howman said:
I never said anything about not working hard nor did I say I was looking for a "get rich quick" scheme. I think some of you are reading this wrong and/or have a preconceived notion about the phrase "passive income".
But the answers you got here are typical. I am shocked at music forums where a person asks how to play jazz or how to become a full time employed musician, and the first answers are always "there are no shortcuts." Well, HELLO, the orignial poster never said they were looking for a shortcut. In fact, in my opinion, if a person is asking to increase their income, learn jazz, become a full time musician, they already know that there will at least be a period of a few years where they will be working there rear off more than the typical person.
Last year, the boss/owner/president of the company I was working for hired a business coach from a company named Action International. I do not work for them and this is not spam or an ad, it is just the facts. Anyway, his coach was coaching him on how to remain the owner of that company, but to reduce his time working FOR the company, so that he could either pursue his other interests, or...start another company. The book Rich Dad, Poor Dad talks about this.
Most of my friends who are "self employed" do not own a business that they could sell or that they could "manage" with minimum input.
One of the music stores that I go to, and the cleaners that I do my shirts at, both have the owner of the company working for that company. Basically, they own the company they work for. Even though they have employees, you could argue that they own their jobs, not their businesses. However, the laundry guy and the music store guy have businesses that they could sell. So they are working on increasing the value of their business. If the business owns the land and the building it is using, even better.
I worked for a business where the land and the building was owned by the three guys who owned the company, and the business paid those guys rent, and after 15 years, those guys owned that land and that business. They slowly sold out and where set for life, before they where 60.
The Brusters near me is on a large plot of land between two shopping centers. The guy who owns it bought it for the future land value, and simply runs the ice cream store to pay for the land. And he owns the franschise for that area, so there is value in that. He plans to sell the land with an agreement that he will build a Brusters as a part of any future development.
Anyway...it is a crime that in america a young person who is looking for a way to create wealth that in turn creates a passive income is called lazy. It is a crime that our education system does not include business ownership as a part of a possible future for young people. Most kids who graduate from high school say that they want to do something that involves being an employee of some comany they do not have control of.
And "passive income" does not mean lazy, and it does not mean investment or interest from a large sum of cash.
Last. All my friends who are into real estate and small business ventures also have jobs. And they are looking for ANYTHING that will pay for its self. Read that again. Pay for itself. If you can buy an apartment building. Even a small four unit building. And the income from that venture will simply pay for itself, and your loan is for 15 years...BINGO...in 15 years you have income from that property, along with the increased value in that property.
Really last. Don't be the guy who mows the lawns, be the guy who goes door to door signing up customers, and hiring more guys who simply do the daily mowing. And then keep a sharp eye out for the guy who is going to take your place, so you can now leverage those existing customers you already have a relationship with to now be washing their cars. Then you again replace yourself and leverage those customers and provide home improvements.
These are just examples. And you may know all this.
One of the radio stations in my city has a daily talkshow by a guy named Dave Ramsey that is a real eye opener. His system is for being debt free, which in combination with investments that pay for themselves would create an early retirement.