Investing: How to Be More Conservative With Your Money

Many people think that saving money is enough to secure their future. This could have worked years ago when the economy was flourishing. But in today’s challenging financial climate where frequent price hikes cripple markets and employment is far less stable, saving just doesn’t cut it. People have to be smarter not just in the way they spend, but also how they save money. Investing is a great way to increase the value of your money over time. Those who aren’t exactly the natural born investors or the next Donald Trump will find the process laborious. Nonetheless, it can be done, and this guide will help you along the way. Know what you want to invest in. There are more than dozen investment tools you can choose and invest your hard-earned money on. Although each option looks like its going to generate money, some investment products expose your money to a great deal of risk. Buying shares is a way to invest, but the level of complexity involved suggests that more advanced investors pursue it. Binary options, on the other hand, may be considered by some as an investment option as well yet some experts consider it to be more of a gambling platform.

A good basic investment tool for beginners is a government bond. This, however, may take time to mature and generate returns. It does offer protection from inflation. When choosing the right investment tool, make sure you understand it by reading related information. Look for good and reliable resources from the Internet or a book about investing.

Repair your credit. Prior saving, you must first be free from the clutches of debt. Even a small loan can impact your ability to save. After your income is freed from debt and interest rate payments, it can easily be redirected towards your retirement fund or a savings account. If you want to begin saving even before you entirely wipe off your debt, enter a debt consolidation plan, which minimizes the interest rate you incur over time.

Set your saving objectives. Saving for the short term is easy. You can save your month’s worth of paycheck for a new fridge or a week’s allowance for a new video game. For long term goals, however, you will need to put a lot more into it. You have to figure out how much wealth you need to save to live comfortably after retirement. You will also have to check how investments affect you in accomplishing objectives.

Establish an emergency fund. Investing the bulk of your wealth to a bond or checking account that can be touched only after a few years opens up the issue of being financially insecure in the event of a spontaneous incident. Make sure you have an adequate emergency fund you can take from whenever you need it otherwise you’ll just end up ruining your long term investment portfolio.

Use these tips to invest today. Seek advice from an experienced investor or someone who is economically-versed whenever you encounter blurry areas.


Changing Mindsets: Switching from Short-Term to Long-Term Thinking for Finances

Creating wealth is more of a marathon then a sprint. While cases of people quickly accumulating wealth no doubt exist, these stories are the exception rather than the norm. Unfortunately, these stories are overly publicized which often gives observers a bad idea regarding how to become wealthy. Coming to accept that quick access to money is not common is an integral step along the path towards putting yourself on a sound financial footing. This article will attempt to put you on a sound footing financially by identifying ways that you can concentrate more on the long-term picture with finances rather than short-term gains.

Having an overall plan for gaining wealth is an integral part of this process. Having said that, your plan should be realizable and practical with steps that can be undertaken to bring your plan to fruition. Deciding that you are planning on winning the lottery is not a reasonable goal for yourself. While this is an extreme case, many people build unreasonable gains into their projections including salary raises that are not typical in their profession and market gains that are the exception rather than the norm. When planning out your plan for gaining wealth take a long-term view centered on actionable steps that you can undertake to get to where you need to go.

For example, if you are planning on gaining wealth by starting a business, consider how you are planning on gaining the seed capital to start the business. What are the prospects for the business and how do you hope to gain money through this business model. What are the risks and opportunities in the business and how can this translate towards earning money for yourself.

Many individuals concentrate on improving the inflows of money but do nothing to monitor the outflows of money from your accounts. Since wealth is added to your savings by taking your income and reducing it by any expenses you may have, you will be significantly wealthier by reducing many of your expenses. Preparing a budget is an essential part of gaining long-term financial independence. Start by monitoring what you spend money on and then look for ways to streamline your finances. Small reductions in expenses in one year may translate to large gains over a lifetime. In addition, you will have additional investment capital that you can invest and earn additional amounts on over a longer period of time which provides for a more sustainable source of wealth.

When making investments with your investment capital you should try to take a longer term perspective as well. Day trading can yield you significant profits, but can also lead to significant losses. Having a long-term perspective is more beneficial in investing. Over a period of time, most investments increase in amount due to inflation. Have a wide portfolio of investments in stable companies in varying industries and yield the rewards of long-term gains as a result. Studies have shown that investing in this manner often yields higher returns than other forms of trading.

A long-term perspective is generally considered more beneficial for individuals looking to gain wealth. In addition, it is typically considered to be a more sustainable source of wealth and is a more reasonable course of action for those looking to gain wealth over time.


Finance Tips: Think Practical For Your Money

There are many tips for an individual to utilize when looking to save money. However, it all begins with them looking at what their current finances are, what their current income is, expected income, expected bills, and ways to curb spending and to be frugal about purchases. When individuals analyze their finances properly, they can live comfortably in their means, and still be allowed to have fun and enjoy entertainment. Living practical with money doesn’t mean that people have to cut out all entertainment, splurges on wants every now and then, and other fun events. 

To begin with, people should ensure to look over their bills regularly to understand what debts they owe. When people don’t pay their bills on a timely basis, they can ultimately cause debt to bury them alive, in a figurative way of speech. On the same token, it’s also important for individuals to not spend their money without keeping track of it. This is also another way to cause debt to occur quite quickly; for example, individuals should make it a point to spend their money on bills and necessities first and foremost. Wants, and any other splurges should come after this. It’s also important for people to put their credit cards away in a safe drawer, unless they are needed in an emergency. Only then should credit cards be used; the reason for this is because of the steep interest rates and other applicable fees that come along with credit cards, therefore rendering individuals to become more in debt instead of being frugal and being practical with their money.

Next, people should live within their means. This means that they should do their best to avoid temptations for purchasing extravagant electronics, vehicles, or other costly merchandise. While marketers may do their best to convince the public that they absolutely need these items, the truth is, they probably don’t. If people do want to buy a certain TV, computer, or even an economical vehicle, they should heavily outweigh the financial decision, and save this type of purchase for a once-in-a-great-while splurge purchase. However, it’s truly advisable that individuals plan a purchase of this type, so that they’re able to make payments on time.

Other ways of living within means also comes down to everyday purchases, daily habits around the home, and parenting techniques. As far as everyday purchases are concerned, it’s recommended that people buy groceries, household items, and clothing frugally. What this means is, they should look for items that are on clearance, buy generic brands of groceries, clothing, and also household items. Many times, generic items are just as good, or even better than the name brand. Another aspect of spending frugally is looking for clothing items from discounted clothing stores, taking hand-me-down clothing, or accepting household items from a friend or neighbour in lieu of purchasing them.

Lastly, individuals should consider riding the bus to work or commuting with a co-worker to save on transportation and maintenance costs of a vehicle. As far as a residence is concerned, it’s recommended that people look for a place that fits theirs, and their family’s needs without being too extravagant. Furthermore, as a parent, people shouldn’t give in to their child’s demands for buying them everything they wish; instead, they should look for discounted clothing, and accept second-hand clothing from friends and relatives. Utilizing these techniques will help people to be more practical and economical with their finances; this in turn will allow them to get a handle on their debts, and allow them and their family to live comfortably.


Passive Income with a Kiosk

Many of us have aspirations of building up a passive income large enough to quit our jobs someday and retire like kings. The only problem is, I don’t think too many of us have a plan in place to make this a reality. If your plan is to work your day job until you’re 65, then you’ll most likely not even live like the King’s 3rd cousin. Budgeting will be a necessity and you’ll have to be very careful not to spend all of your money before you pass away.

This is obviously not what many of us dream about. “Boy, I wish that I could barely get by when I retire.” If you’re dreaming this dream, you may just want to stop reading now. This post is not for you.

If, however, you are looking to build streams of passive income, this might very well be the idea for you. Kiosks. That’s right, those kiosks in the mall. If you have the right product and a trustworthy employee, you could make some serious dough here.

Why Kiosks Are A Good Idea

If you’ve toyed around with the idea of opening a store, I would strongly encourage you to start out with a kiosk, and here are my reasons why:

  1. The contract terms are much less than if you would rent a regular store-front in the mall.
  2. You’ll see much more foot traffic in the middle of the mall
  3. It’s a cheaper start-up cost than a brick-and-mortar store
  4. It can be made passive quite easily

What Kind of Product Would You Sell?

Since many of the shoppers aren’t entering the mall to look at your kiosk, you’ll have to get their attention with something that they might purchase on the spur of the moment. In other words, you’ll need to sell something that costs $40 or less – with this low price, people are more willing to stop, look, and make that quick purchase. If your product is a high-end blender for $400, you will not have more than 10 lookers a day, and most likely will go without a sale.

This is why you often see chintzy jewelry and T-shirts – they are cheap, and people are willing to buy them without thinking twice.

Example Products

  • Ice cream
  • Snow cones
  • Clothing
  • Sunglasses
  • Jewelry
  • Stuffed Animals
  • Things for your Pet
  • Pictures

This list should help you get the ball rolling.

What Are The Costs of a Kiosk?

If you want to get started with a kiosk, you might be wondering what kind of costs are involved. Well, since your set-up will be smack-dab in the middle of the mall, there are some initial fees, as well as some fees based on your sales.

On average, you’ll have to dish out $1,500 before you even put your products out for sale, and then there’s a monthly fee of about $2,300 or 15% of your sales (the mall will collect the larger of the two amounts).

Then, if you’d like to create a passive income with your kiosk, you’ll need to find a dependable employee. Let’s say you’re paying them $10 a hour for 6 hours a day, 7 days a week.

Break Even

With these expenses, what should you shoot for in terms of sales? What will be your break-even point? If you can earn a 30% profit on each item, you’ll need to sell just over $20,000 of merchandise each month to start earning a profit.

  • Initial Expense: $1,500
  • Employee Expense: $1,800
  • Fees Based on Sales: 15% or $2,300 (take the higher of the two)

So, profits need to meet expenses, which totals to $5,600. If you can earn 30% on each product, then you’ll need to sell $18,666 to earn that profit of $5,600, which will allow you to break-even.

Once you break even though, your earnings could soar. What if you sell $50,000 worth of your product? After all expenses, you’ll have cleared $39,200 of pure profit!!

Making it Passive

Since this is such a small operation, all you need to do is find one trustworthy person to run your kiosk. Rather than pay them hourly, maybe it would be beneficial to pay them based on sales – it would be much more motivational for them to sell the product, instead of just sitting in the chair with their smart phone….

That’s it!

Have you ever thought about creating a passive income with a kiosk? What would you sell?


Passive Income with a Moving Company

Much of the time, passive income isn’t created overnight. Actually, more often than not, the income in the early stages is minimal and the hours are long and difficult. After a few years of hard work though, a business can be molded into a passive revenue stream that will send money your way, even when you’re not around!

Two Men and a Truck

The moving company, Two Men and a Truck, started in the early 80s (in my neck of the woods) by two brothers looking to make a buck while in high school. They started this business with a regular Chevy pick-up and two pairs of hands. Nothing more, nothing less. After making enough money with a few moves, the brothers invested in their very first box truck – it cost them $350. After growing their business within their region, they decided that it was time to franchise the company and become more than just “Two Men and a Truck”.

Today, their company has not just one truck, but 1,300. Plus, they are the largest franchised moving company in the United States. Not too shabby for a company that started with two high schoolers and a regular truck!

Are You Ready to Start a Moving Company?

The beauty of starting your own moving business is that you can start small! The bottom line though, is that everyone needs to move at some point in their lives, and if you develop relationships before that move happens, there’s a pretty good chance that you’ll be receiving their business.

The Initial Investment

You might already own a regular pickup truck. It that’s the case, then your initial investment would most likely be $0.00! But, if you do want to start your business with a box truck, they really aren’t that expensive either. I just found a 2007 Box Truck for $8,500. I could buy that truck tomorrow and start making money over the weekend!

In addition to the truck, you’ll most likely want some tie-down straps, some dollies, and some moving gloves. These items would maybe cost you $150 total, and are hardly worth mentioning.

Variable Expenses

The largest variable expense would probably be the gas that it would take to move the items from house to house – and along with that, the wear and tear on your vehicle. This should be factored in when deciding on the price to move a client.

Also, since people are sue-crazy these days, you’ll most likely need to carry some insurance in the event that their belongings are damaged in the move.

Making Your Business Passive

A moving company is a pretty straight forward business. There are boxes and furniture and they need to be moved from point ‘A’ to point ‘B’. In order to make the business passive, you’ll need to teach someone else the reigns and have them take over your position. This could take some time, but ultimately if it frees up the rest of your life, I’d say that it would be worth it.

Calculate the Profits

If you went out and bought that $8,500 and also purchased another $500 in equipment (and your business license of course), your initial expense in the business is $9,000.

You figure that each move costs you $100 when factoring in gas, repairs, and depreciation.

On average, you’re able to earn $400 for each move (the standard rate is $100 per hour), and you figure you can find 60 gigs in that first year.

Your income before expenses is $24,000 (not bad for a side-gig that’s soon to be passive). Take off your $9,000 for that truck, and the $6,000 in gas, repairs, and depreciation and you earned $9,000 in that first year (not including tax).

That first year may have seemed like a lot of work for 9,000 bucks, but in Year 2, you can create a passive income and earn more!

Year 2

The truck is paid for, so your only expense is variable, but you also decide to replace yourself on the job. Your new employee gets paid $16 an hour plus a potential bonus of $1,000 (for the year) if he keeps a clean moving record.

Let’s say that all goes well. Word has been spreading about your awesome moving company and you’re able to book 80 gigs for the year. Your employee worked all of the jobs and you did basically nothing. Here is what the books look like:

  • Gross Income = 32,000
  • Gas/Repairs/Dep. = (8,000)
  • Employee Cost = (6,120)  – 16*(4 hours)*(80 gigs) + 1,000 bonus
  • Net Income = $17,880

So, you made almost double the income and worked hardly at all! Sounds like a pretty sweet passive income source to me.

What are your thoughts of a passive income with a moving company?


$10,000 a Month in Passive Income, Part 2 of 2

Within part 1 of this article, I taught you what it will take to put yourself in a position to earn $10,000 per month. Now, it’s time for the details of developing a business that will actually give you the income. Not only am I certain that you could earn $10,000 per month, I believe that you could achieve these results in less than 10 years, plus, you’ll be 100% debt free!

Based on my last article, you should already know the first three steps to preparing yourself for wealth:

  • Rent out some of your space – if you can rent out 2 rooms, you could be earning an extra $600 per month that could go toward your future investments
  • Live on way less – Do whatever you can to save some extra bucks. Stop eating out, get rid of your car if you can (they’re expensive all around), and always buy used
  • Increase your income – Here are some great sources for you to get started: 101 Ways to Make More Money (free eBook by subscribing), and Grand Per Month (an excellent website that shows you how to earn an extra $1,000 per month)

Now it’s time for the investment! By investing right and paying off your debts, I truly believe that you can earn $10,000 per month sooner rather than later.

1) Invest in Rental Properties

As long as you can find a deal, I really don’t mind what type of real estate you invest in. For now though, let’s assume that you’re going to invest in multiplexes. Personally, I like quadplexes. There are 4 units within one investment building which not only gets you more for your buck, but it’s much easier to keep an eye on one building rather than 4.

In my area, properties are cheap. I found a quadplex for $85,000. Each unit has at least 2 bedrooms, and some of them even have 3. They can easily be rented out for $700 a month. With proper marketing and renter selection, we’re going to assume that we can always keep 100% occupancy. I realize that this is the best possible scenario, but let’s just roll with it and see where it takes us.

2) Reinvest the Earnings

If you take your money and buy things like cars or boats, you won’t go far. But, if you decide to reinvest the earnings back into more investment properties, then your future earnings are limitless. Do this for long enough and you’ll soon be buying yachts for cash rather than domestic cars or little 18 foot boats.

With the extra money you earned by renting out your spare rooms, by living on less, and buy earning an extra income, you could pocket an extra $2,500 a month. After just 4 months, you’ll have a great down-payment on your first investment property. If you purchased the property right, you should be paying only 80% or less than the asking price.

For our $85,000 property, I would pay no more than $70,000, put my $10,000 down, and get the remaining $60,000 from the bank on a 30 year note. So, my payment each month would be something like $300, which is nothing compared to my potential earnings. If we put our $2,500 a month, plus the $2,800 in rent toward the mortgage, we could have this quadplex paid off in a year! Now we own 100% of our investment and it’s still yielding us $2,800 a month.

Now it’s time to reinvest! If we’ve been shopping around for other properties while we were paying off the first one (and we definitely should have been), then I’m sure we’ve already got another money-maker in our sites. This time, we found a quadplex in a better part of town that costs $150,000. Sure, it’s more expensive, but the tenents are more predictable and the rental income is $1,00o per unit, not $700. With this new income of $4,000 a month, our available cash each month is $9,300! If we put that toward the mortgage payment each month, we could have this investment property paid off in only a year and a half!

At this point, we’re about 3 years into our plan and you own $230,000 worth of investment property and you have a passive income of $6,800 per month. At this point, all you have to do is find one more quadplex that’s similar to the last one. Purchase it at $150k and use your $13,300 (4,000+4,000+2,800+2,500) to pay it off in just a year.

Now you own about $400,000 worth of rental properties and $10,800 in passive income. It’s time to quit your job and continue to build your rental empire! 

It Didn’t Even Take 10 Years

Did you notice  how long it took us to earn our $10,000 per month with zero debt? It took less than 5 years!!! Of course, that’s if everything goes perfectly and if you have zero expenses (which obviously never happens), so rather than predict the impossible, I gave you an extra 5 years. If this works on paper in just 5 years, you could easily do it in ten.

What do you think about this plan? Could you do this? Is it part of your future plan?


Creating a Passive Income Through Social Trading

Creating a Passive Income Through Social Trading

Platforms allow newcomer investors to follow up on the trades of expert traders and copy their activity. Although it is extremely simple to sign up with social trading programs and brokerages and participate in the lucrative FX market, it is always advisable to perform a preliminary research before pulling the trigger.If you’re looking to diversify your investment profile, you can consider investing some of it into forex and CFD’s. If you don’t have the prior knowledge or experience to make trades on your own, you can use social trading platforms
The first thing potential traders need to realize is that the forex market can be extremely volatile, that trading is often leveraged, and how unexpected losses may occur. The type of people who should be involved with it are people of two types – either financially established individuals who can utilize CFD trading as part of a diversified investment profile, or investors who are willing to put their money at tremendous risk with the hope of yielding a very high return.

The second thing potential investors should know is that both social trading platforms and FX trading brokers offer demo accounts. These accounts allow investors to check out the platform without actually depositing any money into it. It’s always a good practice to sign up for demo at the beginning, and proceed to a real money account only at a later stage.

The third thing potential investors need to thoroughly check is the regulatory body approving the activity of the firm he wishes to sign up with. It is expected clients will uphold the same type of scrutinization they use to inspect other financial service providers like their banks or their insurance company.

Retail forex trading is an extremely tricky industry – there’s a lot of scam and dishonesty with many of the brokers; Regulatory supervisory help maintain a certain criteria and can be used to issue complaints against the firm. Not all regulatory bodies are alike though, it’s always good to stick to brokerages approved by one of the main regulators: The Financials  Conduct Authority (UK), CySEC (Cyprus), National Futures Association (USA), ASIC (Australia) or Central Bank of Ireland.

The safest platforms for social trading would definitely be the market leaders. Well-backed world-renowned firms with a long trading history of millions of trades by hundreds of thousands of traders. There are only two large niche dominators – eToro and Zulutrade whose comparison you can view here.

The fourth thing relates to the actual trading process. For investors who are interested in generating steady passive income rather than quick wagers on the market, it is advisable to focus on long-term trades with low leverage, spread across a variety of instruments (or spread over a multitude of traders, with social trading). Diversifying the investment over a large number of positions which with minimal leverage will help reduce volatility. The downside is that commissions are usually taken on a daily basis, and will eat off some of the profit that can be made with such long-term positions.

The last thing to know about social trading is that there are many antagonists who claim social trading is a sham. They claim that following a successful trader doesn’t really promise anything, because of the inevitable lags between the trade execution. Over a large number of trades copied, a significant deviation should occur. That means a someone could be following a successful trader and making less money than him (or even losing). It’s extremely difficult to scientifically approve or disapprove the claim.

In conclusion, forex trading and social copy trading can be used a high-risk form of investment, but there’s no reason to jump the gun before an appropriate research that could very well make the difference between a winning and a losing investor.


Passive Income by Renting Farm Land

Do you have any idea how profitable renting out farm land can be? If you’ve ever read about Warren Buffett and his early investments, you know that he purchased land early in his life to rent to the local farmers. It was one of his first passive income investments! If it’s good enough for Warren Buffett, I suspect that it would be good enough for the Average Joe as well.

Purchasing the Property

In my area, property is pretty cheap. Farmland can be found for about $10,000/acre. In fact, just by perusing Craigslist, I was able to find a property with a house and 60 acres for a listing price of $595,000.

Leasing the Property

So the real question in this passive income article is, “How much does farm land lease out for?” According to Jim Ochterski of Cornell University, a property owner can charge approximately 4% of the land’s value to the local farmers. This percentage is meant to cover the property tax as well as the insurance needed for the property, plus a little extra for a profit.

For our 60 acre farm, 4% would equate to $23,800 per year, which is 100% passive.

Future Value of the Property

Property is really a wonderful thing to own. If the real estate market is up, or if the city is expanding into your area, your property value could severely increase over years. Plus, it’s a nice hedge against inflation. If we kept our money in a savings account yielding practically no interest, our purchasing power would go down as the price of food and clothing went up. However, by owning property, our purchasing power remains the same (at least) since the value of the land increases along with the rise in the cost of the essentials.

Is It Worth It?

As we established earlier, the 60 acre farm would cost $595,000 initially. Property tax and insurance would probably cost 2% of that value each year, which is about $11,900.


  • Initial expense: $595,000 (we’re paying cash)
  • Cost per year: $11,900


For just renting out the property, we’d receive 4% of the value, which is $23,800. But, we should also take into account the average increase in property value, which is about 5% or $29,750.

  • Rental Income: $23,800
  • Property Value Increase: $29,750

For the first year, we’d earn $53,550, minus the expense of $11,900, leaving us with a grand total of $41,650, or 7% of our property value.

Sure, it would take us approximately 10 years to recoup our initial investment, but this income is 100% passive and the increase in property value is tax free up to $500,000 (if you are a married)! Now your income each year feels more like 10%!


My question is, “What if I held onto this property and rented it out for 30 years?” How much would that 7% increase be worth to me? The answer: $4.2 million dollars! I think it’s about time for me to save up some money to buy land! 

What do you think about this plan? Would you ever look into buying land to lease to your local farmer?


Earning a Passive Income With Kayak Rentals

Have you ever been in a kayak? Who provided it for you? Did you own it? Did your friend own one? While there are some people that actually own their own kayaks, I’m guessing that yours was a rental.

Starting Your Own Kayak Rental Business

If you want to create a passive income with a kayak rental business, you’re obviously going to have to be near a lake. I happen to live near Lake Michigan, which is absolutely beautiful in the summer time. In my area, there are definitely seasons when kayak rental is not possible (like, at least 6 months out of the year when it’s snowing), but let’s see how profitable it would be to rent out kayaks for the other 6 months.


It doesn’t have to be much, but you’ll have to have some sort of property where you rent out your kayaks. You could rent a small area from a local business and put up a portable shed to keep it cheap. It’s not a bad idea considering the potential market is still a little uncertain (after all, we are just starting this venture and can’t predict exactly what will happen). Because your plot is so small and you aren’t really bothering your “landlord”, the rent is cheap at $300 a month.

In order to rent out some kayaks, it might be a good idea to own some. To get started, let’s say that we buy 5 kayaks at $400 a piece. A total expense of $2,000.

Along with these, you’ll need some life jackets – a random set of 10 costs you $200.

Also, if you want to make your business 100% passive, you’ll have to pay an employee. It’ll cost you $8 an hour, 7 days a week, for 8 hours a day. For the 6 months, this will cost you $11,648.

Potential Income

There’s only one way to earn an income in this business – rent out your kayaks! Your location is near the beach and you have signs advertising your business (there’s really no need to advertise any other way – all the water lovers can see your business as they walk down to the beach). Here are the average rates:

  • $10 per hour
  • $30 for a 1/2 day (4 hours)
  • $50 for a full day (8 hours)

We’re obviously not going to be able to rent out all 5 kayaks all day, every day, so what’s a realistic expectation? For the span of 6 months, let’s say that, on average, we rent out 2 kayaks for a half day. That’s a total of $60 a day.

Is It Worth It?

With the given scenario, what are the total expenses?

  • $2,000 for the kayaks
  • $200 for the life-jackets
  • $300 rent for 6 months = $1,800
  • Employee = $11,648
  • Total 1st Year Expense = $15,648

What is our estimated income?

  • $60/ day for 180 days = $10,800

If this was the true structure of our kayak rental business, we’d be losing about $5,000 in that first year, and then continue to lose about $3,000 in the years after that.

How to Make This Venture Profitable?

A sure-fire way to make this business profitable is to do the work yourself. By sitting at the kayak rental, you’d save $11,648, which would earn you a profit of $6,800 for that first summer, rather than running your business into a deficit.

If you still want to keep it passive, perhaps you could run your business by appointment only. You’d rent out fewer kayaks, but you wouldn’t have to pay your employees to sit around and do nothing this way either (they’d only have to meet your clients for the appointment times). I assume that this method would soon swing your business in the black again.

What do you think about this passive income idea? Would you ever try it?


Passive Income With a Driving Range

If you know me at all, you know that I love to play golf. I don’t get out as much as I used to, but it’s still fun to get out and chase that white ball around for a while. Now, I do enjoy playing golf very much, but I also enjoy scoring well (I’m a little competitive), so to get my practice in, I often attend the local driving range.  Here’s the problem with just practicing however.  I only spend money, I never make it.  Here are some ideas for creating passive income from a driving range:

The Passive Income Concept Set-up

This past summer, my brother and I went to a new driving range, and it took us a few minutes to figure out the whole operation. At the usual range, there was an attendant that took the money, handed out the balls, and got in the golf ball picker once in a while to refresh the stock.

At this new driving range, there was absolutely no booth for an employee to sit. Instead, there was a token machine and a golf-ball dispenser. So, I inserted my $5 and out popped my token. I then grabbed a basket, put it in the next machine and inserted the token – in no time flat I had my basket of balls and I was off to hit some balls.

The only employment this business needed was someone to give the range a quick mow, to move the ropes, and to pick up the balls at night and load them back into the machine.

Crunch the Numbers

This sounds like a pretty slick passive income operation doesn’t it? Well, let’s find out. It’s time to crunch the numbers.

Fixed Costs

The big expense is obviously the land. In my area, I could buy a 15 acre plot of land for $100,000, but I understand that land is cheap here, so let’s say it would cost $200,000. Add the ball-retriever ($5,000), golf ball dispenser ($5,000), and token dispenser ($3,000), and lawn-mower ($3,000) and we’re looking at an initial investment of $216,000.

Variable Costs

The day to day operation costs will be the employment ($30/day) and the maintenance of the range (property tax, machinery, grass seed, water, flag sticks, etc.). I estimate a yearly expense of $15,000.

Income Per Golfer

At most driving ranges a basket of balls will cost about $6. I’d say that on average, each range will see at least 20 golfers per day, which would yield a revenue of $120 a day, which equates to $3,600 a month.

In my area of the U.S., a driving range can only be open for about 6 months, so the expected revenue for the year is $21,600.

The Final Numbers

After the large investment of $200,000, the driving range business isn’t all it’s cracked up to be. While it is quite passive, the yearly income (after expenses) is only $6,600 before income tax. It would take about 50 years to recoup the initial investment!


For me, I could buy the land for cheaper – somewhere around $100,000, and if I could average 50 golfers a day instead of my estimated 20 golfers, then I could recoup my initial investment in about 4 years! Hmmm… I think it might be time to open up a driving range! 

Have you ever thought about opening up a driving range for passive income? Would it be worth it for you to try in your area, or is land too expensive?