Recently, there has already been a speech about passive income . Today I want to paint a detailed and simple instructions on how to achieve passive income and a high standard of living. It has long been worn in the air, but in a clear, fully painted form, I have not yet met.
So. What is required of the person who decides to follow her?
- the ability to save and generally rationally manage money
- the ability to wait (you can get rich quickly only in the Land of Fools – in the sense of robbing fools)
- initial knowledge of investing
What are we doing?
1. Save part of the income and create initial capital. Yes, we stupidly postpone 10-20% of the salary or use more cunning technologies (I will write a post about it later). Initial capital may be 100 – 150 thousand.
2. We start investing – in reliable instruments, for example, mutual funds, bonds and even deposits – it is important for us that there be at least a small capital gain with high stability. I repeat, according to this scheme, you can get rich far from immediately.
3. For, say, 10 years (I warned;))) we continue to accumulate and invest. Part of the money can be gradually transferred to riskier instruments — buy blue chip stocks, or even less visible, but promising companies, for example.
4. As a result, thanks to the work of compound interest and our additions, we have a fairly solid capital.
5. For a person who is simply seeking security, perhaps the best solution would be to invest in commercial real estate – to buy part of an office building, for example. And rent it out.
The advantages are many:
– real estate, unlike stocks and bonds, cannot fall strongly in price (there are fluctuations here, the crisis is proof of that, but in any case it is REAL property, not paper)
– on the other hand, renting out commercial real estate can be receive a good passive income – hardly less than the interest on the deposit or profit in the mutual fund
6. And now, with real capital and some experience in investing, you can start all over again, investing in riskier instruments, increasing your income.
Idol novice investors, Robert Kiyosaki, do not like this scheme. I, frankly, also – the business plan of an outgoing guy, which I mentioned at the end of the article about passive income, I prefer. However, no one bothers to follow this scheme in the initial stages, and when something better comes up (comes up), do not yawn.