What is passive income? I like to tell people that it is money that you get paid while you eat, sleep, and shit. But it is much more than that. It is the ability to have freedom. To win your time back. To live a life that you create for yourself instead of being forced to do things you don’t like to do.
But ever since I was younger I was robbed of that idea.
All my friends, family members, and teachers all told me that there was only one path to success. Go to school get good grades, get a job, then work until you die. The worst part was I believed them. I believed that the only way to becoming successful was trading my time for money.
But its not..
If you want to live the life that you want.. you need to find a way to separate yourself from the money equation.
Because “If you don’t find a way to make money while you sleep, you will work until you die.” – Warren Buffet
So learn about passive income today and find out the 7 ways to make it in the video below. Alternatively, you can also learn how to invest 100$ and turn that into over $1000 a day.
Watch The Video On How To Make Passive Income:
Proven Way #1 BECOMING AN AUTHOR
Becoming an author is one of the best ways to create passive income. Because once you create it, the book will exist forever.
Before I die, I knew I wanted to create a book. But I was afraid. I didn’t think I had it in me, and I was intimidated by the workload necessary.
At the end of the day, it was pretty simple. All I did was I made an outline of my entire life so far: the lessons I learned, the failures I overcame, and the important memories that I forgot I even had.
The entire outline took 24 hours.
After having the outline, the book only took me another 24 hours to write thanks to the Parkinson’s law and the 80/ 20 rule.
From there, I uploaded it for free on kindle and Createspace, named it The Lazy Man’s Guide to Living the Good Life, and within 48 hours I had an ebook and a paperback book that I could now sell forever.
Proven Way #2 AFFILIATE MARKETING
Affiliate marketing is rather simple. It’s when you recommend a product and when some other person buys it, you end up getting a commission.
If you check out thisiswhyimbroke.com, you will see a bunch of weird products on the website. Whenever someone visits this website and clicks on most of the links, they end up on Amazon.com.
And if the person ends up buying anything on Amazon within the next 24 hours, the affiliate would get up to 10% simply by being the person that referred the customer to Amazon.
Related Posts About Affiliate Marketing:
Proven Way #3 DROP SHIPPING
Once you make a sale, you then go to a supplier and then buy the product. You then have the supplier ship the product directly to your customer.
Here are some helpful blog posts regarding drop shipping:
- How I went from zero to $1.5 million in 13 months
- How to create a six figure shopify store
- How to Make $1000 a Day While Traveling the World
Proven Way #4 CREATING A YOUTUBE CHANNEL
This one is my personal favorite. Many YouTubers make a living on the ads that play before a video. While that is one way to make money with YouTube, the better way is actually monetizing that traffic.
I do that by sending the YouTube traffic to this blog where I can sell them things like my book, recommend them to products that I enjoy, or help people that need extra help with my online courses.
The reason why this is amazing is because once you create the video, it will then exist forever – constantly being your slave and working for you while you are sleeping.
Here are some helpful blog posts regarding the passive income that comes with a YouTube channel and blogging:
- How to Create Passive Income with No Money
- How I Travel the World and Get Paid
- How to Start a Blog and Make Money
Proven Way #5 SELL YOUR EXPERTISE
Everyone has a skill that someone else would pay for. For example, there were around 100,000 people who wanted to learn how to jump higher from a man named Jacob Hiller. They wanted to learn so bad that they were willing to give him $67 just so that they can get an eBook that had the super secret exercises that allowed Jacob to increase his vertical leap.
Do you have anything that you are good at that people come to you for help? Usually it is hard to pinpoint the exact skill since to you it may seem normal and easy. But to others, they are willing to give you money to learn the skill that you know so well.
Proven Way #6 INVEST IN MULTI-FAMILY HOME REAL ESTATE
For those who don’t know Grant Cardone, he has a $350 million multi family home real estate empire.
Why does Grant Cardone (best-selling author and multimillionaire) always puts his money in multi family home real estate?
When every single industry out there is constantly changing, real estate is the one thing that has existed the longest. It is one of the best ways to hold your money because of the fact that it can provide 10% returns every single year without any work – making it one of the best sources of passive income.
For example, say you made $1 million. You didn’t blow it dumb stuff like bottle service every weekend, fancy cars or that nice watch you always wanted. Instead, you saved it up and put it in a multi family home real estate investment.
Even if that investment just returned 10% of the money that you invested, that would be enough to pay you around $100,000 a year for the rest of your life..
Would you be able to live off of $100, 000 a year? Not to shabby huh?
Proven Way #7 INVEST IN INDEX FUNDS
“By periodically investing in index funds, the know nothing investor can outperform most investment professionals” – Warren Buffet.
You’re probably wondering what are index funds. Index Funds are type of mutual fund that measures the S&P 500 (basically the top 500 stocks in America) and usually if you bet on index funds and in the S&P 500, what you’re actually betting on is the fact that America will constantly grow.
Index funds are great because over a long period of time (15-20 years), they can return up to 7-10% in your investment. Meaning, if you put in $1 million, you get $70,000-$100,000 a year. This is perfect for people who aren’t as familiar with real estate since this method is all about setting it up with your bank and forgetting it – allowing it to grow and build with time.
What Warren Buffett recommends with index funds is Dollar Cost Averaging.
What you do is every single month, without even looking at your paycheck, you automatically set it up and it automatically pulls money from your paycheck. It then invests it for you so you never have to see your money. And if you don’t see that money in your bank account, you won’t be tempted to spend it.
The company I use to do my index fund investing is betterment.com. Make sure you check them out if you want to learn more about index funds.
Now the biggest goal with whatever you have going on is to first create a business to help with that cashflow, and to use that extra cashflow you don’t need in other passive sources like the ones mentioned above.
And for more tips on how to make money online make sure you do the following: