seems waaaayyyy less risky than actively picking stocks of supposedly “reliable” stocks that issue dividends, which could be cut at any time due to shifting industry trends and company performance. Dividend investing feels like an overly complex old-school way of investing that doesn’t have a very strong intellectual basis compared to index investing.
1) If your property is not under rent control, you have the ability to raise rent to market prices with proper warning. In SF, I have to give tenants a one month warning for up to a 10% increase and a two month warning for up to 60%. Rent control limits to an inflation index, usually around 2% a year, which is why initial pricing and tenant turnover is important for better profitability.
I actually spent a year and a half working as an affiliate marketer (mostly selling drumming related products – lessons, kits ect). 5 years on and one of my one page sites (which I’ve not touched) still nets me about $150 a month. I won’t be retiring off that but only really now appreciate the reverse pyramid approach to entrepreneurship (working for nothing initially but later being paid without effort!)
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