What is Passive Income? It can best be defined as income generated where the individual is not actively involved.
It can come in many forms ranging from dividend payments from stocks, rental income from property or something as simple as a gumball machine.
This site has been designed to teach as many methods as possible on how to invest and build enough investments to start generating passive income and create a cashflow which is ongoing in your everyday life without you having to do anything.
it is important that i stress here that i don't have any real get-rich quick schemes to make a quick buck.
The best way i can describe the process is that of 'Wealth Creation' With solid effort and motivation from the beginning a business or investment can be set up to start generating an income for you with little more work required from you once the hard work is done.
The gumball machine example is a good one.
Lets say i decide on purchasing a Gumball Machine and want to place it in a location where i know it will generate interest from the demographic mainly interested in gumballs.
A good example would be kids or in some cases myself :) I do the research and find that a kids play area at a restaurant would be perfect, i make a deal with the owner that he can keep a certain percentage of the profits if he lets me place my machine there and helps me fill it up with gumballs if it's running low...
(i know im lazy) The best part is i now have a passive income.
If i sat on my butt all weekend watching dvds while kids kept buying gumballs at the restaurant i would still make money.
this is known as a passive income stream and it can be done in a number of ways which will be explained throughout the site.
The opportunities are endless and there is no real limit to where your imagination can take you! The most important part of a wealth creation strategy is making sure that you correctly use and develop what i like to call a financial mindset.
I know for a fact that not many people have it in them but basically it involves evaluating things based on how much money it can generate for them.
I definetely dont want to sound like a preacher because i absolutely understand that in life not everything is about money and there are far more important things.
Like i have mentioned before the fact that you are on this site shows me you are exploring the concept of building wealth and creating passive income so i know that your a little financially minded already! When i say financially minded the best way i can put this is to pull an example from my favourite author Robert Kiyosaki.
If you see someone driving down the street in their brand new Porsche sports car with a girl under his arm and expensive jewellry all over him would you consider him to be rich? Well maybe he is but maybe he has taken out a loan to buy all his expensive gear and is borrowing money purely for his image.
In any case one thing is for certain those items he spent money on are not going to generate any money.
It is important though to remember that when buying something like a fancy car, watch, ring whatever it might be, that it is purely for show and in most cases cannot build wealth.
Mostly in life you will come across three different classes of people those who cant afford things, those who can afford things and use their hard earned salary to purchase them and those who use their money to invest toward a wealth creation strategy and go without some of the things that are not necessities.
Now buying a luxurious item is not the wrong thing to do and in some cases you should treat yourself, you just need to do so in the knowledge that you are prepared to sacrifice a certain amount of money for that item.
Even a massive house with a pool and spa and tennis court is nice and would be fantastic but it is not an income generating asset and the money spent on the item is money not earning you more money and should not be a part of a wealth creation strategy.
It can come in many forms ranging from dividend payments from stocks, rental income from property or something as simple as a gumball machine.
This site has been designed to teach as many methods as possible on how to invest and build enough investments to start generating passive income and create a cashflow which is ongoing in your everyday life without you having to do anything.
it is important that i stress here that i don't have any real get-rich quick schemes to make a quick buck.
The best way i can describe the process is that of 'Wealth Creation' With solid effort and motivation from the beginning a business or investment can be set up to start generating an income for you with little more work required from you once the hard work is done.
The gumball machine example is a good one.
Lets say i decide on purchasing a Gumball Machine and want to place it in a location where i know it will generate interest from the demographic mainly interested in gumballs.
A good example would be kids or in some cases myself :) I do the research and find that a kids play area at a restaurant would be perfect, i make a deal with the owner that he can keep a certain percentage of the profits if he lets me place my machine there and helps me fill it up with gumballs if it's running low...
(i know im lazy) The best part is i now have a passive income.
If i sat on my butt all weekend watching dvds while kids kept buying gumballs at the restaurant i would still make money.
this is known as a passive income stream and it can be done in a number of ways which will be explained throughout the site.
The opportunities are endless and there is no real limit to where your imagination can take you! The most important part of a wealth creation strategy is making sure that you correctly use and develop what i like to call a financial mindset.
I know for a fact that not many people have it in them but basically it involves evaluating things based on how much money it can generate for them.
I definetely dont want to sound like a preacher because i absolutely understand that in life not everything is about money and there are far more important things.
Like i have mentioned before the fact that you are on this site shows me you are exploring the concept of building wealth and creating passive income so i know that your a little financially minded already! When i say financially minded the best way i can put this is to pull an example from my favourite author Robert Kiyosaki.
If you see someone driving down the street in their brand new Porsche sports car with a girl under his arm and expensive jewellry all over him would you consider him to be rich? Well maybe he is but maybe he has taken out a loan to buy all his expensive gear and is borrowing money purely for his image.
In any case one thing is for certain those items he spent money on are not going to generate any money.
It is important though to remember that when buying something like a fancy car, watch, ring whatever it might be, that it is purely for show and in most cases cannot build wealth.
Mostly in life you will come across three different classes of people those who cant afford things, those who can afford things and use their hard earned salary to purchase them and those who use their money to invest toward a wealth creation strategy and go without some of the things that are not necessities.
Now buying a luxurious item is not the wrong thing to do and in some cases you should treat yourself, you just need to do so in the knowledge that you are prepared to sacrifice a certain amount of money for that item.
Even a massive house with a pool and spa and tennis court is nice and would be fantastic but it is not an income generating asset and the money spent on the item is money not earning you more money and should not be a part of a wealth creation strategy.