Graham Stephan
@grahamstephan·5.2M subscribers·1.6K videos
The ULTIMATE Beginners Guide to making Passive Income Step-By Step
Posted
August 29, 2018
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60,902
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August 29, 2018
60,902
3,042
460
5.75%
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19:53Now PlayingLets talk about probably one of the most in-demand, most asked for, and biggest topics on the history of the internet and YouTube…and that is making Passive Income. Enjoy. Add me on Snapchat/Instagram: GPStephan
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Passive income is broken down into two subsets: Investing your Money and Investing your Time. Passive income is NOT EVER FREE.
If you’re going to be BUYING your way to passive income, it’s very simple: Generally you can see anywhere from a 3%-10% return on your money annually with some decent consistency, predictability, and reliability, without going too risky to a point where your income could dry up any month. This means that for every $10,000 you invest, you should be able “buy” yourself $300-$1000 per YEAR in passive income.
When buying your way to passive income, your return is DIRECTLY correlated with the amount of risk you take, and how much time you have to spend setting it up. Arguably real estate takes some time to set up, and even with a property manager, it’s never truly 100% passive…it might be more like 98% passive. With an index fund, a 3% withdrawal is virtually risk free, guaranteed, and requires you to do NOTHING - and your return is directly correlated to that, by the fact that you make LESS.
However, your TIME is generally, by far, the most lucrative way of creating and sustaining passive income. Namely because you can do the work upfront, let it run, and oftentimes the types of passive income businesses reliant on your TIME are often the same businesses that are easily scalable, meaning you have nearly unlimited potential in how much money you decide to make. Now while spending your time creating passive income is often labor intensive and could take weeks or months to even see a return on your time, once it’s up and running, this could last you a very, very long time.
It’s very important to realize that, when you’re spending your time creating passive income, you are paid in direct proportion to amount of value you provide. If you’re not providing value in a way where people will SEE IT, you won’t make money. Using your time to create passive income is just as much providing value as it is marketing yourself to those who you will offer a service for…it’s that simple.
The most difficult part when spending your time to create passive income is just making those first few dollars. Until you’ve seen SOMETHING back in return, it’s really, really easy to get discouraged. But once you see even fifty cents coming in, or a dollar, or a few dollars…that stuff gets you so excited that you created something from nothing…that it was entirely your own effort that lead you to making a little extra money. From there, it’s about growing it and scaling upwards. It’s about expanding on what works, cutting what doesn’t, and improving those income streams.
Ideally, in a perfect world, you’d have a combination of both types of passive income - by investing your money, AND by investing your time. This gives you the ultimate exposure to different markets where one is independent of the other, and when you make money from the TIME aspect, just move it over to the MONEY aspect and continue to grow that, as well.
Even though this video is less about giving you specific ideas - because lets face it, there a million ideas out there and you can get that with a quick google search - I really hope this can help lay the framework for you to build on, and eventually create your own passive income mini empire from.
For business inquiries or paid one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com
Suggested reading:
The Millionaire Real Estate Agent
Your money or your life
The Millionaire Real Estate Investor
How to Win Friends and Influence People
Think and grow rich
Awaken the giant within
The Book on Rental Property Investing
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