How to generate these famous multiple sources of income?
Question: There are always these advices that to get financially independent you should set up multiple sources of income that create money on their own, with only minimal intervention from your side.
The people who give these advices are always saying you've got to try out a lot and yada, yada they now make 1000s of dollars per months with these things. But they're not very clear on what actually really brings in the money?
Or with which money you should survive during the time where you're figuring out your grand scheme of multiple sources of income ...
So, does anyone have real suggestions and examples for creating additional sources of income? Online and offline. And I'm not expecting high value income right now, it would already be cool to see a steady $10-$20 income stream being viable. Thanks a lot.
Answer:
There is no magic investment out there which is going to provide you with lots of income with little work. Most reputable financial advisors will tell you there are only 3 basic passive investments that most rational people use:
1. Bank accounts and Money Market accounts.
(These usually barely keep up with inflation.)
2. Bonds and Bond Funds
(These currently don't yield much better.)
3. Diversified Stocks
(These Average 10% a year but have large swings in price)
Most other investments you hear about are usually of questionable worth. You can make money in Real Estate as a landlord if you are willing to put a lot of work into it. Most good financial advisors will not recommend passive real estate investments. (An exception is REIT's, but they are basically a type of stock)
ACtually what you should do is hire a good stock broker. Invest no less than $1000 and see where it goes. If you have more, go ahead and invest it.
How about real estate. If I can show you how to purchase non owner property w/zero down would that tickle your fancy? Around here you can get 4plexes that will break even or possilbly put a little cash in your pocket monthly. I hope this isn't spam-ish but Its my job to teach people about Real estate I'm a mortgage PRO! Email me at FinancialEvolution@comcast.net if you want to chat in person.
In case you don't know most companies are public and anybody can buy stocks. Some companies pay dividends each quarter. This means they make billions of dollars each quarter in profits and they reinvest most of the profits in the company to buy the competition or other companies or to increase production or reduce costs (For example, Nike buys Converse and Adidas buys Reebok) the rest of the profits are shared with the stockholders.
GM pays $0.25 each quarter for every share you have.
Therefore if you want to receive $25 per quarter all you have to do is buy 100 shares of GM
This dividend will keep going forever until you die. And after that your children will inherit the shares and they will still get dividends and the same for your grandchildren. As you may have guessed by now. Most families own shares of the companies for hundreds of years.
The dividend could be reduced or increased over time and the company can decide to stop paying dividends. If that is the case you just sell your stocks and buy another company that pays better dividends.
To get multiple sources of income all you need to do is buy shares in several companies.
If you use your dividends to buy more stocks in the same company each quarter you become very wealthy.
Let's keep the GM example, if you receive $25 each quarter you can use that money to buy an extra share (Currently it costs less than $25.00) and the next quarter you now have 101 shares and you receive $25.25 instead of $25.00 the next quarter you now have 102 shares and receive $25.50 and so on.
Of course, you cannot make a living with $25.00 each quarter but the point here is you are making more and more money each quarter and you did not have to work or do anything to get that money. All you did was buy 100 shares and that's it.
If you save every time you get your paycheck to buy stocks you can become very wealthy. (If you pick the right stocks)
Another way is to buy property and rent it. With the profits you buy another property and rent it and now you have multiple streams of income.
If you open a small businesses and hire 2 employees to run it. and you keep your job you now have multiple sources of income. If you get fired. You still have your small business and can survive until you get a new job. At first, the business does not generate profits and it's very hard to keep it opened because you have to take a part of your paycheck to open it. If the business is good and you run it well you may turn a profit and then you could make more money from your business than from your job. (This does not mean you should quit) it only means you are on the right track to become wealthy.
Insteas of quiting you just keep saving the profits until you can open a second business and then you now have three streams of income. Just like McDonald's they every day open more than 2 restaurants somewhere in the World and therefore every day they have more streams of income. They now have over 30,000 restaurants.
If you want your first stream of income of $25 a quarter drop me a line. After that, we can work on how to increase that stream to $50 a quarter and then $100 a quarter and so on. This is not as easy as it seems and requires a lot of discipline.
I can give you references to a couple of good online businesses that provide high quality products and the ability to expand your business and develop passive income. Please write me: wasdadd@yahoo.com
More Questions & Answers...