No mucking around now – let’s start making passive income immediately.
There is so much talk and theorising about how to achieve passive income, when in fact, all we need to do is take action.
Do it now – talk about it later.
It’s also important that we are crystal clear on what passive income is and is not. I’ve written about this before here.
Hint – passive income is NOT a side hustle that will run you ragged, nor is it going into debt for 10 houses to rent out and subsequently send yourself stark raving mad trying to self-manage them.
No, passive income is just that …. passive.
How To Start
Step 1. Save up $500 in a month (do whatever it takes).
Step 2. Choose the passive income product that you understand and can easily access. (see suggested list below for examples of very easy ones)
Step 3. Buy into your chosen passive income asset.
Step 4. Switch on any automatic income reinvestment plans (if available) and (optional only – you don’t have to do this step)
Step 5. Return to Step 1 and repeat.
Passive Income Assets To Start With
Here is a list of very easy, yet good quality, passive income assets to start with.
Dividends
Choose a low fee, index based, monthly-paying dividend ETF or dividend fund.
Here is an article I wrote previously about dividends for passive income.
Corporate Bonds
Choose a low fee, monthly-paying corporate bond ETF or fund.
Here is a more detailed article I wrote previously about corporate bonds for passive income.
Real Estate Investment Trusts
Choose a low fee, monthly-paying dividend REIT ETF or REIT fund.
Here is an article I’ve previously written, all about REITs for passive income.
Cover Call Exchange Traded Funds
Choose a low fee, index based, monthly-paying covered call ETF.
Here is an article I wrote previously that explains covered call ETFs for passive income.
Making Passive Income Immediately
Following the 5 steps at the beginning of this article will mean that every single month, the following will occur:-
- You’ll get monthly dividends and distributions paid directly to you
- You’ll see your portfolio grow
- Each month, your income (distributions/dividends) from your assets will get bigger and bigger
- Each month, the amount of assets you own will grow and grow
Then one day, something magical happens – your assets will earn more in the month than you are contributing. That is a magical moment.
Then down the track, your assets will earn more in the month than you will.
Then, you’ll be financially independent with a private income.
Very. Nice.
One more thing – let time do it’s job. Time will grow these assets if you just repeat the same 5 steps above.
Just stay the course, don’t over think it and get on with enjoying your life.
So, don’t tell anyone – just take action and start making passive income immediately.
Cheers
