Use your salary to invest in passive income, so that passive income replaces your salary.
💰Let's breakdown 5 ways to create passive income & build generational wealth:
💰Let's breakdown 5 ways to create passive income & build generational wealth:
You work for active income, but passive income works for you.
If you don't figure out how to make money in your sleep, a day may come when you lose sleep due to money.
Use active income to buy passive income, so that passive income replaces your active income.
If you don't figure out how to make money in your sleep, a day may come when you lose sleep due to money.
Use active income to buy passive income, so that passive income replaces your active income.
Financial freedom is having enough passive income to cover your living expenses.
First, passive income will cover your phone bill,
then it will cover your car payment,
then it will cover your mortgage,
then it will cover your salary.
First, passive income will cover your phone bill,
then it will cover your car payment,
then it will cover your mortgage,
then it will cover your salary.
Active income is temporary, but passive income is forever. Here are 7 methods that are passive or semi-passive:
• REITs
• Real Estate
• Renting Space
• Dividend Stocks
• Affiliate Marketing
• Covered Call Options
• Digital Products (Courses/ eBooks)
🧵Let's explain each:
• REITs
• Real Estate
• Renting Space
• Dividend Stocks
• Affiliate Marketing
• Covered Call Options
• Digital Products (Courses/ eBooks)
🧵Let's explain each:
1) Covered Call Income:
You write (sell) a covered call option that earns a premium from the buyer of the option.
You earn income from the premium paid by the buyer of the call option.
This strategy is used to generate income while holding stock in a company.
You write (sell) a covered call option that earns a premium from the buyer of the option.
You earn income from the premium paid by the buyer of the call option.
This strategy is used to generate income while holding stock in a company.
1) Covered Call Options:
By writing covered calls, you can profit from the premium you receive.
You sell weekly calls against stock you own, and you collect the premium.
Eventually, your shares will be free or they'll get called away at a higher price.
By writing covered calls, you can profit from the premium you receive.
You sell weekly calls against stock you own, and you collect the premium.
Eventually, your shares will be free or they'll get called away at a higher price.
2) Real Estate:
Buy real estate with a bank's money & have tenants pay it off.
In 30 years, you'll have a paid-off property that has appreciated & is cash-flowing.
Make rental income 100% passive by outsourcing the active parts of running it to a property management company.
Buy real estate with a bank's money & have tenants pay it off.
In 30 years, you'll have a paid-off property that has appreciated & is cash-flowing.
Make rental income 100% passive by outsourcing the active parts of running it to a property management company.
2) Real Estate:
Leverage borrowing money to purchase property, while tenants pay off the mortgage & you generate rental income
Over time, the property appreciates in value & the mortgage is paid off, and it becomes 100% cash-flowing
$10,500 can control a $300,000 asset
Leverage borrowing money to purchase property, while tenants pay off the mortgage & you generate rental income
Over time, the property appreciates in value & the mortgage is paid off, and it becomes 100% cash-flowing
$10,500 can control a $300,000 asset
3) Dividend Stocks:
If you consistently invest in dividend stocks you can create passive income over time
Dividends are payments at regular intervals from a company to investors who own shares in the company
Companies pay cash dividends on a quarterly basis from their profits
If you consistently invest in dividend stocks you can create passive income over time
Dividends are payments at regular intervals from a company to investors who own shares in the company
Companies pay cash dividends on a quarterly basis from their profits
3) Dividend Income:
When you receive dividends, you can reinvest them by purchasing additional shares of the stock.
This leads to more compounding over time, where your dividends earn dividends, and your initial investment grows even faster.
When you receive dividends, you can reinvest them by purchasing additional shares of the stock.
This leads to more compounding over time, where your dividends earn dividends, and your initial investment grows even faster.
$SCHD is my favorite dividend index fund because it only invests in dividend stocks:
• that paid investors every year for at least 10 years
• whose shares have significant daily trading volume
• whose companies have the best relative financial strength
• that paid investors every year for at least 10 years
• whose shares have significant daily trading volume
• whose companies have the best relative financial strength
9 Highest Dividend-Paying Stocks in the S&P 500:
• $T
• $LUMN
• $MO
• $KMI
• $OKE
• $WMB
• $IRM
• $PPL
• $VNO
• $T
• $LUMN
• $MO
• $KMI
• $OKE
• $WMB
• $IRM
• $PPL
• $VNO
4) Affiliate Marketing Income:
Affiliate marketing is recommending a product or service, then earning a commission when someone uses your referral link to buy it.
Promoting products or services through your social media can generate commissions from sales that you generate.
Affiliate marketing is recommending a product or service, then earning a commission when someone uses your referral link to buy it.
Promoting products or services through your social media can generate commissions from sales that you generate.
5) Digital Products (Courses/ eBooks):
Create a course & create passive income from the sale of your course or e-book
Leverage the worldwide audience of Amazon to put your book in front of millions
If you invest the time, digital products are a great source of passive income
Create a course & create passive income from the sale of your course or e-book
Leverage the worldwide audience of Amazon to put your book in front of millions
If you invest the time, digital products are a great source of passive income
6) Renting Space:
You can rent out storage space with many storage rental platforms like Neighbor, Peerspace, or StoreAtMyHouse.
There are many different spaces that can be rented out, such as storage spaces, parking spaces, garages, spare rooms, or outdoor spaces for events.
You can rent out storage space with many storage rental platforms like Neighbor, Peerspace, or StoreAtMyHouse.
There are many different spaces that can be rented out, such as storage spaces, parking spaces, garages, spare rooms, or outdoor spaces for events.
7) REITs:
This decade, the average annual return on REITs was ~10%
A REIT (real estate investment trust) is a company that owns and manages real estate, such as commercial buildings, apartments, and hotels
You can purchase REITs on the stock market just like a dividend stock
This decade, the average annual return on REITs was ~10%
A REIT (real estate investment trust) is a company that owns and manages real estate, such as commercial buildings, apartments, and hotels
You can purchase REITs on the stock market just like a dividend stock
You can find REITs for every sector of real estate, such as:
• Malls
• Retail
• Storage
• Casinos
• Industrial
• Healthcare
• Cell Towers
• Apartments
• Data Centers
REITS are a great way to gain exposure to high-yield dividends and exposure to the Real Estate sector.
• Malls
• Retail
• Storage
• Casinos
• Industrial
• Healthcare
• Cell Towers
• Apartments
• Data Centers
REITS are a great way to gain exposure to high-yield dividends and exposure to the Real Estate sector.
Unpopular Opinion:
Credit card points = passive income
Use credit cards to save thousands of dollars by earning reward points, cash back, travel rewards, free insurance, travel protection, purchase protection, and raise your credit score
Credit card points = passive income
Use credit cards to save thousands of dollars by earning reward points, cash back, travel rewards, free insurance, travel protection, purchase protection, and raise your credit score
Passive income is the ability to earn money without having to actively work for it.
Nothing is truly 100% passive upfront, as everything requires some amount of effort to set up initially.
Use your time & money to create systems that require minimal intervention from you.
Nothing is truly 100% passive upfront, as everything requires some amount of effort to set up initially.
Use your time & money to create systems that require minimal intervention from you.
Active income is temporary but passive income is forever. Passive income is a must.
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If you found this thread helpful:
• RT the FIRST tweet
• Follow me @FluentInFinance
• Sign-up for my FREE newsletter to master your money: FluentInFinance.Substack.com!
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