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Originally Posted by Saidin  Passive income is never truly passive. You have to at least provide some value to others in order to make some money from them. This means you have to do something to create that value.
The most passive form of income is probably achieved by creating something (of value) once that can be recreated easily. Good examples are eBooks, blog posts and articles, music, etc. That's how some artists get rich: they create something once and sell it over and over again.
Look at what kind of things you can create once. After you've done that, you can extract value from it. |
Well this is sort of where I got confused. How do you mean create something once? Music, blog posts, etc. are certainly not one-shot deals! (Of course, no business in the world is.) I'm not sure I understand what you mean by create and recreate, and selling it over and over.
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Originally Posted by Lucas Passive income is usually the result of a system, and there is no system on Earth that is truly 100% passive. Think of passive income as an automated assembly line that you first had to take the time and effort to build, then you have to take an exponentially smaller amount time to maintain and ensure that it is running, and all the parts of it are operating in harmony and unison. That can be a couple hours a week, or month, depending, but you are always going to have to watch your creation and fix any parts that break down. It's still a much smaller and better use of your time than trading time for income.  |
Certainly, as long as the payoff per labor and whatever other utility gained matches up. To use your analogy, I'm finding it difficult to tell what truly is an assembly line these days, however, versus what's just several chunks of metal in an industrial neighborhood.
I'm currently getting all my income from my job, so I'm looking to change that without ruining my productivity, fitness, or sleep.
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Originally Posted by ella What will work best for you depends on your interests. What are you interested in? Real estate, shares and derivates, internet, business?
Keep in mind that most passive income streams will take above average sweat equity (investments of time, good information and some capital) to get it started. |
At the moment, the only investing I do is in index mutual funds (it seems fewer and fewer people have the skill to beat the market in things like equities or derivatives long-term given today's market efficiency), and there I'm not an income investor. I was thinking of something internet-related, preferably that I could automate as much as possible. I've read of people making money online having come up with some seriously random ideas, but I don't know where to learn how to create marketable, cost-efficient ideas.