How do I generate passive income

[Staceyy]

You could buy rental income and write books and collect the royalties. Both are hard work until they become passive.

[kork13]

passive income... that's basically having a huge pot of money invested and living off of the interest, correct?

So it would seem that the simplest way by far would be to trick one of the nation's major universities into signing over their endowment to you, then let their millions provide you a healthy sum to pay for your pool-sitting, beer-sipping pleasure.

No complicated math necessary

[BCHGRL]

Become a trophy wife, trophy husband, or kept lover. Or become Paris Hilton. There ya go! Party for a living and let people pay you to do it.

[mrpaseo]

Originally Posted by jeffrey

I get a lot of weird questions. Believe it or not, some worse than this one and what I've found is that if someone ends up emailing me directly, they are usually serious about the question. They really have nothing to gain when they email other than have their questioned answered or ignored. Unfortunately, I believe that the person was serious, although having a huge misunderstanding of what passive income entails.

He wants the benefits of passive income, but thinks that he can get them without any real work not understanding that in order to create the passive income, it takes a lot of work to earn the money or create the passive income stream. This is an illusion that a lot of people have, just usually not quite to the extent of this guy.

I use the scooter principle to explain passive income:

passive income is like riding a scooter, first you must work really, really hard at propelling yourself forward, then you retire the effort and allow the momentum of your hard work.....work for you.
You must work hard and save/invest your earnings, and then you retire your efforts, and let your money work for you.


Ray

[Gailete]

I have done things that I call passive savings. Once I sign up for automatic payments for some things or handling accounts online I started saving about $25 a year each for different things. I'm always looking at ways to chop off spending without having to think about it ever again but I guess that isn't passive income. I've never heard of anyone through the use of passive income getting to sit by the pool and drink beer all day. Usually anyone who can do that inherited money or is being a leech on someone else.

By the way for those who think that once you get to 65 and can have Medicare you won't have medical expenses, think again. You have to pay currently about $90+ a month for Medicare and then anywhere for $300+ on up per month for a supplementary insurance to cover what Medicare doesn't and then you have to pay $25-100+ a month for your drug supplement. For me on disability it runs about $500 a month our of my disability check. Then the SS cost of living increase usually equals the Medicare increase so you aren't any further ahead and many are actually sliding back (have less money to live on each year as Mediare/supplements take the entire raise plus).

Gail

[QueenOphelia]

nevermind

[Like2Plan]

Originally Posted by QueenOphelia

Gee, what happened? You posted this on 6/21:




Seems like you are turning into your son. Maybe you need meds as well.

QueenOphelia,
I think the administrator posted this question on behalf of someone who sent him an email. That is why there are different situations posted under the Questions id.

[KellyJef]

Originally Posted by Ima saver

I could probably live on the interest I earn in savings, if I lived in a modest paid for house and only owned one car! I am making about $65 a day which is $23,725.

If it's not too pesonal, can I ask what kind of savings you have to accumulate to generate $23,7525 in interest?

[kork13]

$800k in a simple online savings account getting 3% would earn $24.3k per year. $450k getting 5% will pull $23k per year as well.

Really, you CAN generate a 'passive income' pretty easily if you have the assets behind you. that's just the pivotal point.... having the assets behind you. Heck, with $2Mil, you can easily get $80k-$100k/yr just from interest.