HOW CREATE PASSIVE INCOME?

Passive income is not always easy to develop ínfima to you might lose money trying to create it. So in this post I want to show you how I currently make passive income and how you can start creating passive income for yourself.

Keep in mind it is not easy to create passive income with that in mind, what ever trade you want to go into, study first by reading books. This will reduce the risk in creating passive income.

STOCKS

Stocks can be one of the most passive investments, depending on how you invest. I prefer investing for the long run because slow and steady wins the race. So one of the main factors I like to see when I invest in stocks is dividends.

Dividends are company earnings that are annually distributed amongst shareholders.

Also in some cases dividends is handed out monthly, so make sure to really study your stocks by using www.sec.gov. From the SEC website you can search up company records, all you need to do is go to the search tab and type in “EDGAR SEARCH,” once land on that page type in the company’s name or ticker symbol.

HIGH YIELD SAVINGS ACCOUNT

High Yield accounts are easier to find but to make a significant amount from interest, you have to have over $10,000 in the account in my opinion. These account are made to give you higher returns compared to a regular savings account or bank account.

Remember this is less risky, when it comes to making passive income, so the returns are not really as big as stocks. What I suggest is to create an account just so you can have money ready to use for convenience but still have money working for you by paying you interest.

ROYALTY FEES

There are plenty of places to collect royalty fees, just to give you an example for “The Way I Save” one of the sites that the blog collects a royalty fee from is merchandise. Teespring is a good site to create graphics that can go on any product and if someone purchases your product you collect a royalty fee.

Now each product can give you more or less money the profit margin varies, but it’s fun and simple to set up. If you want to see an example on how it looks click over to the products page of “The Way I Save” located on the menu tab.

Goals For your Money

Many people create goals they want to accomplish at the beginning of each year. Some people accomplish these goals, others forget about the goals that they have set for themselves. The most successful people break down their goals into realistic task and give a time frame for the goal to be completed. If your new year resolution was to make more money this year, then you clicked on the best post for you.

In this post we’re going to break down your goal into making more money into realistic task but first lets be clear about the time frame. We want to complete this goal before the next year, so lets make this a 10 month goal.

TASK NUMBER 1

What are you passionate about and why? When you figure out what you are passionate about you will be willing to work more hours during the day. When you figure out why you are passionate about something it prevents you from getting burnt out or tired, and if you do get tired then its not a big enough “why.”

You don’t have to think too hard to realize what your passionate about because chances are you want to change peoples lives. So all you have to do is figure out what part of peoples lives you want to change. For example, I want to change the way people operate their personal finances so they can have financial freedom. The reason why I want to do this is because 80% of America is in debt and 55% of that debt is in credit cards.

So now that you know you want to impact peoples lives, and what part of their lives you want to impact, figure out how your going to impact them. Is it going to be through books, seminars, music, or a podcast.

TASK NUMBER 2

Supercharge your learning, when you find out what service your going to do, you need to learn more about the service (do not sell yourself short when it comes to the price of your service and do not overprice it.) You need to have a strategic method of learning too, so when you find the service you want to provide ask questions like how? Where? Why? and Who? Then learn the answers to each question. Start with the basics learn how to find the right people to partner with to eventually form a business, you need marketing, accounting, and specialist in the field.

TASK NUMBER 3

What ever money you have now, chances are your going to need more. So find things to flip, sell, or invest in that will give you enough cushion to start your business. I didn’t say it will be easy, but it is doable. Simple ideas to flip would be cars, shoes, or furniture.

I hope you enjoyed reading this post and I also hope it inspired you.

Thank you for reading

The Way I Save

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What’s an IPO?

IPOs are always being listed on the exchange and you can make a considerable amount of money from buying and selling IPOs at the right time, but what are they specifically. Well in this post I am going to break down this acronym, and tell you whether or not you should invest in an IPO.

I – INITIAL

Well let’s begin with the first letter of IPO, which stands for initial. When a private company is planning to grow rather quickly, they look for funding in various places. Take “Publix” for an example, they offer their own employees an opportunity to buy a share of a company. With that money reinvested in Publix the company is able to acquire more assets to grow in profitability.

P – PUBLIC

The “P” in IPO stands for public. After massive expansion, a company like Publix is able to go public with their stock. This means a non-employee of Publix can become a shareholder in the company now.

O – OFFERING

I stands for Initial, P was for Public, and O is for Offering. As an Initial Public Offering, a private company is able to become a public company. The benefits of this transitions helps the company go from a couple hundred thousand in funding, to millions or even billions in funding.

BUT…

When a company is newly listed the information of its business dealings are very slim to none. Which means many investors do not know much about the company’s Assets, Liability, and the companies performance record (profits).

Even with knowing very little about a newly listed company, investors still gamble and invest in IPO’s. Which result in these investors loosing everything.

So taken it from Benjamin Graham when he states that the more you know the better with stocks; this is my translation of what Ben teaches in his book “The Intelligent Investor.”

Thanks For Reading

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HOW TO PICK A STOCK

If your like me a few years ago, you probably want to invest into the stock market but you don’t even know what to buy. Well, you clicked on the right post, in this post your going to learn how to pick the best stocks and be able to determine what a good stock looks like.

Okay for starters, there are plenty of ways to make money in the stock market, But the best way is by holding on to a stock for five or fifteen years. There are two reasons why this is the best method.

  1. You can build capital
  2. You can receive dividends

CAPITAL

Now to build capital you have to do some research before you pick a stock. You cant just pick a stock based on what you think, or what some else thinks (that is a good way to lose your shirt.)

There is a cool site that helps you gather information about a stock and its called “SEC.GOV.” This website was created by the “U.S Securities and Exchange Commission” to help the individual investor make informed decisions on a stock before investing. Every stock that is listed on the market has to give updated information on the companies balance sheet, income statement, and cashflow statement, plus any executive decision.

I personally use sec.gov every quarter, to get updated information on how my stocks are doing. I suggest you to do the same, because this is a good way to learn more about the company and where its headed financially. You deserve to know if the company is making money or losing money.

DIVIDENDS

Part of deciding whether a stock is good, is by seeing if the stock gives quarterly dividends and has been doing so for more than fives years. This is another piece of information that is provided at sec.gov.

At the bottom of the picture above it shows the dividends per share for this particular stock. It also shows you how much dividends was handed out by the company in 2019 after three months and 2018 after three months.

Dividends gets passed out each fiscal quarter, which is every three months. At the bottom left you can see the dividends given after nine months for 2019 and 2018. I showed you this picture just to give you an idea of what your looking for in a stock, when it comes to dividends.

Just to give you a heads up, the reason why you want to pick a stock that shows more than 5 years of dividend payments, is because the company decides whether or not to give its shareholders dividends.

Thank You for reading

I hope you enjoyed this post if you did let me know by leaving a comment.

WHATS A BOND

Most people will not buy a bond, but after learning what a bond is and what it can do for you, your going to want to purchase some as soon as possible. As a investor you always want to diversify your investments, any 401k manager or financial advisor will tell you that. That is part of the reason why ten percent of your 401k generally includes bonds.

GENERALLY

In general, a bond is issued when a entity (company or government) needs funding for advancement or backed expenses. Just like a certificate of deposit, with a bond you can only redeem your investment at a specific time. Bonds can be redeemable anywhere from 1-30 years. These type of investments are normally considered low risk in comparison to stocks. Typically the interest you gain from bonds are enough to protect you from inflation.

TYPES OF BONDS

Treasury Bonds – Are issued by the government.

Corporate Bonds – Are issued by corporations for profit.

Agency Bonds – Are issued by federal agencies.

Municipal Bonds – Are issued by cities, states, and countries.

The best bond to invest in, is debatable, but what I prefer is municipal bonds. The reason why I prefer municipal bond is because municipal bonds, are generally exempt from state income tax in the state where the bond is issued. Also municipal bonds are generally moderate risk but can be high, which means this type of bond will give you a pretty good return.

Thank You

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Be The Bank

www.trading-the-forex.netBanks happened to be one of the most profitable businesses, and not just because of the credit cards they offer. The way Banks our making their money is from interest. They get interest not just from common folks opening up credit cards, but other businesses as well. The way they make money from other businesses is through “Chip Readers.” Chip Readers can take up to 35% per transaction, other Chip Readers take a monthly fee. What I’m going to show you is how to be like the banks and rack up on interest. Ways you can rack up on interest is:10.jpg

  • Loaning out money through sites like Lending Club.
  • Loaning out money for real estate through sites like “Fundrise.”
  • Investing some money into other currencies through companies like Forex

Loaning money out can be very difficult at times, but through sites like Lending Club you are able to get back anywhere from 7% to 14% in interest on the money you invest into a individual. To make sure you are confident about the people you are loaning money to they provide you the credit score’s of the individuals who you think are a good candidate. This type of investing is called peer to peer lending, Lending Club is just an example there are other peer to peer lending companies available. With peer to peer lending there the minimum you can loan is $1000, the companies also take a fee of 2% or 3% of the interest made from investing.

The second way that I presented on how to gain interest is through “Fundrise” and Fundrise consist of a pool of investors investing into a property and receive an interest of approximately 5-12 percent considering how much risk you want to take. I am personally invested into this program and so far made more money from this account than my high yield savings account, but there is a fee which isn’t much so far they took only $0.44 out of my account. Then again I only have 1000 invested, but doing a little more research on Fundrise “The eDirect offerings — eREITs and eFunds — pay a 0.85% annual asset management fee. In addition, clients of the investment services and management system pay a 0.15% annual investment advisory fee, although this may be waived in certain circumstances.

Foreign Exchange

The foreign exchange market is arguably the largest market across the globe 

Written by: http://www.trading-the-forex.net

one of the greatest ways to invest and it’s because when are economy is plummeting another economy will be thriving. It is similar to when your researching a stock, you have to read about different economies to see when or if their currency will change for the better or worse. When I was dealing with Forex, I was able to get 10 percent back from my investment. There are always tricks and tip to use for Foreign Exchange such as tracking financial news daily, staying away from Forex bots, and using margin wisely. I can’t explain this massive investment all in this post so I’m making a separate post to let you in all the details, but until next time, Let me know if this post was helpful to you

!!THANK YOU!!

For visiting: http://www.thewayisave.blog

Passive Income

Passive income is earnings derived from a rental property, limited partnership or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). Portfolio income is considered passive income by some analysts, so dividends and Interest would therefore be considered passive.

quoted by: http://www.investopedia.com

I have read, listened, and saw plenty of CPA’s, Real Estate agents, and Financial Advisors talk about passive income; but their are only a few to do while in college with limited funds (money).

The first one is my favorite which is a High Yield Savings account. So instead of getting a penny $0.01 a month for every $1000 dollars, you have your getting $2 a month that’s a huge difference. The reason why this is my favorite type of passive income is because I am able to invest at a very low risk which means I am less likely to loose my investment.

The Secondary way to create passive income is through Real Estate Pool Investing which gives you over 5% back in interest. Which is pretty cool considering that your only getting 0.09% from your current savings account with your ordinary bank. I currently made $22 from letting my money sit. I’ve been using a popular and reliable platform called, Fundrise. What Fundrise does is raise money for a specific Real Estate Property that gives you back and average of %5 back on what ever you decide to put in. The minimum amount to get started is only $500 and it’s pretty easy to setup.

The last passive income is the stocks market. The reason why I put the stock market as a passive income is because there is a slight trick to making the stock market passive now of course your not going to make as much as active people in the stock market you can still make a significant amount from dividends. Dividends is “money” the company gives the stock holder for per share. Sometimes they give it quarterly or monthly, the best dividend stock out there right now from the time writing this post is “PSEC.”

There many other ways to create passive income. Even some businesses can even be passive. Writing is one of the most passive incomes created, think about the only work you do is to write the book, publish, and promote. This is why many pastors and entrepreneurs write books, it’s an investment that accrues interest over time by promoting yourself.

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What’s The Plan

Success can not happen with out dedication and most importantly goal setting. Writing down your personal goals is the easiest part of goal setting. The difficulty in goal setting is achieving your goals. So what’s the plan ?

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Okay so what’s one of your goals ? Maybe you want to build your own business or retire at a young age. That’s great, but let’s take it one goal at a time. We all have big plans for ourselves but we don’t really do the work for setting goals to get there. If you are wanting to retire at a young age do you have a stock broker or investment account yet, if not go look for the best of the best rates and returns first then select your plan. This is just one step you can make now towards your goal. Find your vehicle, some cars go faster than others its the same for your investments, just way out the risks. If you choose a faster vehicle for your investments, you might crash. If you choose a slower vehicle you are less likely to crash because your going the speed limit.

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 As you choose your vehicle and set reachable goals, you want to have a vision behind it all. The bigger your vision, the more drive it will bring when accomplishing your reachable goals. Allow me to give your an example:

my vision for everything I do is to influence and change the bad habits of the world to create an atmosphere where people are selfless more than selfish.

SUMMARY: set reachable goals and a line it towards your vision.