We’ve talked about passive income before. Now let’s get to work and start getting that big money wheel to turn your way. There are 3 things you need to do in order to start building your passive income empire:
A . Educate Yourself
Even if somebody offers you a “deal of a lifetime” don’t throw your money into anything until you understand it (and your alternatives) completely. Sure, you might pass up a great passive investment by slowing down. So what?
If experience is any indication, the odds are stacked squarely against any investor who doesn’t understand what he or she is getting into. Fortunately it’s not difficult to learn and discover good passive investment ideas. There are plenty of free resources on the net starting right here at Pilgrim-Land. 😀
However you do it, make sure you understand the terrain before you venture out into the investment jungle.
If you want to put your money to work you have to get out of the “certainty mindset”. There is always uncertainty and risk in equity investments. This is true over the long and short term. There is a lot you can do to reduce your investing risk of course. But you can never eliminate it.
If you can’t stomach some uncertainty, you will find it very difficult to stick with your investment plan. That will lead to big losses and disappointments. Who needs that?
C. Start Small
Most of the wealthy people you know started with nothing. They built their portfolios from the ground up and so can you. If you focus on real estate, buy small properties to start with. This way you learn how real estate works without taking huge risks.
If you want to start with equity stocks and funds it will be easier for you because you can launch an investment program with as little as $50. My best advice if you go this route (which I personally love) is to automate your investments by setting up an auto-deposit every month. This way you don’t even have to think about it. The bank will debit your checking or savings every month and send it to your investment account for you.
You can either work for your money or let your money work for you. When your money works for you that is called passive income. In order to create serious passive income, you have to educate yourself, get comfortable with risk, start small and automate your investing.
This takes work. It takes patience. But it really pays off.
Are you building up a passive income mega-empire? How?