Question: You mention receiving $200k of passive income a year, but your chart shows half of that coming from real estate holdings, and reading between the lines it appears that you hold mortgages against those holdings. Then you conclude that $200k/yr of passive income should be enough to live comfortably anywhere in the world. So are you subtracting your real estate expenses (taxes, insurance, mortgage payments, maintenance, remote property management company fees, etc.) when you report your passive income from those properties? Really I think it’s the net (after taxes and everything) that tells us what is left over to “spend” on living, right? When I set up my spreadsheet to retire early at age 47, I calculated the after-tax income I would need to live. Then I compared that to my income streams (estimating tax on the taxable income streams) to measure the surplus/shortfall. Also some good advice from GoCurryCracker: If you can minimize your taxes so you’re in the 15% tax bracket, you can possibly receive tax-free long term capital gains. I agree with your philosophy that time is more important than money as we age. I am not sure I agree with a philosophy that is fixated on needing such a large income, and would rather minimize taxes if it’s all the same on the happiness meter. Furthermore, having 20 plus income sources in the name of diversification adds stress and requires more management (TIME!). I think this is fine for those of us while young, as we have the energy to work hard. But as time becomes more important, the extra headache of managing, planning, and buying/selling our assets becomes a resented hindrance on par with the resentment we felt when working for an employer and fighting traffic each day to go to a job we hated. Every thing we own in actuality owns us, by virtue of its demands on our time and affections, and that includes investments. It also includes our home, and is a good reason for downsizing. As long as we have food on our table, a roof over our heads, and clothes on our bodies, what more do we need? I think we need to consider freeing ourselves from the weight of the chains of managing too many ventures. Personally, I plan on investing in no more than 5 simultaneous ventures ever, with the exception of some IRAs that I just plan to let sit for the next 20 years (and therefore no thought or anxiety required).
As an struggling young Engineer (back in the Carter era) I bought anything I could renovate then rent to justify paying the 18% interest. I never took vacations but worked on my properties all in the pursuit of passive income. I drove junk for many years & many months I just got by on credit cards. My friends & colleagues were amused by my ‘stupidity’ but most are still working to make enough for retirement.
Viral marketing is a customer-focused approach, so the first step is to identify the target demographic for a product and what they value the most in products, requiring marketers to research and analyze demographic data. During the Blair Witch campaign, the filmmakers and main marketing agents for the movie were accomplished film students. They examined what made horror movies compelling for the demographic of teens to young adults they were targeting, as well as explored how that demographic shared information. They used this information to focus on their product's mystery, and they concentrated their early efforts on the Internet where they knew they would have the best chance of reaching a younger audience. (See also Youth Marketing)
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.
Quick story: Remember that $1.18 I found in the couch? Even when that increased to $30 to $50 a day, it still wasn’t enough to live on. So I looked for other options. In August 2008, after people started to know who I was and how I could help them pass the LEED certification exam through my blog, I wrote an ebook. It included all the information I knew about passing this exam, and I sold it on my blog for $19.95.

One of the simplest ways to enjoy passive income streams is to buy stock in healthy and growing companies that pay dividends. Better still, look for dividends that have been increased regularly at a good clip (many companies often hike their payouts annually) and that have room for further growth, as evidenced by a dividend payout ratio of around 70% or less. The payout ratio is the amount of the annual dividend divided by the trailing 12 months' earnings per share. It reflects the portion of earnings being paid out in dividends. The lower the ratio, the more room for growth. A ratio above 100% means the company is paying out more than it earns, which isn't too sustainable. Here are some examples of stocks you might consider and research further:
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.
When imparting your brand message, addressing your audience directly by using the second-person term “you” ensures a personal touch. By saying “You are more beautiful than you think,” Dove could connect to the audience and show that it cares for each of them. The impact of the campaign was that while buying Dove’s products, people thought they are supporting a social cause.
Now that we have the model built, we can play with the variables to see what effect they have. In the spreadsheet above, go to cell B11, and change the Conversion rate for invites (conv%) to 5%. This will make the Viral Coefficient less than 1. Now look at what that did to your population growth. Instead of continuing to grow, it grows to 20 people, and then stops.
Do you have any items you don’t use all the time that others would like to borrow? Useful items like a truck, trailer, trampoline, kayak, or even your own yard could earn you passive income as rental items. This also includes renting out spare rooms in your house with the help of websites like Airbnb. Hop on your favorite social media site, upload pictures of your items, set a price, and tell the world they’re ready for rent.

A short study of this web site reveals that a hugely important factor for success in startup companies is finding ways to acquire customers at a low cost. In the Business Models section, we looked at the perfect business model: Viral customer acquisition with good monetization. However viral growth turns out to be an elusive goal, and only a very small number of companies actually achieve true viral growth.


Hi Sam! I loved your sentence, “There’s so much information in my head that I need to write it down or else I might explode.” That’s exactly how I feel! I never thought of myself as a writer, and especially not a blogger, but recently I’ve started dabbling in it and it feels so nice to get everything out! I’m dedicated to helping others succeed with personal finances, and there are plenty of “how-to” sites, but it’s important to get people thinking and motivated to prepare, plan, and save!

But nowadays, there is so much opportunity if you search for brand-suitable domains and also keyword-rich or otherwise popular names on the myriad of new domain name extensions like .io, .at etc.  And I should know, because I’ve paid several domain squatters a king’s ransom to purchase these sorts of domain names in the last few years!  Continue reading >
Basically, people looking to borrow money will make a listing on the site. Those borrowers are then placed into a category and given a “rating” based on their credit history and rate. You, as an investor, will contribute money to these loans and then be paid back at the predetermined rate of interest. Invest and see those monthly interest payments deposited into your account.

When you write a blog post on your website, that article immediately goes out to your followers. But the content also remains on the website for others to find via search engines or social media. Each time somebody reads your content, there’s the potential to serve them an ad, product for purchase, or affiliate link (many links in this post are affiliate links). Each set of eyeballs that read your content carry the potential for passive income.
This can be a little easier said than done, but if you have a large social media following, you can definitely earn money promoting a product or advertising for a company. You can even combine this with different marketing campaigns if you are an influencer and have your own blog (advertisement + affiliate income). This is how many bloggers make money! Again, it is not 100% passive but once set up correctly and then scaled, can be surprisingly lucrative.
But first, let’s about talk passive income! What is passive income? There are many different definitions out there, but mine goes something like this: Passive income is all about building online businesses that can work for you, that allow you to generate income, and grow and scale, without a real-time presence. In other words, you don’t trade time for money. You build something up front that can continue to work for you over time.
Non-fiction e-books that educate your potential audience on specific topics like finance, online marketing, and business are going to make you more money than fiction books. Of course, there are always exceptions and you could write the next Harry Potter book, but if you want to create some residual income opportunities quickly, I would suggest you go for what sells first!
I've got a $185,000 CD generating 3% interest coming due. Although the return is low, it's guaranteed. The CD gave me the confidence to invest more aggressively in risk over the years. My online interest income has come down since I aggressively deployed some capital at the beginning of the year and again during the February market correction. You'll see these figures in my quarterly investment-income update.
The five forces model of analysis was developed by Michael Porter to analyze the competitive environment in which a product or company works. Description: There are five forces that act on any product/ brand/ company: 1. The threat of entry: competitors can enter from any industry, channel, function, form or marketing activity. How best can the company take care of the threat of new entrants? 2
It was easier recouping the lost $60,000 in rental-property income than I expected. For so long, my primary mindset for passive income was rental income. Having $815,000 less mortgage debt but still generating roughly the same amount of passive income with a much larger cash balance feels great. Further, my passive-income portfolio got even more passive, which is good as a stay-at-home dad to a newborn.
I have six rental units which are a good source of passive income. I don’t use a property manager because you are right…they take about 10% of your rent. There are really only 2 things that tenants call about: 1. A plumbing issue 2. Heat/Air problems. Just find a plumber and heat/air guy you can trust. I travel a lot for my primary job. When a call comes in from a tenant, I can call the repair guy in just as easy as a property manager.

Speaking of credit cards, if you don't use them to rack up debt, you can instead use them to generate income streams for you -- via their cash-back or rewards programs. Some cards offer flat-rate cash-back percentages up to about 2%. Others target certain kinds of spending or certain retailers. If you spend a lot at Amazon.com, for example, you can get a card that rewards you with 5% cash back there -- which can really add up. (It's not hard to spend $250 per month at Amazon, which is $3,000 per year -- enough to earn $150 back.)

Part of providing value is building trust. Don’t link to things that aren’t of good quality or people won’t trust your recommendations. The other part of making an audience is consistency. It matters less how often you post than how consistently. If you only have time to do one post a month, that post should come out on the same date and time each month.


I just started out with Affiliate Marketing (idea # 8) and it is not as easy as people make out to be. For me, the hardest part so far, is learning Search Engine Optimization (SEO) and driving traffic to my website. I’m only 3 months into it, but I am confident that the site will begin to generate some incom., I have to give it 6-9 months, so we’ll see.

Investing your money is one of the oldest passive income strategies on the books. Investing in stocks (or funds of stocks) means that you are becoming a (very) partial owner in the company whose stock you own. When you purchase a stock, your expectation is that the value of the stock will either increase or decrease, and your goal is to buy low and sell high. (This is what everyone is shouting about on the floor of the NYSE in movies about the world of high finance).
As an struggling young Engineer (back in the Carter era) I bought anything I could renovate then rent to justify paying the 18% interest. I never took vacations but worked on my properties all in the pursuit of passive income. I drove junk for many years & many months I just got by on credit cards. My friends & colleagues were amused by my ‘stupidity’ but most are still working to make enough for retirement.
If you have a spare bedroom, you can find a roommate or list the space on AirBnB for travelers. Having a roommate is the more passive of the two, as being an Airbnb host will require more work in the form of turning over the room between stays. This is a super painless way to earn $500 to $1,000 a month without much effort – you may even be able to cover your mortgage payment with this extra income!
Where blogging requires frequent, less-lengthy content, a book can be something you work on for months at a time and publish it for sale. And it can become more than just passive income. In fact, UK author Mark Dawson makes close to half a million dollars a year from self-publishing his books. On a smaller scale, Joseph Hogue makes about $2,000 per month writing and self-publishing financial books. If these guys can do it, anyone can.
The growth of social networks significantly contributed to the effectiveness of viral marketing.[30] As of 2009, two thirds of the world's Internet population visits a social networking service or blog site at least every week.[31] Facebook alone has over 1 billion active users.[32] In 2009, time spent visiting social media sites began to exceed time spent emailing.[33] A 2010 study found that 52% of people who view news online forward it on through social networks, email, or posts.[34]
×