The reason I'm writing this post is because I believe that passive income is misunderstood. Most people work their whole lives in the hope of accumulating enough assets to generate income for them. We have been told that we should invest or max our 401k. And magically this would mean that it will generate enough passive income when we reach 65 years old.
But what is passive income?
And why do we need to wait until we are 65 years old to enjoy it?
I believe that everyone can earn passive income no matter what age they are.
I believe that everyone can earn passive income no matter what age they are. Of course, there is the traditional "asset" backed passive income, but especially with the internet and its 3.5 billion users (and growing), there is now more opportunities than ever.
My goal writing this is to go through all the most popular forms of passive income. In the hope you can find ideas or ways you never thought of before you could generate passive income. Everyone have talents and especially with technology, you can use those talents to sell to whole world. As Adam Smith said, the bigger the market, the more opportunities to specialize exists.
My current passive income
Here's a breakdown of my current passive income. My goal is to reach yearly ~100k$ in passive income.
|Monthly Passive Income|
|Emergency fund interest||$333.33|
Although this total is close to reaching my goal, I need to keep in mind that I still need to service my debt (mortgage), so I'm closer to ~5000k$/month.
Since the real estate investment are leveraged, a big portion of my passive income are real-estate related.
I currently have roommates who are helping me pay for the mortgage. Like I written before, roommates are the best type of passive income.
I also do Airbnb in a spare room. Summer is extremely busy since I have the chance to live in a very touristic city.
Emergency fund interest:
I keep a lot of cash in my emergency fund. Some might say I leave too much cash, but I'm confortable waiting for an opportunity to invest it (either real estate or stock market).
Here I keep a conservative estimates if I was holding bonds.
My blog is very recent, and the traffic is quite light. I'm working on increasing it.
This is a vestige of a previous venture I worked really hard on. It is still running and working, but I'm not trying to improve it.