Rich people are fine living off of interest (1 percent of 1 BILLION dollars is still 10 million dollars just for having an account somewhere)
But as you know, percentages scale. It doesn't seem like there are any 100% safe ways to store your money that keeps up with inflation/cost of living increases each year (5%). Or is there?
Would love to know something that is safe that still earns money or at least keeps up with inflation for amounts $100,000 and under.
It seems that way ! The rich get richer and the poor get poorer.
Per @Cory, C: Rich people are fine living off of interest (1 percent of 1 BILLION dollars is still 10 million dollars just for having an account somewhere)
Mathematically true, but "rich people" don't really live on interest. They live on income producing assets in the broadest sense.
Per @Cory, C: But as you know, percentages scale. It doesn't seem like there are any 100% safe ways to store your money that keeps up with inflation/cost of living increases each year (5%). Or is there?
I think you're on the right track, but I find that you aren't asking some important questions. Might you wonder why there is inflation? Although recent data suggests that U.S. core inflation rate is 1.6%, I wonder what situation your in that makes it feel like 5% (Could be your living in a more expensive state)? There are many factors and honestly asking a lot of questions will get you to the right answer. Basically we should use the Scientific Method even on finance.
Per Cory, C: Would love to know something that is safe that still earns money or at least keeps up with inflation for amounts $100,000 and under.
Not knowing your particular situation, I have only added more questions thus far. Still I don't want to leave this post without any legitimate information. So I suggest you look into TIPS: https://www.investopedia.com/terms/t/tips.asp
Also if you're going to put in some work use the following site: https://www.doctorofcredit.com/
Chase after bonuses and high yield interest rates of banks.
None of these options will bring in 5% because as said previously that the U.S. Core inflation rate is currently at about 1.6% so I wouldn't expect anything significantly higher than 1.6%.
Per @Shannon P It seems that way ! The rich get richer and the poor get poorer
I'm glad you used the word seems. More often than not people have the mindset that they will never be rich. Now it's true for the most part that the rich get richer and the poor get poorer, but that is due to a lack of opportunity and education. Though it may be hard for the vast majority of us, we still can use the principals of the rich to grow our money and eventually move up in life.
Another example of passive income would be royalties from copywrite protected materials. So you could say that creative people would fall into that category also? You need to create wealth, instead of just earnIng wages. Of course, that is easier said than done.
@ Dragan P. Copywrite protected materials is a great idea. As a side note you can also patent things. I know people who've made money just creating a latch for a product that already exists and they get royalties from that.
Another idea that is not completely passive but really close is what I do for a living. I have several online shops on Etsy and Ebay selling art prints primarily. Once these are designed and in the shops the only thing i do is fill orders with companies that print, package and ship to my customers. That step can be automated also with some companies like Printful.com I'm able to do this work from anywhere with wifi, filling an order takes me under 2 minutes,
I believe in making money 24/7 and you can only do that with a product-based business because service businesses will always trade time for money. Digital products are the best because you can keep the cost of overhead down. Think books, music, videos, courses, etc.
I'm going to try to learn a new skill so I can create a passive income for myself
He's a smart kid… https://www.youtube.com/watch?v=DajKPbotAdo
Thank you for sharing that video, Cat B. Seems to cover most of the "scattered" information I've been finding/learning about passive income.
So true
Thank you for sharing that video, Cat B. Seems to cover most of the "scattered" information I've been finding/learning about passive income.
you're welcome:)
Yay
I'd like to echo the recommendations for The Simple Path to Wealth and JL Collins' blog. Since he wrote it for his daughter, it's easy to read and it assumes you start with a small income :)
Ive been doing alot of research on passive income and alot of it seems like you need a bit of money to even start.. Youtube hasnt helped much because it seems like they try and sell you on "why" this and that is awesome for passive income but not many actually explain the "how"!
Ive been doing alot of research on passive income and alot of it seems like you need a bit of money to even start.. Youtube hasnt helped much because it seems like they try and sell you on "why" this and that is awesome for passive income but not many actually explain the "how"!
Check out this girl on Youtube, she gives good info for no charge. https://www.youtube.com/channel/UCC8wczy7734jKPhiR2UkS9A
Check out this girl on Youtube, she gives good info for no charge. https://www.youtube.com/channel/UCC8wczy7734jKPhiR2UkS9A
Thanks @Cat B. I subscribed.
Thank you so much for the information. I never heard of that.
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Does making music count?
@Ming C It could count; while it takes quite a bit of time up-front [and money for proper equipment], if you have the music as a digital product it is possible to bring in some passive income. If you have a loyal fanbase, it may be even more possible for a CD…though that would add to overhead costs.
I do not have personal experience in this, but I know quite a few music majors.
writing on kindle, seems to generate income for a large number of people
direct sales is another great option and you learn new skills
following
I would like to make passive income.
