How to Earn a Passive Income

[bdayboy]

Understanding and applying the power of leverage and exponential growth is one of the best ways to earn passive income

[beach]

Understanding and applying the power of leverage and exponential growth is one of the best ways to earn passive income

ano po ito? pwede elaborate or point to where we can learn about this? tia.

[sachagirl]

i believe passive income is when you earn money without doing anything.

for blogging, if you do it because you just want to do it and you are earning then it is passive. but, once you blog because you need to earn then it is same as working for income.

stocks, bonds, equities, mutual funds, etc are good sources of passive income.

[boo1980]

I love passive income! So far my husband and I have invested in stocks, a condo unit being rented out, parking slot also for rent, a lot being leased by one of the telco giants. Our goal is to buy several condo units, multiple-door apartments, a residential/commercial building for rental so we can have multiple streams of passive income para sa retirement

[staywithme]

sa ngayon, may na-acquire kaming mag-asawa na bahay na pinapa-rent out.

interesado din ako sa mutual funds. hopefully, soon.

[bdayboy]

ano po ito? pwede elaborate or point to where we can learn about this? tia.

To put it simply:

Leverage - is the ability to get paid on more than what you can do yourself.  Basically you develop a number assets that give you income even if you work less or don't work at all.  Assets as defined by Robert Kiyosaki in one of his books, is something that gives you income on a monthly basis otherwise it's a liability.  A house that's not rented, a car that's not used for public transport, a job are not assets because you pay for maintenance and upkeep of the house and car and if you do not go to work you do not get paid.

A good example would be having several real estate properties that you rent out that give you monthly income on a regular basis.  However with real estate, you're limited to the number of properties you own, you will regularly spend on upkeep and dues and not to mention the amount of capital you need to buy all those properties. 

Exponential Growth - In order to have residual/passive income that will give you true wealth can only be achieved if you have exponential growth.  A very concrete example would be having franchises.  Owners of franchises generate income from continued business from franchisees and royalties from new ones.  As the number of franchises increases, so does the income.  However if you don't have the capital and a good location, it's very expensive and likely to fail.

To do it without money you need to develop assets of people.  For example, the work that you do gives you a monthly income of 20k and is really simple that anybody could do it.  Now teach it to 5 people and each makes 20k, but for teaching them you get paid a percentage of the money they make, now you have leverage as what I've described above.  Exponential growth is when the 5 also teach 5 each and still you get paid a percentage from what the people they teach make.  And as they keep on teaching, your income grows as well but without you putting out a big amount of capital.

Hope this helps.

[PrincessC]

marami nga nagsabi sa akin na parent ko na lang condo ko. eh dun ako nakatira eh... saying.

[MissChievous]

I have stocks and I do online gigs dati (advertising) pero I need to build more passive income streams. I think I am not ready for real estate investing just yet. And, it's kind of hard for me to do MLM. Maybe I'll focus nlg muna sa MFs and hanap pa ng ibang online gigs. Pag naka ipon na, try ko na real estate investing.

[nicola_juliano]

Sana meron din akong passive income. Eto na next target ko. :-)

[ikaela]

I learned how to leverage last year, and, boy, was it the best lesson I learned in investing. I grew up thinking that all debt is bad, that one should never borrow money for anything, and that it's better to save up your own money to buy something or for investing. It was difficult to change that way of thinking, but after unlearning it, it was a most liberating and eye-opening experience. I'm not saying to go ahead and go in debt, but if you come across a low rate and a good investment vehicle with a good risk:reward ratio, why not take it? Fear and lack of knowledge are usually the things that stop people from taking calculated risks, which are very easily solved by educating yourself + growing a pair.

[aspirant22]

i also want to have passive income but don't have enough capital yet.
So I do spend time learning and reading for now.

[mameejhy]

^You only need 5,000 Pesos if you want to invest in mutual funds or stocks

[lizzete]

Recently ..i felt that i was not happy with my work anymore..so i started thinking of other ways to earn money.. first is to invest in franchising..then on stock market....hay puro plans pa lang..i hope mag materialized..

[Papiseed]

^Try stock market maliit lang naman starting.. mga P5k

[alphastar]

Royalties ang source of passive income ko
Hindi siya gaano kalaki pero okay na rin, nakakatulong din kahit papaano.

[Annie M.]

try reading the Millionaire Fastlane. He has a facebook page as well if you're interested. It's really a good read kasi he'll explain the difference between trying to be rich by "savings" and trying to be rich the fastlane way. It's not like other get rich quick scams out there. Ibang iba talaga... try niyo search via google

Thank you for this, sis. I spent all morning reading the summary of the book. Eye-opening!

Here's a summary for those who don't want to buy the book:

http://booknotes.quora.com/Notes-on-Millionaire-Fastlane-by-DeMarco

[trishevil]

I also want to earn a Passive Income. Meron akong shares sa credit Coop. May narereceive ako na annual dividend from this. Considered din siguro ito na passive income di ba? Maliit nga hehe

[MissChievous]

Royalties ang source of passive income ko
Hindi siya gaano kalaki pero okay na rin, nakakatulong din kahit papaano.

Galing mo naman sis. What have you invented or created sis for that royalty?

[alphastar]

^nyahaha i freelance as a graphic designer and sell my designs online sa mga aggregator sites like spoonflower, society6, etc. marami nga lang talagang sobrang gifted pero kahit papaano eh nabibili din naman ang mga designs ko

[lizzete]

Hi sisses..also reading the summary..hay parang nakakarelate ako haha ako ata yun mahilig kasi mag isip na someday magkaka business ako blah blah..ang tanong kelan nga ba ang someday na yun..it never happens waah

Thank you for this, sis. I spent all morning reading the summary of the book. Eye-opening!

Here's a summary for those who don't want to buy the book:

http://booknotes.quora.com/Notes-on-Millionaire-Fastlane-by-DeMarco