Category: Uncategorized

There are quite a few people in this world that question the importance of passive income. I constantly receive the question, “Why Passive Income?” In other words, what makes passive income so special in comparison to those that can earn a 6-figure income with their jobs each year? As you’ll see throughout this post, there is a huge difference between earned income and passive income, especially when it comes to earning potential.

Earned Income

We are all quite familiar with this type of income. Earned income is typically an hourly wage (or a salary) where the amount paid is dependant on the hours that you work. If you clock in for the day at the factory, you’ll be getting paid for your time. If not, then you won’t get paid. It’s as simple as that.

There are a wide variety of incomes within this income method. Some employees work for only $8 an hour, while others are earning hundreds of thousands of dollars each year! Either way though, they are still trading time for money, and if they’d like to earn more money, they’ll most likely have to stick around work just a little bit longer.

Passive Income

Those that work for a passive income have a completely different mindset than those that work for an earned income. Passive income earners are willing to work today for absolutely nothing, just because there’s a chance that they’ll earn consistent money in the future. In other words, they’ll be getting paid for the rest of their lives for something they did years before and haven’t touched since.

Typically, passive income starts very slowly and appears to be a waste of time. Perhaps you start a niche website that’s earning $50/month from Adsense, but your friend is using his time to work on side projects, which net him upwards of $1,000 a month. If you compare dollars to dollars, passive income looks like a joke doesn’t it? But let me tell you, that $50 is a great start and could easily grow into thousands.

Developing Money Over Time With Passive Income

That $50 is only the beginning when it comes to passive income. Once you have the website set up like you want it, you can now just let it run by itself and start another one. Suddenly, you’re earning $100 a month (2 sites). Keep repeating this process 100 times and you’re earning $5,000. Then, if you decided to lay on the beach for a year, you’d still be earning your $5,000 because it’s 100% passive. Meanwhile, your friend is still slaving away each evening so he can earn a mesely $1,000 per month. Are you starting to see how powerful passive income can be?

By using the method of passive income, one can attain great wealth. However, it’s not easy to develop, and it’s certainly not easy to have the patience to build the empire. For quite a long time, you’ll feel like you’re working for nothing, until one day, you’ll realize that your earnings are growing and you don’t even have to work to earn the money if you don’t want to!

Do you have passive income ideas? Are you willing to act on them?

Nothing has demonstrated the fragility of jobs more than what we have been through in the past five years. Twenty-three million people unemployed or underemployed is something that even the most obtuse among us cannot ignore. This is not a political statement. It is a fact, and it is irrefutable. Maybe you are one of those 23 million. I can only imagine how losing your job has turned your life upside down. Unemployment compensation cannot replace a paycheck and although it surely helps, it is only available for a defined period. Passive income can be a buffer against such life-changing events.

The Passive Income Stream

All too often, the clearest insights we have with regard to our lives are seen in the rearview mirror. When you bought your first home, did you consider a duplex? I know I didn’t!  After years of apartment living, I yearned for my own space and wanted to distance myself from that nosy neighbor with an ear pressed to his side of my bedroom wall. Looking in that rear view mirror, I realize that I could have purchased a duplex for just a little more than I paid for my single family home. Had I done that, someone else would have paid my mortgage payment for twenty years, and I could have invested the savings in another duplex or other passive income opportunity. It’s too late for me, but not for you! Real estate is a form of passive income virtually everyone is capable of achieving. If you buy a single family home, you are a chump! I can’t put it any plainer than that.

So, Passive Income is a Sure Thing?

Whoa! Not so fast, cowboy! Only two things are sure in life, and passive income isn’t one of them. Sadly, there is an element of risk in any investment. That’s why you get a return on your investment. That return is your reward for taking the risk. You cannot eliminate risk, but you can mitigate it. You can even find entire corporations that are built on the concept of risk management.

How Do I Manage Risk?

Using the duplex as an example, the first thing you should do is establish what you, or you and your spouse can afford as a monthly mortgage payment. Consider only 50% of the anticipated rental income from the duplex in your calculation and consider only 150% of your combined household income. This will minimize your risk if the rental is unoccupied or needs repairs and will provide you breathing room in the event you or your spouse suffers a job loss. Then, buy in a stable neighborhood that has good schools, access to public transportation and convenient shopping. It is the location, location, location thing.

Next, make certain you perform your due diligence on the condition of the property. Ask yourself, “Will it need immediate repairs? What repairs will it require in the future and are these costs manageable in the context of my income? Finally, research the property tax and insurance costs. Is anything in the wind that might cause property taxes to rise, such as a proposal for building a new school or adding a new gymnasium? What are your insurance costs considering the rental portion of the property? You must take these steps to mitigate or reduce your risk. If you follow this advice, you are starting in a good place and while no one can guarantee success, you are, at the very least, on the safest path to a passive income.

Some Basic Skills that Will Help

The landlord’s role is not a good fit for everyone. You need to have some solid “people skills.”

You need these people skills to deal with tenants. You must also pay attention to detail, avoid procrastination, and show empathy. If you are too sympathetic, you will end up as a doormat on the stoop of your tenant’s entryway. If you cannot honestly say that you possess these attributes, being a landlord is going to be tough for you. Honest introspection now can save you considerable grief later. This passive income stream is a home run for the well prepared.

Are there any landlords reading this post? We encourage you to share your thoughts, suggestions, and experiences in the comments section.

Passive income is a financial stream that is derived from little or no extra effort. Most passive income streams are derived from investments, however with the advent of the internet people can also generate passive income from online business ventures. Other ways for generating a passive income includes collecting royalties, fees, taxes and payments from third party sources. When a person is able to generate a passive income the amount of money that they are paid will vary. In some instances the generated amount will be the same and at other times it will vary. Once a person starts to receive a passive income they can use this extra money to help out friends who are struggling to keep their bills paid.

The first thing that a person with an extra income can do in order to help out their friend is to give the payments that they receive to their buddies. They can do this for a temporary time period and they should set up a payment arrangement that will explain when the payments arrive and how they should be used.

It is important for people to specify that the payments should be used for something important because if they are not friends could easily take advantage of peoples generosity. The plans should include an outlined summary that specifies that the money should be paid for utilities, rent, car notes or groceries. These things are necessities and important for people’s survival. A person should be leery about giving residual income to a friend who wants to use their payments for questionable reasons.

The best way for a person to know how to help your friends with a passive income is to show them how to derive a passive income on their own. Once a person is shown a practical way with how to generate a passive income they should be able to amass residual payments on their own.

People can generate a passive income through investments such as stocks, bonds and mutual funds. They can also generate an extra money over specific time period by renting out property or by creating an informational product which can be downloaded online for residual sales. If a person is able to write a catchy song or jingle they can receive royalties from the tune that is able to put money into their pocket every time the song is played.

How to help your friend with a passive income is not difficult as long as they understand that you are trying to help them out until they are able to support themselves once again. The main thing is show your friend how to make a passive income on their own so that way they too can generate extra income.

In 2013, many Americans needed to watch their finances. They found themselves cutting back on various expenditures, and they slimmed down their budgets. Since the recession was ending, there were many people that were able to look into purchasing homes, but for many others, they were worried about losing their jobs.

Being an average financial American during 2013 was an experience that many people want to forget. They want to once again have the ability to buy the things that they want without being worried that the economy will get bad again.

Another thing that many Americans experienced was the ups and downs of the stock market. In the beginning of the year, the stock market was low. Towards the middle and end of the year, it got better, and they were able to recoup the losses that they found on their IRA accounts. Many people also found that they were a bit weary of investing in stocks. They were interested in having investment advisors let them know what the best options were when they wanted to invest in various stocks.

During the 2013 year, there were many people that found ingenious ways to get more for their money. Many hotels, and vacation destinations offered bargains during the year. They were able to get a lot of money off for traveling at certain times of the year. This permitted them to still have a vacation even though times were tough.

There were a lot of weather related problems for many people during the 2013 year. Since this caused them difficulties, they had to rebuild and make do with what they had. There were many other people that did not have problems that donated to the various agencies that could help the suffering people to recover their losses.

Being an average financial person in 2013 meant that people had to learn how to shop wisely. They clipped coupons so they could afford to get the things that they needed. They were also aware of the tremendous amount of people losing their jobs, so they were worried if that would happen to them.

The lessons that were learned during the 2013 year by the average American were very important. They were able to get through the difficulties by helping each other. Since they looked forward to better financial times, they were able to use optimism and faith in order to change their situations. Being able to weather the financial storm is a blessing for many people because they can feel comfortable that they will be able to get through various situations in the future. Making the most of a terrible situation is what many of them had to do, and they are much stronger because of it.

Many people who want to accomplish basic goals often create a bucket list. This list may include many things an individual wants to accomplish before they die. A bucket list can include traveling to offering their time for charities. One thing that many people do not think about is creating a bucket list that will be used to reach specific financial goals. Review a few ideas for a financial bucket list. 

Own Your Home

There are many people who are spending money to pay rent each month. The money for rent can easily be used to make a house payment each month. A home is seen as having financial freedom that often is a milestone for an individual or family. One thing to keep in mind is not worrying about eviction or the problems with neighbors being in close proximity.

Pay Off Debt 

One of the biggest expenses for families and individuals is paying a mortgage. This will need to be one of the items that should be near the top of any bucket list. The main benefit is not needing to ensure the mortgage payments are being made each month. Most people occur significant levels of stress which is due to having increased debt levels. This can include migraine headaches and anxiety. Paying off debts will be the best way to ensure they will not be a burden after retirement.

Build A Retirement Fund

Many businesses have replaced a traditional pension with standard retirement accounts. This is often in the form of an IRA or a 401 K. The goal for any worker is to grow their retirement account until is is at its maximum. Most workers often put in a minimum amount which means most accounts are often well below $75,000. Individuals will have a less stressful life if accounts are at their maximum. The amount that should be added to retirement accounts each year is about $15,000.

Education for Children 

One important goal for many people is saving money for a child’s education. Families are being told by many financial experts to conserve their money and have children take out loans. Most parents will use a combination of savings and loans for a child’s education. The average tuition for college students will be about $17,000. Parents will need to start savings for their child’s future early. This will be a task that should be included on any parent’s financial bucket list.

Emergency Funds 

There are many events which can occur that may be unexpected and require financial reserves. A home may suffer damage from a storm or even a fire. Individuals in a home may also have a health issue that may require a lengthy hospital stay. The goal of an emergency fund is to have money that is needed for unexpected expenses without suffering additional financial pressures.Many things can be added to a person’s financial bucket list. The most important thing to do is have a list of financial goals to meet by a specific time in your life.

Many investors chase small companies that might have a promising future. While these gambles may pay off for some, many people end up losing their hard-earned money. In reality, an investor who is in it for the long haul must buy dividend-paying stocks. Here are seven reasons why you should love dividend stocks.

Security

Most companies that pay a dividend are already established in their industry. When a company is established, the stockholder will enjoy owning a piece of a company that will likely stay in business for a long time. An investor who wants stability and security should seriously consider investing in a company that returns profits to shareholders.

Guaranteed Money

While most shareholders ultimately lose money in the stock market, an investor who owns shares in dividend-paying companies will likely see serious gains. Historically, companies that pay dividends have rewarded shareholders with a solid return on investment over the long haul. Of course, when researching a dividend-paying company, an investor must do their due diligence.

Honest CEO

Many great companies have experienced bad times when the CEO makes ill-advised moves with company money. When the company must return money to its shareholders, the people running the company have to make wiser investment choices.

Re-Investment Opportunities  

Some brokerage houses allow the shareholder to reinvest dividends. An investor who reinvests dividends will do well in the end. In fact, holding dividend-paying stocks for the long haul is one of the best ways to create serious wealth.

Better Than a Bank

The interest rates available at banks are paltry. Most dividend-paying stocks will give a higher return on investment than a bank or credit union. At the same time, a shareholder will possibly see the stock price appreciate.

Buy and Hold Wins

Most active traders end up losing money. A person who buys shares in a stable company that pays a dividend will make money without doing any hard work. Not only that, when a shareholder holds a stock for a long time, he or she will not spend too much money on brokerage fees.

Taxes

When making investment choices, many forget about taxes. Depending on the tax situation of the individual, a dividend-paying stock may be a great investment. The Internal Revenue Service and most states treat dividends more favorably than other investment gains. Of course, one must consult a qualified tax specialist as tax situations differ from person to person.

In reality, most shareholders end up incurring large losses in the market. When an individual can look past the hype and buy shares in a well-established company, he or she will have a solid investment gain without all the drama. Without a doubt, a smart investor should include dividend-paying companies in his or her portfolio.

I currently live in the great state of Michigan, and we recently got dumped on with snow! It started to drizzle Thursday afternoon, and as the temperature decreased, that drizzle slowly morphed into snowflakes. Once that snow started coming down though, it seemed like it never stopped! It continued through the night on Thursday, all day Friday, and the entire Saturday as well! Once it finally stopped, we were left with about 14 inches of snow!

Bring Out the Plow Trucks

While snow is just a given in Michigan, so are the plow trucks. It seems like everyone that owns a truck has a plow handy, just so they can make a few bucks by plowing out some driveways. So, as the snow was coming down on Friday and Saturday, the trucks were out in full force.

I expected to see the trucks, but what I didn’t expect to see on that Saturday afternoon was a man carrying a snow-shovel…

The Man With a Shovel

As I was sitting in my living room, working on my computer, I saw a man pass by my front window. He was wearing snow pants, a red and black winter coat, some good boots, a charcoal grey winter hat, and some dark black gloves. And, of course, he was carrying his snow shovel.

My initial reaction was to get up and check out what he was doing! As I peered out the window, I noticed that as he walked by each house, he was checking the driveways to see if they were cleared. If they were not, he would walk up to the front door and knock, no doubt asking to shovel the driveway for a few extra bucks.

What a great idea! For each driveway, I bet he could earn $15-$20. Sure it would take some time and effort, but his initial cost to make this profit was that $5 shovel! That is one heck of a low start-up cost for a potentially large payout! I bet that he could have made $200 that day – all cash. Good for him.

How Do You Make Shoveling into a Passive Income?

Since I have begun this site, I am constantly thinking about how passive income can be earned. It really is a great challenge, and it allows me to expand my thought process in regards to wealth accumulation. A few months ago, I would have watched that man and I probably would have decided to shovel some driveways myself! But, this income is definitely not passive, and it is severely time-intensive.

As I watched that man walk up to each house, I wondered if he liked to give his sales-pitch. My guess was that he hated it. All he wanted to do was shovel the driveway and collect his $20. And that gave me my passive income idea.

What if I could guarantee this man $225 every time it snowed? He wouldn’t have to walk up to any houses. All he would have to do is step into the driveway and start shoveling. And, all I would have to do is make the appointments once for the entire year!

Here’s how it would work. In the fall, I would begin making my rounds to all of the houses in the area, asking if they would like their driveways shoveled out for a low rate of $20 per snow of 2 inches or more. It would be done well, and it wouldn’t ruin their cemented driveway like the plow would.

Let’s say that I contract 15 houses for the winter. I’d pay the shoveler $225 per outing (the 15 driveways for $15 a piece), and I’d keep the remaining $75. If it snowed 20 times that winter, I just made a cool $1,500 by making a few phone calls in the fall! And, the shoveler is happy because he didn’t have to talk with anyone. All he had to do was shovel for a quick $15 a pop!

Do You Want to Earn More?

Obviously, one shoveler can’t cover 20+ driveways per day, so how do you begin to earn more than $1,500 through the winter? It’s really simple actually, ask the shoveler if he has a buddy that would like to earn some quick money every time it snows! Keep doing this, and all of a sudden you could have 100 contracts and earning $15,000 on the side! Now that’s what I call creating a passive income.

We shouldn’t be the one to tell you that having passive income is the best source of income. Not only do you not have to do much once you get it going but if done right, it can be a long-lasting income. Not all investments are passive and not all passive investments are guaranteed. It can vary from how your money grows but having a high-risk investment platform can definitely make you worry. On the long bull run we have been having, many people in the stock market are starting to think the same thing. That is why some people are switching over to cryptocurrencies even though it is having a better rate on investment than anything else. Many people are speculating in cryptocurrencies but playing for the long term might be a good idea. Knowing that the blockchain and digital currencies are the future, they’re here to stay. Many people are going straight to trading Bitcoin to be more active in the crypto space while others like to sit back and make passive money.

Earning passive income through cryptocurrencies can be a good possibility. No doubt you will be taking a risk but it’s always a risk to invest. We are not financial advisors so invest with great diligence and be cautious.

How to Make Passive Income with Cryptocurrencies

Airdrops

Many developers of certain coins or tokens will distribute more of the coin or token for free or a small task. They usually do this to ensure early distribution. Sometimes it’s done as a thank you for the holders of the specific crypto.

Forks

Forks in cryptocurrencies are when a group of people don’t like how a specific coin has become or the route it’s going so they choose to make a new derivative of it. When this happens, you usually get the same amount of coins on the new crypto as you did on the old one. For example, Bitcoin just forked and created Bitcoin Cash. You get a 1:1 Bitcoin Cash as you had Bitcoin.

Capital Gains

This seems like an obvious one but people often overlooked this when taking into account passive investing. As you probably know, the crypto bull market is really strong. It’s not expected to always to go up and there can be a bubble like it’s being talked about. However, with digital currencies being apart of a payment method, picking the right ones you have faith in can do well during the long term. Buying back into coins that have dipped can be a good idea but it is risky.

Mining

Mining for cryptocurrencies is not exactly how it sounds. Instead of taking shovels and going digging, you use specific hardware like graphics cards or CPU’s. For specific cryptos, you use ASIC’s (Application Specific Integrated Circuit) which are expensive hardware created to mine Litecoin, Bitcoin, etc. GPU and ASIC mining can be very profitable if you get your equipment for a good price along with low cost in electricity.

Staking

Staking is not the same as dividends but some people can look at it like that. Staking (Proof of Stake) is the process where you leave your wallet open and get a percentage of the coins or tokens you hold. For example, Neblio is a token which stakes and gives you 10% of the amount of coins you already hold per year. So throughout the month, you have the tokens be added to your wallet.

Running a Masternode

In order to be a part of the infrastructure of any particular crypto coin, you should have to help to secure the network and in return, you will get some coins. The main advantage of running a masternode are:

• Nice and passive, as you can leave your server or raspberry pi running and accumulate coins.
• You are able to work out that how much income you are generated every month, but the values of coins vary in each month compared to fiat currency.

Lending Services

With fiat money, banks are making money off interest through lending but with cryptocurrencies, you are your own bank. Now you can invest your coins back into services and make some interest off your principle capital. Since it is a new industry, be very wary of where you park your money. One of those services which have been considered a scam is BitConnect. Nothing has come out of it yet but it has had some shady tactics. There is also SALT lending which is a bit newer.

A Little Work is Required

Although we encourage passive income investing, a little bit of work would be required to make sure you are getting the most out of your money. Listening to a few people without doing due diligence can be a nightmare in hindsight. Always make sure you do your own research and check out everything you put your money into. Just because the whole market is going up today, it doesn’t mean it will be the same tomorrow. Getting in early is key but not everyone has had the opportunity for that. Be risk averse by knowing what you’re getting into. Money is not all that counts, your time does too.

Today’s challenging occupational market requires workers to cultivate personal workplace characteristics that lead to success. Jobs are unique and employers vary, but there are simple actions anyone can take to position themselves for career advancement. Here are 5 tips for getting promoted in any work environment. 

Observe

Look around. Listen. Ask questions. The valuable employee understands her corporate surroundings and the company mission. Learn how company roles interact and how the roles complement the big picture. In a fast paced business culture the tendency to give attention only to assigned tasks creates myopia. Pause a moment to gain perspective on how the company works together. Be observant.

Collaborate

Collaboration often becomes a cliche, but that should not diminish its value in a dynamic work environment. Business collaboration is more significant than simply getting along with coworkers. Working together includes seeking contribution from others and developing their ideas. It also incorporates delegation and partnership. The successful individual engages his team to develops a give and take process that assures measurable results.

Execute

The key employee hoping to raise up in rank must perform assigned functions with excellence. This requires attention to detail and focus. A high performer will know the end game and follow the assignment through. Execution can vary from job to job, but it will present itself in one form or another. A call center manager may need to answer the inquiries of three disgruntled customers by day’s end. Whereas a VOIP sales person may need four months to complete a sales cycle. Both have to manage their responsibilities to completion to attain achievement. The employee seeking advancement will overcome procrastination and sloppiness, the tandem enemies of execution, and fulfill their goals.

Go Beyond

Everyone can think of a time in life when someone went beyond the call of duty to help them. These small acts of extra effort build momentum for a business. Companies large and small live and die on their reputation because our modern age allows an aggrieved party to voice their complaints to the world via internet review. One call or handwritten note can earn brand loyalty. The prescient worker recognizes the value of a small act that engenders public accolades and takes steps to ensure the concept of going beyond is integrated into his workflow.

Step Up

Getting promoted can hinge on stepping up. A diligent worker is confident in his skills and willing to take risks. He sees value in his team collaboration and personal contributions. He will be proactive in the presentation of his business activities for review. This balanced approach to ambition values achievement, work ethic and leadership while avoiding arrogance and self-promotion. He steps up to challenges and responsibilities that stretch him and his team.Although getting promoted is not an exact science, these 5 tips can prepare you to be a better contributor, a team leader and a future manager in a fast paced business environment.

As this economy tightens our belts with inflation, you may wonder how you can make your money go farther, or be able to save up for retirement. The key to success is approaching these forms of passive income as a learning process and doing as many of them as you can. You may need to set up a goal and list steps or a project management system to manage them in your free time. 

1. Diversify Investments

Remember that having a lot of investments does not equal diverse investments. It means you need to have one of each: Stocks, Bonds, Real Estate, Investment Accounts, Cash on Hand, Social Security, Retirement Account, 401k and IRA, Pension, Health Insurance, Life Insurance, Savings and CD’s.

2. Create a Passive Income

While to some this suggestion means joining an MLM company and delving into network marketing, for others it means turning a hobby into an income stream. Consider keeping a monetized blog, writing an ebook, or contributing to a paying magazine, online periodical, niche blog, or niche website.

3. Find/Create a Part Time Job

Find simple local jobs you can easily fit around your schedule and use to fund those investments in section one. Consider turning a hobby into a part time job or using your knowledge to teach others. Other ideas may include being creative and figuring our what your town or neighborhood needs and filling it.

4. Go Freelance

Freelancing means you sell photography, articles, or other media. This could mean selling stock photos to reseller sites or posting articles to writing sites for sale.

5. Lending

Lending to friends and family is not always a wise idea. Consider setting your sites in signing contracts with companies who lend to small business owners, women business owners, and women in other countries. The payout in a month or a year can be double or more of the original investment.

6. Grow Food

While you may need to file for a business license or permits, you can consider putting in a patio garden or small backyard garden, or even fruit trees, and selling the produce at flea markets and farmers markets on the weekends. At the very lease, you can reduce and almost eliminate your grocery budget.

7. Reallocate Existing Income

While this may not seem like an income source, reallocating funds from one part of your budget and making serious budget cuts can create what feels like more income. Consider cutting back entertainment and eating out, and then, finding ways to lower your utility or housing costs.

8. Consider Taking on an At-Home-Job 

Work-at-home careers often let you set your own schedule and offer positions for as few as five hours per week. Types of positions include selling airline tickets and providing customer service for products already sold, brand name computers, for example.

9. Secret Shopping and Product Reviews

Secret shopping asks you to go and purchase certain items at stores or restaurants and then rating the product and the service experienced. Product reviews includes products shipping to your home, after you try them you fill out a survey.

10. Tutoring and Consultations

Consider signing up for tutoring sites or consultation sites and putting your skills to use teaching others. You get paid per meeting and are able to pass on valuable knowledge in your area of expertise, without much further effort on your behalf.