When most people think of investing opportunities, they think of stocks, bonds, and precious metals. While these are still some of the most common ways to invest, the platforms have evolved, and there are more options than ever. Gone are the days of mountains of paperwork, high brokerage fees and unattainable account minimums. Now you can invest on your own terms.

Nobody gets early FI investing in bonds, CD’s, or even stocks unless they make a huge income or are extremely frugal or a combination of both. Paper assets just don’t provide enough returns. Business income can be great but it is typically not as semi-passive as I would like and there is a relatively high failure rate. That is if you can monetize an ideal to begin with. RE investing needs to be higher ranked IMO as a way that the “average guy” can become FI.
Residual income models of equity value have become widely recognized tools in both investment practice and research. Conceptually, residual income is net income less a charge (deduction) for common shareholders’ opportunity cost in generating net income. It is the residual or remaining income after considering the costs of all of a company’s capital. The appeal of residual income models stems from a shortcoming of traditional accounting. Specifically, although a company’s income statement includes a charge for the cost of debt capital in the form of interest expense, it does not include a charge for the cost of equity capital. A company can have positive net income but may still not be adding value for shareholders if it does not earn more than its cost of equity capital. Residual income models explicitly recognize the costs of all the capital used in generating income.
One word of advice, and something I intend to do once I have the money saved up, is to build or buy out property that can support apartments or townhomes. One tough mistake some people make is buying a pair of homes to rent out and they get a nice $2,000-$3,000 a month but that’s it. Buying a house is expensive and the rental prices keep lower income families from potentially coming to you with their money to rent. If you have an acre to work with (more or less is OK too) you should be talking to a contractor to build apartments or townhomes. You will make a little less per unit BUT your audience grows significantly because now you can have college students, single parents, older folks, etc. all able to afford your rental units AND instead of capturing one $1,000-$1,500 a month payments, you can probably charge $700 a month per unit (or more, depending on the market) and build maybe 3, 4, 5, 10 units for the price of a home or two and now you’re making something like $2,100-$10,000 a month. It all depends on what you have to invest but if you’ve got $250,000+ I’d highly suggest you talk to a bank/investor that can get you in touch with a good contractor to build on a property and get permits and take out a matching $250,000 loan (I’ve read that $500,000 is plenty to build a good amount of apartments to start) and you can fill up your apartments and make a killing every month. You’ll have more tenants to deal with but if you’re competitive with your pricing you won’t have a hard time keeping tenants or replacing them.
If you’d prefer to skip the startup phase, you might want to buy a blog that’s already built and earning revenue. This is actually pretty easy to do as a lot of people start blogs, and then get bored with them. Getting a blog going is a labor-intensive process, and it’s not uncommon for people to give up before they’ve reached their full potential.
I just wanted to say how nice it is to see such a positive exchange between strangers on the Internet. Seriously, not only was this article (list) motivating and well-drafted, the tiny little community of readers truly were a pleasant crescendo I found to be the cause of an inward smile. Thank you, everyone, and good luck to you all with your passive income efforts!! 🙂
2. Real Estate: Real estate is #2 for one simple reason, leverage – using smart debt and other people’s money. When looking at real estate rents and the potential for income real estate provides, it is the trifecta of residual income. First, a home or rental property can appreciate, so capital appreciation is the first long-term benefit of owning a home. Second, rent. Other people are paying the mortgage, insurance, property taxes and maintenance while you own that piece of real estate. Third, tax protection. Rental income is taxed at a lower rate than ordinary income and you can depreciate real estate by taking a paper deduction on your annual tax return not to mention expensing the cost of mileage, mortgage interest, and updates to the property. Rentals done right can generate almost double what the stock market can in dividends and interest. The fourth and maybe most hidden, but important benefit is that over time rent’s rise, protecting your cash-flow against inflation, while your mortgage interest can be at a fixed rate potentially.
Active income, on the other hand, involves earning money in exchange for a service. It could be a salary, an hourly wage, commissions, or tips. It’s essentially a trade of your time for a fixed dollar amount. Most people choose to live this way, and there’s nothing inherently wrong with that, as long as you understand that there will be a limit to how much money you can realistically earn.

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Book sales ($36,000 a year): Sales of How to Engineer Your Layoff" continue to be steady. I expect book sales to rise once the economy starts to soften and people get more nervous about their jobs. It's always best to be ahead of the curve when it comes to a layoff by negotiating first. Further, if you are planning to quit your job, then there is no downside in trying to engineer your layoff so you can get WARN Act pay for several months, a severance check, deferred compensation, and healthcare.


Residual income is different from a salary, or linear income, which is paid out strictly based on the number of hours a person works. Someone who works on a salary is often said to work “paycheck to paycheck.” This is because he pays all of his bills with his first paycheck and then must wait until he gets paid again to have more money. Ideally, someone will work hard building up a business so that he can enjoy the residual income once his goals have been met. Then he can work on additional projects while still earning money from his business.
Track Your Wealth For Free: If you do nothing else, at the very least, sign up for Personal Capital’s free financial tools so you can track your net worth, analyze your investment portfolios for excessive fees, and run your financials through their fantastic Retirement Planning Calculator. Those who are on top of their finances build much greater wealth longer term than those who don’t. I’ve used Personal Capital since 2012. It’s the best free financial app out there to manage your money.
For those who prefer a more do-it-yourself style but still want their investments to be managed automatically, a robo-advisor like Betterment may be better suited. After completing an initial questionnaire, this program will automatically invest your money based on things like your risk tolerance and time horizon. They’ll even rebalance your portfolio when necessary – all automatically, of course!

Several people are receiving one of these 26AS statement email message from IT department and they are panicking. The sender of these email is”DONOTREPLY@incometaxindiaefiling.gov.in” with the subject line saying – File your IT Return to report your income. Few people have also received SMS from DZITDEFL or VKITDEFL on the same topic. We will cover the […]


Ask yourself how many hours a week do you spend sitting in silence, coming up with an idea and working on your idea? We’re so busy with our jobs that our childhood creativity sadly vanishes at some point in our lives. There are food bloggers who clear over $15,000 a month. There are lifestyle bloggers who make over $10,000 a month while living in Thailand. And there are even personal finance bloggers who’ve sold their sites for multi-millions.
Employees’ Provident Fund Organisation ( EPFO ) today revealed that the proposal to credit exchange traded fund ( ETF ) units to provident fund accounts has been approved. See this News Article There are approximately 4 .5 crore members in the EPFO presently. Nevertheless, account holders will see them incorporated in their PF accounts by March-end in the coming year.  EPFO’s Central Provident Fund Commissioner revealed that […]
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The goal of EVA is to quantify the charge, or cost, of investing capital into a certain project or firm and to then assess whether it generates enough cash to be considered a good investment. The charge represents the minimum return that investors require to make their investment worthwhile. A positive EVA shows a project is generating returns in excess of the required minimum return.

Let’s say you just decided to sign up for the Chase Sapphire Preferred® card. Once you had the card in hand, you could begin using it for purchases and earning cash back for every swipe. For every dollar you spend on regular purchases, you’ll get 1 percent back in the form of rewards. For dining and travel purchases, on the other hand, you’ll score a smooth 2 percent back.


As interest rates have been going down over the past 30 years, bond prices have continued to go up. With the 10-year yield (risk free rate) at roughly 2.55%, and the Fed Funds rate at 1.5% (two more 0.25% hikes are expected in 2018), it’s hard to see interest rates declining much further. That said, long term interest rates can stay low for a long time. Just look at Japanese interest rates, which are negative (inflation is higher than nominal interest rate).
Further, the clarified order awarded Karen sixty percent of the residual income that was earned from the income and commissions generated by the brokers within the first category, and after the date of divorce. However, the order also stated that Karen was not entitled to any of the residual income generated by the second or third category. Brad filed for a new trial, but the trial court denied it. He appealed, and the appeals court ultimately affirmed the trial court’s clarified order.

6. Network Marketing: Network marketing is a unique business model and has made more millionaires than any other business. The industry as a whole is growing and more companies are trying to leverage referrals or direct sales to increase revenue and market products. However, the industry as a whole is confusing to most and requires a tremendous amount of mental and emotional fortitude to make residual income possible. Furthermore, the sustainability of that income vs. the effort you must put in is important to consider.
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It’s obvious that stocks outperform real estate in terms of capital gains, but I would like to see S&P compare to Real Estate in SF, Manhattan, LA. Our house in NC was $80,000 20 years ago. It’s only $150,000 now. Same house in Santa Monica went from $200,000 to $1.8 million. People who happen to bought real estate in major metropolitan would have a natural positive association with real estate investment.
Real estate is the obvious choice if you are going to make money on your money. I personally am not at the point where I can do any of this in a meaningful way BUT my parents are and they now own a couple homes outright and are collecting income from them to power their retirement income. It makes a lot more sense for anyone that has a chunk of cash sitting in the bank and are planning on slowly drawing from it because you technically still have all that money in a property (or multiple properties) and can sell them if you really need the lump sum of cash but you’ll earn great interest payments until you do that.
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