Make Your Money Grow
If you’re going to grow your assets, you’ve got to put them to work for you. This can be easier said than done. What you’re going to need to do is start out by taking stock of what you have, what you need, and what is elastic. If you don’t have any elastic investment capital, you’ll need to find some somehow. It’s better to acquire it without a loan.
When you’re looking to make your money grow passively (i.e., passive income), there are a lot of different techniques out there, but what they all have in common is no guarantee on certainty. Even something that seems 99% sure can be thrown off by some unpredictable exigency of life rearing its ugly head.
There’s a reason people are selling mortgages to pay off their debt. And this technique can be a great way to get debt free, while simultaneously providing you with some level of investment capital. But it’s also not the most desirable way to get what you want.
What you’re looking for is a PIG, or Passive Income Generator, and there are a number of ways to find such a financial solution. But you are going to have to work to “get that ball rolling,” as the saying goes.
Search for Success
First, look around to see what’s available to you where you are. There are job sites out there that can help you find specific niches of skill. If you’re in medicine, but only family medicine, you’ve got options. There are many family medicine jobs available; according to HospitalRecruiting.com, doing a search with the term “Family Medicine Jobs” as of 02/19/2018 resulted in: “… 2,044 jobs matching your criteria.”
You may be surprised at what’s available to you based on that which already exists in your repertoire of skills. In order to have passive income, you need to have primary income; basing it around a legitimate skill just makes sense. Once you’ve got your primary income figured out, and you have some capital to work with, it then becomes time to put that money to work for you. If you’ve got $5k and some downtime, you can get $1k back on that inside a year’s time.
Buy an RV for under $5k—you can find some that you can simply park on your property—and hook it up to electricity. Clean it up. Now put an ad out on Craigslist that you’re renting out your RV for $500 a month. In 12 months, you’ve got $6k. Do it for three years to varying renters and you can pull in $18k.
If you do that for four years, you can get $24k passively. You can then use that money to purchase a prefabricated home. Rent that out for $1,000 a month. In four more years, you’ve got $48k, which you can put as a down-payment on a duplex (provided you save the money, of course). Finding the right duplex will take some doing, but if you find such a property and rent it out to two separate renters, you can make $2k a month. In four years, you’ve put another $48k into the cost of the duplex. Once you reach pay-off rate, cash-out.
Vision and Patience
If you’ve got $5k, in 12 years through passive income means, you can turn that into $96k or even more, depending. If you keep paying off the duplex till you own it outright, and it totals about $200k, within 20 years of your initial $5k investment, you’ve multiplied your seed money 40-fold. What you can do now is sell that duplex.
If you’ve bought well and ensured maintenance and upgrade over time, you can even increase property value. Adding a solar array, a deck, and keeping things up-to-date can make the $200k duplex you bought worth $250k, especially if you chose the neighborhood right.
Once you’ve sold it, you’ve got some real money to focus on some real investment. You could buy a franchise fast food store for that price and see more money come back to you much more quickly—again, provided you buy right.
There are other ways to passively make money as well. Stock investments can prove exceptionally lucrative, but you’ll have to put some time in to get that “ball rolling” as well. If you don’t have seed money, live beneath your means and pay off all debts until you do, then find a way to use it. If you’re diligent, and you’re clever, and you’re motivated, you can potentially turn $5k into $500k—or more—inside 30 years.
Have there been any interesting ways you’ve made passive income? Let us know in the comments below.