Having an income stream that puts money in your pockets whether you work, drive in your car, chill at the beach or take a nap just feels amazing. This is what abundance feels like. Comming home and seeing that your expenses are low and your income comes into your bank account without you lifting a finger is a very nice thing.
Now I am not a financial expert by any means. I have just a big interest in finance since I was very young. Have read a couple books on that topic. And I am starting out my own journey to financial abundace at the moment.
But the idea how passive income (as a synonym to financial abundace) makes you feel great came today to me after I was checking out my bank-account. I bought stocks from a company 2 years back. That company pays really nice dividends on their stocks. I didn’t even know that their annual general meeting is this month.
However today I checked my bank account. While I didn’t really noticed the increase at first I was scrolling through my income statement and saw that the company just payed out some cash.
It is not a million dollars or anything. But it is a nice feeling non or less. I bought this stock a couple years back as one of my first investments and didn’t really touch it ever sice. The investment was moderate. Maybe a little over 1000€. But it is going well. I collect some dividens and in a couple years I will sell the stock with a nice price increase.
I will write a little bit more about money and business here in the future. But in the meantime I highly encourage you to do your own research about passive income and ways to invest your money in a smart way.
Ways to make passive income:
1. Stocks and Bonds
2. Investing in real estate
Those are two ways to make good passive income. The down-side of those is that you usually already have to have some money that you can invest. Lets say you worked hard in a job for 10 years. Safed a solid amout of money. Now you can look for stocks and properties to buy. The good thing about those is that once you have everything set up (bought a property and have solid tenants or bought quality stocks) you barely have any work with it.
3. Selling your own product
4. Selling someone else product
Here you have to do some work first. You have to buy something that you can sell. You have to set up a website to market the products of other people. Or, you have to create a product (for example an ebook or a video course). You have to get the word out too. It requires some up front work. Just as in stocks and real estate you have to make money first to invest it. Here you don’t really have to have money in the beginning. Besides some small amount for setting up a website maybe. You put the work in first. And collect the dividends later.
As you see: No money is really entirely passive. Nothing in life comes for free. You have to do the work first. You will usually have some moderate time investment as well. For example managing your stocks once a year to see if the ones you bought are still the smartest choice. Managing the website you have. And so on. However most of it is pretty simple and you can either outsource it, or do it in a couple hours yourself.
My suggestion is to increase your income. Minimise your spendings. And then invest the difference in things that make money for you (Stocks, Real Estate, Businesses). This is how you escape the rat race and will be financially free.
In the end you can let me know.. Are you interested in money and finances? Do you currently invest your money? And what types of investments do you have? Let me know in the comments! And see you under the next post.